With last years Harper V Brazel case hitting the headlines, the Government is now consulting on holiday pay entitlement for irregular hour workers.
It wants to hear from agency staff, contractors and umbrella companies on how the entitlement is totted up, along with making some proposals of their own.
Because of the result of the Harper V Brazel judgement, part-year workers are now entitled to a larger holiday entitlement than part-time workers, who work the same total number of hours across the year. This is clearly a disparity that they are looking to address this, so that entitlement is proportionate to the time spent working.
Government proposals would and must ensure consistency.
ePayMe has always utilised higher holiday percentages for those in the Education sector, at 14.36%. These workers would be working less than 52 weeks a year, with an even higher percentage applied to those in the private education sector, working less than 39 weeks.
We hope that this consultation will bring in standardised percentages so that we do not have to face the consistent up hill struggle. Other providers that stipulate a 12.07% holiday percentage across the board can be more competitive with their uplifted umbrella (assignment) rates. Whilst these look like a good incentive to reduce the workers rate, this is not correct or fair and could lead to issues for the agency.
We have published many blogs on the subject and one interesting article, if you have not read it yet, is surrounding the calculating holiday pay at 12.07%, and can be found here.
There is an article surrounding the Government consultation, by ContractorUK, you can read it in full here.
Here is a link to the consultation document.
If the providers you work with are not offering different holiday percentages for your workers who work in education or you are looking for a compliant provider that is accredited by PP and is a business partner of both The REC and APSCo, please contact us today ☎️ 01252 863700 or email us