The UK’s temporary workforce of 1.6 million people could soon see a pay boost “worth thousands” of pounds.
This comes following Government proposals to introduce ‘rolled-up’ holiday pay as an option for all workers.
Rolled-up holiday pay is a system where a worker receives an additional amount or supplement with every payslip to cover their holiday pay, as opposed to receiving holiday pay only when they take annual leave.
By not rolling up holiday pay, thousands of temporary workers have their holiday pay unfairly withheld – meaning they potentially lose out on thousands of pounds every year.
The reforms form part of the Government’s wider plans to remove “obsolete” and “burdensome” EU rules from UK law.
Martin McTague, the national chair for the Federation of Small Businesses (FSB) National Chair said: “We welcome these sensible changes, striking a balance for workers while offering clarity for employers. It’s good to see the Government cutting through excessive burdens without losing the benefits of regulations.
“We’re eager to see a system that’s clear-cut, cost-effective and easy for small businesses to roll out, so these announcements are a crucial step forward.”
Umbrella company compliance specialist, PayePass, has welcomed the news. CEO Julia Kermode, commented: “This is huge news. By allowing rolled-up holiday pay, the UK’s growing number of temps and irregular-hour workers will receive what’s legally theirs, which could be worth thousands for every worker.
“Temporary workers who qualify will receive holiday pay when they’re paid their wages, which means they’re guaranteed to receive it.
“All too often, these workers don’t claim holiday – partly due to the fact that they don’t know they’re entitled to it and partly due to the holiday pay being unfairly withheld from them. It’s no exaggeration to say that hundreds of millions of pounds of holiday pay have been left unclaimed over the years.”
Ms Kermode added: “But now there are no excuses for temps to receive what’s lawfully theirs. Rolled-up holiday pay will help hundreds of thousands of workers pay their bills at a very difficult time.
“It goes without saying that the move to make this lawful will also stop those dodgy businesses from deliberately withholding it from their workers.”
She noted that while the Government has stopped short of announcing a timeline for the introduction of rolled-up holiday pay, “all eyes are on the Budget this month”, and she hopes the Chancellor will set a date in stone.
Chancellor Jeremy Hunt will announce the Autumn Statement on November 22.
