New to temping here and an agency are wanting me to start an assignment later this month. They’re saying the hourly rate includes holiday pay! I know I’m entitled to holiday pay but I’m confused as to why they’re not paying my holiday separately? I’d rather I accrue it as I go so I can get a ‘pot’ when I leave but they’re saying I need to go to a third party and sign up as self-employed or something
It's fairly standard for it to be included these days. Not always ideal I agree but they rely on you putting a small amount of it aside. If you ask for the breakdown you will know what amount per hour to allow yourself
You could use the hourly rate to calculate your annual pay which gives you better visibility of how much of your rate is holiday pay. For example if you calculate it out as an annual salary of 20K and you know 1.5k of that is holiday pay with your annual being 18 5k then you get a reasonable idea whether you are getting the salary level you're happy with for the work you are doing.
Inclusive holiday pay is very standard nowadays for agency work ever since holiday pay became a legal entitlement across the board.
It’s called rolled up holiday pay it’s not strictly speaking lawful as the law requires you should be paid for holiday when you take it. You can either ask them to pay it properly in compliance with the working time regulations or make sure you squirrel the extra 12.07% or whatever away.
There would be extra admin if it was paid separately and the best way to pay it when the duration of work is unknown is with your salary. This is very standard. You need to manage your finances to put the extra aside.
The temp agency, as your employer, will probably try to argue that since you are not always working you are having time off and that complies with WTR and that time is paid in your hourly rate. That’s a bit dodgy though if you work without any gaps and it also doesn’t reflect the spirit or intention of the WTR which is to give properly paid holiday away from work.
IME, WTD is one of those "great to have" laws that is designed to work in the best interests of the employee but the employer finds themselves happy to turn a blind eye to the fact their employee doesn't take all their holiday allocation, or works >48 hours a week over a consistent period.
Not saying it's right, but to some extent the employer (including agencies) make the assumption that the employee is a grown-up and is exercising their choice. The difficulty arises when the employer forces the employee to work excessive hours, or makes life difficulty for them to take annual leave within the year, due to excessive workloads. Then at least the employee can exercise their Right, - if they even know they have it!
When I first worked in recruitment (15 years ago ) we did not his but then a new law came in that meant we had to pay it separately if I remember rightly. I don't work in temp recruitment any longer (thank god) so not sure if it's changed again