IMPORTANT development that should stop umbrellas and agencies stealing your holiday pay!
The government has issued it’s response to the recent consultation on holiday pay and confirms that rolled up holiday pay will be officially allowed from next year.
This is important for umbrella and agency workers, some of whom have had holiday pay unfairly withheld from them, partly due to rolled up holiday being ‘unlawful’ and therefore not offered. There are some other legal loopholes behind the withholding of holiday, which in our opinion are simply excuses dreamt up by lawyers paid to do so.
Now there are no excuses. Providing you fall into the category of an “irregular hours” or a “part-year” worker then you could receive your holiday paid on top of your earnings – so it isn’t left accruing at risk of never actually being paid to you.
The downside is that you won’t get paid when you take time off, which is why it was previously unlawful – as it contradicts the idea of receiving a paid break. This is why it must be an informed choice. Legislating to allow rolled up holiday pay is something that I and others have been campaigning for, and it’s fantastic to finally be heard!
The new legislation will apply to holiday years that start after 1 April 2024. The draft legislation indicates that rolled up holiday will be calculated on the basis of 12.07%, which has previously been the industry norm.
It’s important to note that just because rolled up holiday will be an acceptable practice, it doesn’t mean that your umbrella or agency will be obliged to offer it to you. Make sure you ask them at the outset so you can make an informed decision.