Holiday Pay Articles

Compliant Umbrella Companies

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 – Contractor Umbrella Company

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.

4Dm1n | 9 August 2009
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The recent Lords ruling in the case of Stringer v HMRC means that some contractors (so called permtractors) may be able to claim holiday pay from the client they are working for.

Contractor Holiday Pay

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?