Holiday Pay Entitlement?

[mrimac94]

Hi all,

 

I've begun working with a teaching agency and have been on assignment since October 2016. The contract provided to me by the agency states that 'The Temporary Worker is engaged as a self-employed worker, although CT is required to make stautory deductions from the Temporary Worker's renumeration in accordance with clause 4(a)'. So I am self-employed but the agency deduct NI and PAYE tax from my pay - which is fine.

 

The booking confirmations I have received from the agency cleary state Daily rate, length of booking, place of booking. There is no mention of a separate holiday pay payment to pay slips etc.

 

I was under the impression that I was not entitled to holiday pay as I am now self-employed, however, from my reading online I believe I may be entitled to holiday pay as I am doing a job long-term that is comparable to a role that does include holiday pay.

 

I have questioned my agency regarding this and received the response that holiday pay is part of my daily rate and that 12.07% of my daily rate is set aside for holiday pay.

 

I find this misleading as firstly, this has never been explained to me and secondly because the contract they have provided me is very misleading in terms of entitlement to holiday pay:

 

Here's what it says:

 

Under the Working Time Regulations 1998, the Temporary Worker is entitled to 4 weeks' paid leave per leave year.

 

The Temporary Worker agrees that payment in respect of the entitlement to paid leave shall be made together with and in addition to the Temporary Worker's rate.

 

Payment in respect of any entitlement to paid leave shall be made as part of the Temporary Worker's rate.

 

Where on earth do I stand with all this??

[ericsbrother]

generally this is not allowed but there are exceptions. AS the agency is collecting the tax and NI I do not believe that your case falls into one of the exceptions. If you just dont turn up one day what will the agency say? If they make a fuss then you are not self-employed, likewise if you decide to work only 3 days a week or whatever. There are tests for who is self employed and who isnt and this ability to say no to work is one of them

[sangie5952]

This is classed as agency work, is it not? In which case it actually is legal, but only if it is clearly shown. In terms of the contractual terms I actually think that it is consistent. They don't appear misleading to me. BUT the crucial a question is what about your payments? The payments to you must clearly show the holiday pay as a seperate item. If they do not, that is the bit that makes it illegal.

[sangie5952]

generally this is not allowed but there are exceptions. AS the agency is collecting the tax and NI I do not believe that your case falls into one of the exceptions. If you just dont turn up one day what will the agency say? If they make a fuss then you are not self-employed, likewise if you decide to work only 3 days a week or whatever. There are tests for who is self employed and who isnt and this ability to say no to work is one of them

 

I do agree with you on the self employment bit, which I think bears consideration. But separately. The status of rolled up holiday pay, whether a worker or an employee, is about the clarity with which it is shown. The government and ACAS recommend not doing rolled up holiday pay, but it's a bit more complex than simply being illegal.

[mrimac94]

Thanks for all your replies. Seems like it's more complicated than I first thought! I did find this from ACAS:

 

You might be told that you’ll get extra pay on top of your hourly rate, instead of being given paid holiday leave. This is known as ‘rolled-up’ holiday pay.

 

The idea is that you store up the extra pay and use it when you want to take time off work.

 

Although the government and Acas recommend employers don't use rolled-up holiday pay, it's legal if your employer does it clearly. For example, they can’t say "You’ll be paid £8 an hour which includes rolled-up holiday pay." They must say "Your basic hourly pay is £7.20 per hour. In addition to this you’ll receive 80p per hour rolled-up holiday pay."

 

Your payslips must show the amounts separately. If they don’t, you should raise this issue with your employer. If you visit your local Citizens Advice, make sure you bring a recent payslip with you.

 

My pay slip just shows Daily Rate £xxx.xx - 20 days £xxxx.xx

 

There is no mention WHATSOEVER of Holiday Pay!