The government has announced a consultation process on their plans to fully legalise rolled-up holiday pay, making it easier for umbrella company workers to know how much they’ll be paid
Holiday Pay Articles
Holiday pay has been in the news following a ruling that overtime (and possibly commissions) should be reflected in an employee’s holiday pay but how does this affect contractors who work through contractor umbrella companies?
Holiday pay is in the news following a landmark tribunal case that ruled that overtime should count towards a workers holiday pay rate. What this means is that if overtime is part of your normal working week then you should receive a similar wage when you are also off on holiday i.e. it should not revert back to your basic wage excluding overtime.
New figures suggest that dodgy umbrella companies could be costing thousands of temporary workers through lost holiday pay.
Freelance support group IWORK calculated that at an average salary of £26,000 per year, umbrella workers would be missing out on more than £3,000 of holiday pay.
They estimate that if just 2% of the UK’s 1.6 million temps are affected, they would be shortchanged by a collective £97 million per year.
Reaction continues to dominate the news in relation to the tribunal cases (Road maintenance company Bear Scotland v Fulton, engineering firm Amec v Law and industrial services group Hertel v Wood) that ruled that workers who regularly perform overtime should have these earnings reflected in their holiday pay as this is their “normal pay”.
If you are a company looking to employ temporary staff but are worried about the legal aspects of this then perhaps an Umbrella Company could help?