OVER one million workers could be better off under holiday pay proposals announced this month.
The government plans to change how holiday pay is calculated.
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Currently, 1.6million temporary workers are missing out on holiday pay, despite being entitled to it.
This is because many don’t even know they’re entitled to it while some companies may hide the fact they’re eligible for it.
The latest proposals, if they come into effect, mean that employees will receive their holiday pay like permanent employees.
If holiday pay is rolled-up, it is paid at the same time as normal pay, instead of being sent when the worker takes the holiday.
The Department for Business and Trade is yet to confirm if and when these proposals will come into play and will update the piece when we know more.
Julia Kermode, founder of IWORK which supports temporary and independent workers, said: “This is fantastic news and something we’ve been urging the government to act on for some time.
“By rolling up holiday pay, temporary workers will receive it on top of their wages, which means they’re guaranteed to receive it.
“This move could boost the average temp’s pay packet by thousands every year.”
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How do I claim?
If you think you’re missing out on annual holiday pay, it’s important to check with your umbrella company or whoever you work with.
You will be entitled to an explanation or support.
They should also tell you how much you might be owed and what happens next.
Rubel Bashir, senior associate at Slater and Gordon, told The Sun: “One of the key benefits of being a ‘worker’ or ‘employee’ as opposed to being self-employed is the entitlement to holiday pay.
“All workers including those that are part-time or work on zero-hour contracts will be entitled to take holidays and receive holiday pay but the calculation of the holiday pay and accrual of the leave will differ based on the hours and days a worker works.
“Workers should request leave and pay and take appropriate advice quickly if an employer refuses as there are short deadlines to bring claims.”
You’re entitled to 5.6 weeks paid holiday if you’re on a zero-hour contract, a temp or engaged in any other kind of assignment with a company.
Your holiday pay is calculated from your average salary over the past year, and sometimes further depending on how much you’ve worked.
You can reclaim outstanding holiday pay even if you’ve now left the company, but you only have three months to do so starting from the time you left.
How far back you can claim payment largely depends on personal circumstances, but the maximum is two years.
More support
If you’re tight for cash and not sure how to get support in the meantime, remember there are a ton of schemes out there to help.
Check if you’re entitled to benefits – some benefits also backdate payments so you could owed a lot of cash.
The first instalment of the £900 cost of living payment is also being paid as we speak.
The vast majority should have received the money by May 17.
If you haven’t received it yet, then get in touch with HMRC.
There are plenty of energy grants and schemes open to help you out if you’re struggling.
These include:
You can also contact the following if you’re really struggling – help is just around the corner:
