Ongoing Holiday Payment Help Please

123imp

Hi, I was hoping to get some advice regarding holiday pay.

As a student I usually work part time in the summer on zero hour contracts, I work for 3 different companies. I've noticed that all 3 companies pay me the standard £6.31 per hour, and that 2 of the companies also pay £0.7616 per hour, in addition to the basic salary, as ongoing holiday payment. That means that with these 2 companies my wage sits at £7.07 per hour, which is what I am paid.

The other company, however, pay me the standard £6.31 per hour only, without mention of any holiday payment. I've been working with this company longer than I have with the others, for 4 years now, and they've never added holiday pay. I'd like to know whether the ongoing holiday payment is being added by the 2 companies because they're being nice, or whether it is something I am entitled to and the third company should be paying me. If the latter is the case, how does one go about claiming holiday payment, is it like claiming back taxes at the end of the year, and how far back can I claim?

Thanks in advance.

Savvy_Sue

The two companies paying you extra are giving you 'rolled up' holiday pay, which is less common than it used to be.

The other company should be expecting you to book leave which they will pay you for, because you are entitled to a minimum of 5.6 weeks leave - this is pro rata to the days / hours you work, but if you were doing a f/t job then it would be 28 days, including the bank holidays.

If you haven't taken it until now, then they almost certainly won't allow you to claim back for previous years. And they may feign surprise that those on zero hours contracts are entitled to paid leave. But you could work out what you're due (multiply your hours by 12.07%) and ask for it at the end of the summer - they may not want you back next year even though you are entitled to it.

123imp

Thanks very much for your reply. I feel better knowing how it works, and that I must claim it back from the company themselves. I may consider sending them a letter asking for the extra couple of hundred at the end of the summer, as am not sure I want to work with them next year anyway.

Podge52

Savvy_Sue wrote: »

The two companies paying you extra are giving you 'rolled up' holiday pay, which is less common than it used to be.

The other company should be expecting you to book leave which they will pay you for, because you are entitled to a minimum of 5.6 weeks leave - this is pro rata to the days / hours you work, but if you were doing a f/t job then it would be 28 days, including the bank holidays.

If you haven't taken it until now, then they almost certainly won't allow you to claim back for previous years. And they may feign surprise that those on zero hours contracts are entitled to paid leave. But you could work out what you're due (multiply your hours by 12.07%) and ask for it at the end of the summer - they may not want you back next year even though you are entitled to it.

The reason being, it's illegal.

LittleVoice

123imp wrote: »

Thanks very much for your reply. I feel better knowing how it works, and that I must claim it back from the company themselves. I may consider sending them a letter asking for the extra couple of hundred at the end of the summer, as am not sure I want to work with them next year anyway.

You need to be aware of "holiday years" - whether a standard company year or a personal one.

If you are on a true zero hours contract with this company - that is you are still technically an employee during the periods that you are not actually working any hours - then they may say your holiday year is their company holiday year. This could be, for example, 1 August to 31 July. If you waited until the end of the summer to claim your paid leave, then they would say you were out of time to claim for the year ended 31 July.

What do your written particulars of employment say about holidays? If you were never given any (unlawful in itself if you have been employed for more than two months), then your holiday year will run from the date you first began working for them.

Do they deduct tax and NI from any of your pay? Do they send you a P60 after the tax year ends? If they employed you last summer and deducted tax/NI and you were still on their books on 5 April then you should have received a P60 for 2013-14 by now. Or do they deduct tax/NI and give you a P45 after the end of the summer?

LittleVoice

Podge52 wrote: »

The reason being, it's illegal.

Debatable whether or not it is unlawful. The two companies mentioned by the OP who have given a separate amount for the holiday element of pay may be acting lawfully.

Podge52

You have a point but only because the ECJ fudged their own ruling. The true test would be at an employment tribunal.

123imp

LittleVoice wrote: »

You need to be aware of "holiday years" - whether a standard company year or a personal one.

If you are on a true zero hours contract with this company - that is you are still technically an employee during the periods that you are not actually working any hours - then they may say your holiday year is their company holiday year. This could be, for example, 1 August to 31 July. If you waited until the end of the summer to claim your paid leave, then they would say you were out of time to claim for the year ended 31 July.

What do your written particulars of employment say about holidays? If you were never given any (unlawful in itself if you have been employed for more than two months), then your holiday year will run from the date you first began working for them.

Do they deduct tax and NI from any of your pay? Do they send you a P60 after the tax year ends? If they employed you last summer and deducted tax/NI and you were still on their books on 5 April then you should have received a P60 for 2013-14 by now. Or do they deduct tax/NI and give you a P45 after the end of the summer?

They don't actually provide me with a P45 or P60 unless I specifically request one, and they have made this clear to all employees. They never used to supply us with payslips either, until last year when they began sending them via email at the end of the summer season (September/October). The other 2 companies make everything much clearer, one pays per job about 2 weeks after completion and immediately supplies a payslip via post. The other supplies payslips once per month, as you are paid, via payroo.

I'm yet to see any of my payslips from this year so not sure whether Tax/NI has been deducted. Last year they deducted both tax and NI, which I now need to claim back as I earned way under the threshold for both. Whilst on the subject on tax, could you also advise me on how long I have to claim back from the last tax year, and whether I can still claim from 2 years ago.

Thank you.

Undervalued

LittleVoice wrote: »

What do your written particulars of employment say about holidays? If you were never given any (unlawful in itself if you have been employed for more than two months),

Unlawful yes but also unactionable and unenforceable.

You can no longer make a claim about this on its own. You can tag it on to some other valid claim and you MIGHT (but almost certainly won't) get some additional compensation!

Savvy_Sue

Podge52 wrote: »

The reason being, it's illegal.

LittleVoice wrote: »

Debatable whether or not it is unlawful. The two companies mentioned by the OP who have given a separate amount for the holiday element of pay may be acting lawfully.

Agree with LV, there are situations in which it's allowable, but it does have to be shown as a separate item if it is being done that way.

Obviously with zero hours contracts it's MUCH easier to pay it as they go along. And what I used to do when I employed students was pay it to them at the end of each term / holiday.