Can an agency "legally" withold holiday pay?

sujman

I am aware some agencies have provisions in their contracts where they state the holiday year and if the agency worker does not take their entitlement, they forfeit the holiday pay.

For a legal point of view, is that actually allowed?

Anyone have any links to the relevant governement website showing this? I've tried looking myself and can't find anything.

bluetownbarry

Totally legal . Moral; use it or lose it. If they have not allowed you to take any leave, that's a different story. Also might be worth checking to see if they allow you to carry any days over. How many days are you talking about?

RedSoleShoes

sujman wrote: »

I am aware some agencies have provisions in their contracts where they state the holiday year and if the agency worker does not take their entitlement, they forfeit the holiday pay.

Which agency/s are you talking about?? I know that a lot of agencies are downright underhand with the way they work but I have to say that holiday pay is the only thing I have never had a problem with when it comes to agencies!:D

I have always been paid my due holiday pay, either during or after the end of a contract.

Considering there is a legal minimum requirement for paid annual leave (including temp workers) I don't see how any agency could write a clause that prevents them from paying this.

LittleVoice

sujman wrote: »

I am aware some agencies have provisions in their contracts where they state the holiday year and if the agency worker does not take their entitlement, they forfeit the holiday pay.
All agencies should have something like that - because it is what is required by the WTRs - holiday must be taken and not paid for if not taken unless the worker's employment is terminated in which case accrued holiday can be paid with the last pay.

For a legal point of view, is that actually allowed? Yes

Anyone have any links to the relevant governement website showing this? I've tried looking myself and can't find anything.

try http://www.legislation.gov.uk/uksi/1998/1833/contents/made

................

paddedjohn

bluetownbarry wrote: »

Totally legal . Moral; use it or lose it. If they have not allowed you to take any leave, that's a different story. Also might be worth checking to see if they allow you to carry any days over. How many days are you talking about?

you can only carry over days if you have already had at least your minimum entitlement. ie you get 30 days and you have used 28 then you can carry over 2 days (if your contract agrees)

MrsManda

http://www.direct.gov.uk/en/Employment/Employees/Timeoffandholidays/DG_171945

Have a look at this link

sujman

Thanks for all the replies and links - which I will look through thoroughly shortly.

I am not actually an agency worker so its not about me. I was having a debate with the agency management where I work and he was telling me he was busy telling his workers the holiday year is coming to an end and they needed to take it or lose it.

I questioned if that was actually legal, never mind if a contract was signed to that effect. He wasn't actually sure himself - just following head office instructions. So I was trying to find out myself what the position is.

Got me thinking from another angle, in that the company I work for pays the agency a fixed rate per hour, which includes provision for holiday, and if the worker forfeits the holiday pay, then in my opinion, the forfeited money should come back to my company and not the agencies bottom line. That way, the agency is not "incentivised" in anyway to not pay holiday over, even if legally entitled to.

bluetownbarry

sujman wrote: »

Thanks for all the replies and links - which I will look through thoroughly shortly.

I am not actually an agency worker so its not about me. I was having a debate with the agency management where I work and he was telling me he was busy telling his workers the holiday year is coming to an end and they needed to take it or lose it.

I questioned if that was actually legal, never mind if a contract was signed to that effect. He wasn't actually sure himself - just following head office instructions. So I was trying to find out myself what the position is.

Got me thinking from another angle, in that the company I work for pays the agency a fixed rate per hour, which includes provision for holiday, and if the worker forfeits the holiday pay, then in my opinion, the forfeited money should come back to my company and not the agencies bottom line. That way, the agency is not "incentivised" in anyway to not pay holiday over, even if legally entitled to.

Interesting point but I don't see it's worth persuing. I also utilise agency workers - our contract with the agency has something similar to if the worker takes leave, they will provide another person to fill their place at no cost to us - therefore the it's sort of cost nuetral if that makes sense (it's late lol!)

Mudd14

sujman wrote: »

Got me thinking from another angle, in that the company I work for pays the agency a fixed rate per hour, which includes provision for holiday, and if the worker forfeits the holiday pay, then in my opinion, the forfeited money should come back to my company and not the agencies bottom line. That way, the agency is not "incentivised" in anyway to not pay holiday over, even if legally entitled to.

Whilst I can see your point, and it is a good one, it is your choice to use an agency and pay the amount they are asking. If you dont wish to pay a price that includes the markup on holiday dont use them, but you will find it hard to find an agency that doesnt include holiday in their price.

scooby088

It was the same when i was at my last place of work, if you didn't take your holiday in the holiday year then it wouldn't be carried over which as i see it is totally fair really.

sujman

bluetownbarry wrote: »

Interesting point but I don't see it's worth persuing. I also utilise agency workers - our contract with the agency has something similar to if the worker takes leave, they will provide another person to fill their place at no cost to us - therefore the it's sort of cost nuetral if that makes sense (it's late lol!)

Sure, I can see an agency providing those kinds of terms, I would suppose though their margin charge would be relatively higher to offset the cost of a "free" replacement.