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Holiday Leave

Who is entitled to Statutory Leave?

All PAYE Agency Workers are entitled to paid annual leave.

Are Limited Company Contractors Entitled to Paid Leave?

Where Limited Companies supply individuals to work for the Client, the Limited Company, and not the employment business, will be liable to pay the individual for the annual leave they are entitled to.

What is the Current Entitlement?

The current statutory leave per annum for full-time workers 5.6 weeks. This amount can include the worker’s entitlement for taking public and bank holidays, these days may count towards the minimum holiday entitlement.

Are there any Enhanced Entitlements under the Agency Worker Regulations?

Under Regulation 5 of the AWR, a temporary worker who is a qualifying agency worker that has completed the 12 week qualifying period, working for the same hirer in the same role will be entitled to equal treatment in relation to basic working and employment conditions, which include annual leave and holiday pay.

This means they may become entitled to more holiday than the statutory minimum of 5.6 weeks. For example, if the client provides their own direct recruits or comparable employee with 33 days of holiday, then a qualifying agency worker will become entitled to 33 days of holiday upon completing the 12 week qualifying period.

When Does a Leave Year Start?

A worker’s leave year begins on whichever date is set out in a “relevant agreement”, ie the Contract for Services.

When Does Statutory Leave Accrue?

Agency Workers will accrue holiday pay based on the number of hours they actually work, and will only be entitled to be paid for holidays, which they have accrued to date.

If the Agency Worker returns to work after taking leave, they will continue to accrue holiday until termination of the Contract for Services.

On termination of the Contract for Services, the Employment Business should pay the Agency Worker for any leave accrued but not taken at the date of termination.

Can Holiday Pay be Paid ‘Rolled Up’ as an Addition to the Hourly Rate?

The system of ‘rolled-up holiday pay’ or paying an amount on account of holiday pay on top of an agreed hourly rate, has been ruled unlawful by the European Court of Justice (ECJ).

How Much Notice Does a Worker Need to Give to Take Leave?

When a worker wishes to take paid annual leave the Working Time Regulations 1998 provide that they must give the employer notice that is at least twice as long as the period of leave which they wish to take.

Can Holiday Entitlement be Carried Over to the Next Leave Year?

The statutory annual leave must be taken in the leave year in respect of which it is due and may not be carried over from one leave year to the next.

The Agency Worker is responsible for ensuring that all holiday is requested and taken within that leave year.