Holiday Pay

1985dj

Is it illegal for an employer to include holiday pay in with your wages?

My girlfriend is employed with ProActive Personnel working for TK Maxx.

We recently moved house and had a weekend break away, so my girlfriend had booked a few days holiday. She hadnt been working there long enough to accrue all the days she needed, which she knew. But we were expecting her to get something as she was now in her fifth week there.

The managers are now saying that they dont get holiday pay as such. There holiday pay is included in with the wages.

The hourly rate is £6.50 which is what was told she would start on. On the wage slip each week it shows holiday pay of £25.20 being taken out the wages and put back in again. She also pays employers national insurance as well as employees national insurance.

If you divide the £25.20 by the 36 hours per week that she works, works out at 70p per hour, take this off the £6.50 per hour then works out at £5.80 which is minimum wage.

She also has to pay a fee of £15 per week our of her wages for Backoffice. Also a Tax Enquiry Insurance at £1.84. (Divide both these figures by the hours she works equals £0.46) Take this off the hourly rate, which would now be £5.34. Less than minimum wage.

SarEl

From your description, I believe that the agency may be acting as an umbrella company - it is a common practice now and many agencies have found this loophole in the law. In such cases the person is actually self-employed, which means that she is not entitled to statutory leave (which is only for employees). It enables agencies to advertise jobs at what appears like a higher rate, but because the person is self-employed they "re-charge" you for your own NI and add holiday pay. It's a scam, but a legal one. If this is the case then there is nothing you can do as she is self-employed.

liney

If the agency has a Gang Masters License, then they shouldn't be operating an Umberella scheme. You could always enquire with the GLA.
http://laws.gla.gov.uk/Default.aspx?Menu=Menu&Module=PublicRegister

David_Brent

I wouldn't imagine that the agency will have their own umbrella company - they most likely quoted the rate if she goes through an umbrella company, then they would send her the forms, web links etc to sign up to the umbrella company in order to get paid through them.

It's a bit cheeky really because agencies shouldn't really be refering you to umbrella companies - I also wouldn't be suprised if many of the consultants receive some nice referal cheques from the umbrealla companies for each candidate they get signed up through them. I think when I refered a friend when I was working through one I got a £50 cheque sent me..so you could imagine how many people they get signed up and amounts they make!

I wouldn't say this was a scam as nobody is getting scammed here - though the consultant should have made the process clearer and explained to her holiday pay is paid up front and not banked if self employed.

On the plus Plus side she can claim back expenses such as mileage to and from work and other associated expenses which she will receive tax releif for on her wages.

1984ReturnsForReal_2

They have got to seperate the hourly rate into 2 parts.

IE

37 Hours Standard Pay @ £10 per hour

37 Hours Holiday Pay @ £x per hour or 1 x Holiday Pay @ £x



If they do the above & the rate has always been stated as including holiday pay they are in the clear (i believe but I am 18 months out of date & but I doubt very much it has changed by test case since)

1984ReturnsForReal_2

liney wrote: »

If the agency has a Gang Masters License, then they shouldn't be operating an Umberella scheme. You could always enquire with the GLA.
http://laws.gla.gov.uk/Default.aspx?Menu=Menu&Module=PublicRegister

Gangmasters Licence
The mission of the Gangmasters Licencing Authority is to safeguard the welfare and interests of workers and to ensure that labour providers operate within the law.

It has been an offence for Gangmasters to operate without a licence since 1st October 2006 and an offence to for labour users to use an unlicensed gangmaster since 1st December 2006.

Proactive Personnel have held a licence since January 2006, and are required to renew this annually.

http://www.ppl-job.com/index.php?area=aboutus#Gangmasters


Are these them?

1985dj

Thankyou very much, that's a big help, although we're still a bit confused lol

Proactive Personnel is registered with the gangmasters licencing authority, and it is an umbrella company.... so what can we do now?

Claire applied for the job on the basis that it was £6.50 an hour (rising slightly after probationary period) as this is what was advertised. Not once was she told that she wouldnt be entitled to holiday pay or that she'd have to be in this umbrella scheme. She asked about it today and was told that she had chosen it.... yet nobody ever actually said "you can get minimum wage and holiday pay when you need it and only pay one lot of NI or you can go with the umbrella scheme where you pay much more for nothing in return" The advert doesn't say £5.80 OR £6.50 an hour either.

Surely there is something we can do about this??? Is it not fraud by false representation or something? She agreed to start working there because they neglected to mention what was really going to happen. It was all very misleading, and it's not just Claire either, a lot of the other workers have been asking whats going on but just get fobbed off.

1984ReturnsForReal_2

If you can find an advert with a pay rate on it at £6.50 per hour that doesn't mention holiday pay you have a case.

David_Brent

As suggested try and find the advert for the job and the quoted hourly rate if possible.

If not dig out your contracts between you and the agency and see what they say about the rate offered and if you signed it? Which I assume you would have.

I know you feel a bit cheated its not fair of them to do that to people it confuses people.

1985dj

http://jobs.thisisthesentinel.co.uk/cgi-bin/vacdetails.pl?selection=935862417&src=search_feat

1984ReturnsForReal_2

1985dj wrote: »

http://jobs.thisisthesentinel.co.uk/cgi-bin/vacdetails.pl?selection=935862417&src=search_feat

It is quite clear. She should get a minimum of £6.50 per hour & all holiday pay in addition.

Fashion Processing Associates

Job Type:PermanentLocation:Stoke-On-TrentSalary:£6.50 ph - £7.55 phStart Date:ASAPDuration:PermanentReference:140444-12094330631001

T K Maxx require 50 Fashion Processing Associates

£6.50 p.h. starting salary £7.00 p.h. after six weeks £7.55 p.h. after 12 week probation period.

T K Maxx is one of the largest Fashion & Homeware retailers in the UK with over 238 stores in the UK, Republic Of Ireland, Poland and Germany.

Due to our continued success and rapid growth we currently have permanent opportunities within our Stoke Processing Centre for 100 Fashion Processing Associates.

Duties to include; assisting in the process and flow of merchandise through the processing centre, in required quantities, to an acceptable level of quality and efficiency.

Also to ensure good work attitudes, atmosphere and communication to maximise productivity.

Ideal candidates will have a good work history, excellent work ethics and be able to work 06:00 - 15:00 and 15:00 - 00:00 on a 7 day rotating shift pattern.

References essential.

If you would like more details please email your CV to our recruitment team: [EMAIL="adresponse.stoke@proactivepersonnel.net"]adresponse.stoke@proactivepersonnel.net[/EMAIL]