How should employers deal with bank holidays that fall within a period of furlough?

Where bank holidays are included in an employee's holiday entitlement under their contract, employers should either pay the employee in full for a bank holiday that falls during the period of furlough, or allow them to take a day's annual leave at a later date.

Where a furloughed employee is not entitled to bank holidays off under their contract, a bank holiday will have no effect on their pay during the furlough, or on their annual leave entitlement.

The Government has published guidance on Holiday entitlement and pay during coronavirus (COVID-19), which confirms this approach to bank holidays falling during furlough.