I'm not benefiting from increased holiday entitlement

shootme

Hi. Just wondering what peoples opinions are on this. Last year I completed a temporary assignment. I had an hourly rate which was paid to me as I worked it (£9.49) and an hourly amount that was used to accrue holiday (96p). Therefore my "premium" rate was £10.45.

I was asked to go back again this year and it was agreed that I would get the same rate as last year. I didn't realise until now that the statutory holiday entitlement has increased to 28 days. I have just checked and it is my "premium" rate which has been kept the same which means that they now take £1.12 to accrue for holiday to give me the extra 4 days. I would say that this is a decrease in pay. What do others think?

PasturesNew

Well, while it seems like a reduction in your rate from many angles, it is in fact a new contract. A new contract where the client pays the same, the agency gets the same and yes, you lose out. It won't be illegal as it's a new booking that you could refuse. On the other hand, it's worthwhile giving the agency a call and asking them to up the rate because you've spotted their little sleight of hand and you were "asked" to go back so the agency and the client both know they're getting a reliable worker who knows the ropes.

zenmaster

I don't see it as a reduction. You are getting 4 days extra holiday (or, I presume, payment in lieu). The extra deduction is still yours at the end of the day, therefore you end up with the same amount of money.

If you were working permanently on a salary of say £20k and they added 4 days to your holiday entitlement you would still be paid £20k. You would not expect a pay rise to cover the extra 4 days holiday.

shootme

Pasturesnew that sounds like a plan I'll have a word with them and see what they say.

zenmaster - yes I'm getting the same in total for the contract but I should really be getting extra. If I was on a permanenant salary as you say I would be getting extra - not money but holiday. I can get 4 days extra holiday now but only by paying more out of what I get on a weekly basis i.e. I'm getting £9.32 an hour instead of £9.49.

System

do you work bank holidays ? this counts as part of your holiday entitlement.

liney

zenmaster wrote: »

I don't see it as a reduction. You are getting 4 days extra holiday (or, I presume, payment in lieu). The extra deduction is still yours at the end of the day, therefore you end up with the same amount of money.

If you were working permanently on a salary of say £20k and they added 4 days to your holiday entitlement you would still be paid £20k. You would not expect a pay rise to cover the extra 4 days holiday.

Thanked by accident: s/he is now earning less money per year because of the holiday increase.

40 hours weekly at the higher rate was 19739.20
40 hours at the lower rate is 19385.60

The introduction of "extra" holidays now means s/he is £350 per year worse off, but accrues more holiday. The employer should absorb the cost, not the employee.

However, as a temp, you were offered a new contract and accepted so I don't think theres much you can do about it, apart from "enquire".

shootme

Good point liney thank you. I will "enquire" tomorrow.

zenmaster

liney wrote: »

Thanked by accident: s/he is now earning less money per year because of the holiday increase.

40 hours weekly at the higher rate was 19739.20
40 hours at the lower rate is 19385.60

The introduction of "extra" holidays now means s/he is £350 per year worse off, but accrues more holiday. The employer should absorb the cost, not the employee.

However, as a temp, you were offered a new contract and accepted so I don't think theres much you can do about it, apart from "enquire".

No she's not!

Your sums are correct, but incomplete.

40 hours weekly at the higher rate was 19739.20 (working pay) + 1996.80 (holiday pay) = 21736.00 (total)
40 hours at the lower rate is 19385.60 (working pay) + 2329.60 (holiday pay) = 21736.00 (total)

The agency do not keep the holiday fund but give it back when holiday is taken or when the employee leaves.

The employer is absorbing the cost by paying the same amount for 4 days less work.

zenmaster

shootme wrote: »

zenmaster - yes I'm getting the same in total for the contract but I should really be getting extra. If I was on a permanenant salary as you say I would be getting extra - not money but holiday. I can get 4 days extra holiday now but only by paying more out of what I get on a weekly basis i.e. I'm getting £9.32 an hour instead of £9.49.

Yes but you will get it back.

Arguably you are losing out on interest on the extra weekly cash in the bank but in practice this would only amount to a couple of £ over a year.

CCFC_80

Temporary workers are no better off now with agencies giving you 28 days holiday pay per year then 10 years ago when workers with agencies got no holiday pay. What they give you in one hand they take it away in another.
In year 2000 (yes nearly 10 years ago) I was earning then £6.50 per hour with no holiday pay. Nowadays it is difficult to find a similar position matching that hourly rate with agencies taking into account inflation over 10 years.
I was financially better off when agencies did not give you holiday pay !!
With the prospect of a change of government shortly, temporary workers could even be worse off if they scrap the minimum wage.

liney

zenmaster wrote: »

Yes but you will get it back.

Arguably you are losing out on interest on the extra weekly cash in the bank but in practice this would only amount to a couple of £ over a year.

9.32ph x 40 hours x 52 weeks = 19385.60
9.49ph x 40 hours x 52 weeks = 19739.20

You can ignore the actual holiday pay, because ultimate s/he gets the same rate of pay for holidays which is why the hourly figure has changed in order to pay more holidays.

If you want to be very precise:

9.32 x 40 x 46.40 weeks (worked) = 17297.92
9.32 x 5.6 weeks (holiday) = 2087.68 (current entitlement)

total is the same = 19385.60

And then

9.49 x 40 x 47.20 (worked) = 17917.12
9.49 x 40 x 4.8 (holiday) = 1822.08 (old entitlement)

Again, the total as above = 19739.20



The OP is physically going to receive less money yearly, but have an additional 4 days holiday. This means s/he is paying for the holiday, not the employer. As i pointed out, as they have accepted the terms for what they are, i feel that there isn't much to be done, but they are correct in thinking that they actually haven't recieved a "benefit" but bought the extra entitlement from their pay.

This measure will have been brought into place to avoid increasing the charge rate to the Client, but i'm unsure how they would have got around this with the temps who were currently working at the time of the Statutory Leave increase.