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Home » FAQs » 4. How is Holiday Pay Calculated for Agency Workers?

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4. How is Holiday Pay Calculated for Agency Workers?

Boyce Recruitment
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4. How is Holiday Pay Calculated for Agency Workers?

At Boyce Recruitment we calculate the holiday entitlement for temporary workers as an accrual of the hours worked. This is the best way to calculate the holiday entitlement as temporary workers work on a casual basis or have irregular hours.

The holiday entitlement is 5.6 weeks including Bank Holidays prorated over the year, which is equivalent to 12.07 per cent of hours worked over a year. Boyce Recruitment Holiday Year runs from 1st January to 31st December each year.

The 12.07 per cent figure is 5.6 weeks’ holiday, divided by 46.4 weeks (being 52 weeks – 5.6 weeks). The 5.6 weeks are excluded from the calculation as the worker would not be at work during those 5.6 weeks in order to accrue annual leave.

Holiday pay it is accrued every week at rate of 12.07% on your weekly basic pay only which is added to your “Holiday Fund c/f” this figure is prorated depending on the hours or days you work.

In addition you will see that every week worked ½ days is added to the remaining days on your payslip.

Example:

  1. If your work 5 days and your basic pay is £125 per day, you would accumulate (= 125 X 12.07% X 5 days) £75.44 which goes into your holiday fund and ½ day holiday added to your days remaining.
  2. If you work less than 5 days the calculation will be based on the number of days worked but the days accrued still be the same. So if your work 3 days  the calculation will be as follows:

£125 x 12.07% x 3 = £45.26 and ½ day added to your days remaining. .

When you request holiday what we calculate the amount payable by dividing the total amount on your “Holiday Fund C/f” by the numbers of days you have accumulated or “Remaining Days”. So the amount paid will vary depending on how much you have accumulated and if you have worked 5 days or less.

This how you will see this on your payslip

The Agency Workers Regulations (AWR) gives agency workers the entitlement to the same or no less favourable treatment as comparable employees with respect to basic employment and working conditions, such as pay and annual leave, if and when you complete a qualifying period of 12 weeks in a particular booking, then the extra holiday element of any additional holiday pay (if any) will be shown as a separate line on you payslip under “Payments”:

You always need to confirm the holiday with your manager first and notify us of the days you are requesting as holiday by email at: payroll@boycerecruitment.co.uk

Please note that if you do not work some days and have not notified us or requested it as holiday, we will not automatically process it.

We cannot pay holiday in lieu, Holiday pay should be paid for the time when annual leave is taken or at the end of the booking if your booking finished before of the end of the leave year (1st Jan-31st Dec), this is a statutory requirement which aims to protect your rights and ensure you have the opportunity to take days off.  An employer cannot include an amount for holiday pay in the hourly rate (known as ‘rolled-up holiday pay’) the only amount we are allowed to roll up is the AWR element of extra holiday entitlement as above.

You also need to make sure that you take your holidays during the leave year (1st January to 31st December)  as we do not carry forward any unused holiday pay into the next  leave year and any holiday funds not used will be lost. We will always monitor the amount of holiday you have accumulated and notify you to take it as we are approaching the end of the year.

Previous article: 2. Week 12 Entitlements
 
Next article: 1. What are my rights as an agency worker? Day 1 Rights

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by Jonathan Crawford on March 12th, 2020
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31 – 35 Kirby Street London, EC1N 8TE

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