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Employee on furlough loses claim for holiday pay

Makbool Javaid, Partner - Simons Muirhead & Burton
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In the case of D Perkins v The Best Connection Group an employment tribunal has ruled that that holiday pay doesn’t accrue on furlough. The ET ruled that Mr Perkins, a contractor, was not a worker for the purposes of the Working Time Regulations 1998 and therefore didn’t accrue annual leave during that time.

The Best Connection Group is an employment agency placing temporary/ agency workers on assignment at various clients. The claimant worked on various assignments until the lockdown was announced in March 2020. The claimant’s last shift on assignment was as a driver’s mate.

Analysis of his contract with TBCGL also highlighted that the agreement only existed when he was on assignment, specifically that he would not “receive payment from TBC or its clients for any time not spent on assignment whether in respect of holidays, illness or absence for any other reason.” The judge also ruled that the claimant was unable to work for TBCGL while on furlough and therefore couldn’t claim to be on assignment.

Perkins had also claimed unfair dismissal, but this was dismissed on the basis that he was not an employee and he had not been employed for two years, as is required to bring an unfair dismissal claim.

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