Employer takes money for holidays

RakarthIX

I have a friend who has just started work for a home care agency. She gets paid minimum wage, is expected to work up to 70 hours a week and they deduct 70p an hour from her wage to pay for her own holiday entitlement as they say they don't have to provide holiday pay due to the type of business they are. They also only pay 18p per mile petrol and tax that as well. Can anyone let me know how much of this is actually legal?

MacsReturns

I'm no expert, but that sounds all wrong to me. I think your friend needs some proper advice. "The type of business they are" sounds like scheming, devious cheapskates to me. I've never heard of holiday pay being taken out of anyone's basic before, and I'm sure that holiday allowance is a statutory right these days. I wonder what their last slave died of?

withabix

I would say none of it is legal.

Torry_Quine

Everyone is entitled to paid holidays. Its 28 days including public holidays.

MissSarah1972

What do you mean they do not have to pay her holiday due to the type of business they are?

katsu

She can claim the additional mileage relief from HMRC to make it up to their current rate.

Seadogs_2010

Ring ACAS and explain the situation. Sounds all very wrong to me. You have to be so careful with employment agencies. A lot do try and rip people off

paddedjohn

The employers are taking the p1ss, apart from the fact that your friend is entitled to paid holidays they are also being paid less than the minimum wage.

Wail

I am also concerned about the whole lot.

http://www.acas.org.uk/index.aspx?articleid=1410

Call the Helpline on 08457 47 47 47.
Monday-Friday, 8am-8pm and Saturday, 9am-1pm

RakarthIX

Not sure but that is what they told her. This isn't a poxy little business she works for it is a nationwide homecare company which is why it amazes me that they get away with doing what they do

WestonDave

Re the mileage - employers can choose to pay what they want, and if they don't have a dispensation from HMRC to pay it without deducting tax then they have to deduct tax. However if she keeps a record of her mileage she can claim a deduction of miles x 45p against her taxable income which should get her 20% of that amount back (i.e. the tax on it - this assumes she isn't getting anything tax free).

Re the holiday pay - there are some wierd provisions for agencies regarding holiday pay on the basis that if you only work for sporadic periods it can be hard to give paid holiday. However I would have thought that would mean giving 70p per hour not taking it away. If you assume 260 week days in a year, and minimum holiday entitlement is 28 days, 28/260x6.19 (minimum wage) gives an uplift of 66p per hour to effectively pay for holiday pay. Sounds like something has got confused somewhere!