In 2022 The REC called for the government to consult on the fallout – not least because the ruling means part-year workers are entitled to a larger annual paid holiday entitlement than part-time workers who work the same number of hours across the year but work fewer hours each week consistently across the year. The ruling has caused anxiety and confusion among employers, workers, business representative groups.
In a submission to the government, the REC backs the Department for Business and Trade move to put the 12.07% holiday pay calculation method into legislation. REC believes the 12.07% method should apply to all workers (as defined in the Working Time Regulations 1998) whose working patterns mean that there is no simple way to accurately calculate their holiday entitlement.
The article can be found here.
ePayMe urges The REC to move a step forward with this and look at a varying percentage for those workers in sectors such as education, who don’t necessarily work the same amount of hour/days/weeks. We have for many years, operated two Contracts with differing percentages for holiday pay. We have often had an uphill struggle with competitive Minimum Processing Rates because those working in education are on a higher percentage for holiday than the standard 12.07%.
We have provided a vast amount of information and documentation in relation to this and we are pleased that the REC are now looking at this too. This will put all umbrella companies that apply the correct percentage of pay, on an equal playing field.
If you have not read one of our many blogs on the subject, you can read one here.
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