Staff holiday allowance can be carried over for two years

HOLIDAY allowance not taken because of the health crisis can be carried over into the next two years, the Government has said.

Workers will be able to roll over up to four weeks of annual leave following a change in regulations.

Typically any remaining annual leave out of the statutory 28 days is lost if not taken. Previous rules allowed for up to eight days to be carried over into the following year, but only at the discretion of the employer.

Now employers who refuse their workers rolled over holiday time will face financial penalties, the Department for Business, Energy and Industrial Strategy said.

The changes will amend the Working Time Regulations, which apply to almost all workers, including agency workers, those who work irregular hours and workers on zero-hours contracts. Alok Sharma, the Business Secretary, said: “Today’s changes will mean these employees do not lose out on the annual leave they are entitled to as a result of their efforts, and employers are not penalised.”

The Government said the measures are designed to give added flexibility to employers affected by coronavirus and to avoid staffing shortages in key industries including healthcare and food.

Elsewhere, the Chancellor said the Government would cover the National Insurance and pensions contributions that employers make for their workers.

Rishi Sunak announced the aid and that it will apply to businesses furloughing their staff during the crisis, in addition to the existing 80 per cent wage subsidy they can already claim from the Government for workers who would have been made redundant.

In addition, the Government confirmed that people who had been made redundant after Feb 28 can be re-employed and placed on furlough.