Holiday pay

[MrsRobinson78]

I employ my nanny through an agency, however we found her ourselves and wanted to employ her directly but she has worked for the agency for a while and wanted to stay with them for at least 6 months I think as a favour to the agency owner. Which was fine – we see it as a long probation period. After the 6 months we will be employing her directly. However I have just found out that the agency is not paying my nanny proper holiday pay. I am entitled to 2 weeks within the 6 month period at half fees. Bank Holidays I pay the full rate.

My understanding is that legally the agency should pay the nanny full pay for holidays(based on the previous 12 weeks pay) and should also pay her full on BH. From what my nanny has said she is not being paid at all for BH, and receives a reduced rate for the holiday period. WWYD? I don’t know whether to get involved as they are friends, however I don’t feel at all comfortable effectively employing a company which treats its workers illegally?

There is no statutory entitlement in the UK to paid time off on a bank holiday. So, are you in the UK?

Nanny agencies do not usually employ the nanny, if they did then it may be a zero hour contract so holiday pay at casual worker rate 12.07% Are you sure they are not doing that?

I would avoid being involved in how the agency runs their business. I would keep offering the nanny the role directly and you could emphasise the benefit of paid holiday and other benefits you may be providing as a permanent employer.

Thanks Nannynick - yes I am in the UK. The contract with the agency states that I must pay full fees on BH but that no nanny will be provided. I (obviously naively) thought this meant the nanny would actually be paid as usual for that day.

I don't know what contract my nanny has with her agency, but even if it is zero hours then they do still accrue A/L? At a rate of 12.07% I've calculated that my nanny should have accrued around 70 hours A/L which would cover the holiday I am taking but I know she is NOT being paid full for this.

I'm also pretty p1ssed off as I advised the agency that I didn't need the nanny for a couple of days in June but I didn't take it at half fees as was saving my holiday half fees for august. I wish I hadn't told the agency now as I'm pretty sure she didn't pay the nanny and pocketed the extra herself.

Yes my nanny is happy to be employed by us directly, I'm just rather annoyed with the agency and we've still a couple of months to run with them.