Xact Placements Limited - professional recruitment services for the UK and Ireland
Contractor Holiday Pay:

Holiday pay regulations have changed under the new Working Time Regulations (WTR).

 

Under the WTR, holiday pay must now be shown on your payslip as a separate entry when you actually take annual leave rather than 'rolled up' within your pay rate every week / month.

 

It is your responsibility to check that your umbrella / limited company is compliant with WTR as the 'rolling up' of holiday pay is now unlawful. Click here for more info Opens in new window.

 

They should be setting aside part of your gross pay for holiday pay and only pay it to you when you physically take time off / finish your contract.

 

It is no longer lawful to simply add your holiday pay back on to your nett pay without you taking time off because it is the umbrella/limited company's obligation as your employer to ensure that you take off your statutory holiday entitlement (28 days for someone working five days a week). This will be pro-rata'd and accrued throughout your employment.

 

Any umbrella/limited company that is operating 'rolled-up holiday pay' is also therefore not acting compliantly as your employer with regards to statutory holiday entitlement.

 

Please discuss this matter with your umbrella company directly if you have any questions.

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