Agency and Rolled Up Holiday Pay

[RoundTheBend]

A relative of mine was told by an agency that the salary for a 12 week contract was pro rata £27k. We have since found out that they are doing this as £13.21 per hour and £1.59 holiday pay. I thought "rolled up" holiday pay was now illegal.

If it is legal, then do they deduct the holiday pay until you want to use it or is it paid to you every week and it is up to you to "save" it.

I forgot to add, she will be working 35 hours a week, so in my calculations that will equate to £24k pro rata.

My holiday pay is 'rolled up' too. The law changed a few years ago but it is still legal as long as it is paid a month in hand - so the holiday pay I've accrued in August will be paid with Septembers wages of that makes sense. It is up to me to save the money for holidays - however as the amount of holiday pay I earn each month is about equal to the tax I pay I tend to just use it to cover my tax and then treat my holidays as unpaid. Hope that helps

The holiday pay is paid to me monthly with my wages. I should have said - sorry! It does appear on my pay slip on a separate column to my wages though.

How can you work out pro rata unless you know how many hours is classed as full time there?

That equates to full time being 39.5 hours, give or take.

Thank you Birdlet.

I have said to her that surely she can go 12 weeks without a holiday bless her and even to work more hours than the 35 (which there will be opportunity) and then the take home pay will be a bit more.

I just felt miffed on her behalf - told one salary and then you find it's not quite as it seemed, a bit misleading by the agency.

I really can't see how you can say they've mislead you.

Misled

She feels the agency did mislead her. They told her the salary would be pro-rata £27k which for a 35 hr week would equate to approximately £14.83 per hr. Under normal working conditions, you are paid your normal salary as if you were there when you take a holiday. No one told her she would have to have her holiday deducted from the hourly rate.

35 hrs @ 13.21 per hour = £462.35 per week x 52 weeks = £24042 pa
35 hrs @ 14.80 per hour = £518.00 per week x 52 weeks = £26,936 pa

That's a difference of approx. £2894.

Is the agency Reed by any chance?

No Boogers - one in London that I have never heard of but the contract she will be having is with a major company. I only hope that after the 12 weeks the company offer her a permanent job.

But as I said (twice) you obviously don't know what the full timers there do. If they do 39.5 hours then that's correct. What she does is irrelevant to their definition of full time. Di you understand what pro rata means?

Tiggery, you are just being antagonistic and not helping at all so please can you move away from this conversation. Thank you.

He's right though what is it pro-rata of? It could be 39 or 40 hours.... more likely than 35 in London I'd have thought!

Ok, I'll leave you to your misconception. Just stop saying people have been misled when you obviously don't have a bloody clue what you're talking about. And I wasn't trying to antagonistic, just explain a very simple concept who's seems to be beyond your grasp.

Stereo - I'm a she

THAT seems to be.