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Gary Townley
Member - 6 posts
What is the legal requirement when calculating Angency pay. Would it be legal not to allow agency staff to accrue holiday, whilst currently on holiday.
Example
The system accrues Holiday Pay for each Temp at a rate of 10.17% of their basic wages.
10.17% is arrived at as follows:
4.8 weeks paid leave
52 weeks - 4.8 weeks = 47.2 weeks
4.8 / 47.2 x 100 = 10.17
They accrue approx 0.5 days leave for each week (or part thereof) that they work.
Holiday pay is only accrued on Basic hours. Other payments such as overtime and holiday pay itself are not included in the accrual.
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David Price
Member - 84 posts
Why are you having to caculate agency pay? Surely if you require an agency worker the agency they come from will tell you the rate that you are expected to pay them, if you work for an agency then you will have been told the rate for the job before the contract commenced.
Furthermore why would you not want Agency staff to accrue holiday? They are intitled to it just as much as you are, and if you work for an agency who are trying to stop you obtaining holiday then you should read their very well hidden small print before you sign.
Your email reads like you are against Agency Staff getting what they are intitled to, and it seems to surgest that you object to them being paid a higher rate and being intitled to annual leave. If you are against agency staff so much, why not get a perminant member of staff which will cost you a lot more in the long run.
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Gary Townley
Member - 6 posts
You have missed the question. Should agency staff still accrue holiday pay during the period they are on holiday? I have now worked out that despite the holiday pay not being the same as an average week/days pay, in the long run the agency staff would still be paid the same as someone with normal holiday intitlement, the way it was calculated and the fact that a full days pay was not the same as a days holiday pay made me questioned whether this was the norm and indeed legal.
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Justin Bricknell
Member - 1 post
Hi Gary - just to add my two penneth, I work for an agency and this was a question brought up by members of staff in my accounts team.
After checking with our legal team and also our software compnay, I was told that agency workers should ONLY accrue holiday on the hours/days they work.
With that in mind, your calculations in your first post are correct and although a worker will accrue holiday at a rate of 0.508 days for every week worked, the fact that they are only accruing holiday on 47.2 weeks means that they accrue a total of 24 days over a 52 week period.
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James Fairchild
Member - 292 posts
I think I understand the question.... he's saying that each week he earns (for the sake of argument) three hours of holiday pay.
The question is whether, if he takes a fortnight's vacation, he has effectively earned 6 hours of additional entitlement. The answer is no.
Do note that rolled-up holiday pay is now illegal, and holiday pay must be paid when the leave is taken.
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