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Plans to ‘roll up’ holiday pay could boost temps’ income by thousands every year



Temporary labour market experts have welcomed the news that the government intends to reduce the administrative burden and complexity of calculating holiday pay for temporary workers, by introducing rolled-up holiday pay – a move which could boost the average temp worker’s pay by thousands every year.

The proposal was one of a raft of announcements made as part of the government’s vision for smarter regulation after leaving the EU, found here. If holiday pay is rolled-up, it is paid at the same time as normal pay, as opposed to being paid when the worker takes a holiday. 

IWORK had previously responded to the government’s Holiday Entitlement Consultation, which closed in March, making it clear that rolled-up holiday pay is the only way temporary workers receive what’s rightfully theirs in holiday pay.

Julia Kermode, founder of IWORK – the body that champions temporary and independent workers – commented:

“This is fantastic news and something we’ve been urging the government to act on for some time. By rolling up holiday pay, temporary workers will receive it on top of their wages, which means they’re guaranteed to receive it. This move could boost the average temp’s pay packet by thousands every year. 

“As things stand, hundreds of millions of pounds of holiday pay has been left unclaimed because temps don’t realise they’re entitled to it. These workers aren’t helped by the handful of unscrupulous umbrella companies and recruitment agencies that go out of their way to make sure this statutory right isn’t claimed, before keeping it themselves. 

“At a time when every penny counts, the move to roll up holiday pay will help hundreds of thousands of temps make ends meet. It will also go a long way to stopping dodgy businesses from lining their pockets with it. Needless to say, the sooner this is introduced, the better.”

Fred Dures, the founder of specialist payroll auditor, PayePass, added:
“Lawfully rolling up holiday pay is long overdue. For far too long, temps have lost out when it comes to claiming holiday pay and worse off financially as a result. It’s no overstatement to say that it will prove life-changing for many of the UK’s temporary workers. 

“All too often, temps and contractors have no idea that they have a right to paid holiday. Some umbrella companies and recruitment agencies hide behind it being unlawful to pay holiday on top of wages, profiting when temps and contractors forget to claim their accrued holiday. Some make it deliberately difficult for their temps to claim accrued holiday, imposing complicated terms and deadlines so that they can profit instead of paying workers what they’re due.  

 “What’s needed now is an imminent roll out so that dodgy practices can stop, and contractors receive their full entitlement.”

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