More than a million temporary workers could be thousands of pounds better off under plans to tighten up holiday pay rules.
At the moment, many temps are missing out on holiday pay despite being entitled to it, according to campaigners, because they don't know they can get it. The plans have been heralded as "fantastic news", although it is not yet clear what the outcome of the proposals will be - or when new rules could come into effect.
Currently, temporary workers – including umbrella employees – typically receive holiday pay when using their annual leave entitlement. However, low awareness of rights and entitlements among these workers, including the right to claim holiday pay, means that many miss out on money they are owed.
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There are estimated to be around 1.65 million temporary workers in the UK as of March 2023 compared with just over 1.45 million in January 2020. The number of temporary workers in the UK had generally been climbing since 2019.
The change would mean that these workers automatically receive the holiday pay that they are entitled to on top of their salary - a system called 'rolled-up holiday pay. This would boost their earnings by 12.07% – which experts have hailed as a “life-changing” difference to temps.
Rolled-up holiday pay would see an employer pay its temporary workers the extra money on top of their hourly rate, rather than the worker having to claim for it when taking...
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