The United Kingdom’s 1.6 million temporary workers can look forward to a significant financial boost as the government confirms that “rolled-up holiday pay” will be made lawful.
This groundbreaking development will empower irregular-hour and part-year workers, potentially putting thousands of pounds back in their pockets.
Umbrella company compliance specialist, PayePass, has enthusiastically welcomed this decision by the government.
This announcement marks a significant step forward in labour rights and aims to ensure that temporary workers receive their entitled holiday pay when they earn it, rather than waiting for a specific holiday period.
The government’s response comes after a consultation on holiday pay and confirms that irregular-hour workers will now be entitled to receive their holiday pay “rolled-up” as part of their regular wages. In other words, holiday pay will be included in their wages rather than being held back until they take time off.
Holiday Pay Unfairly Withheld
Prior to this ruling, many temporary workers faced the unfair withholding of their holiday pay, causing them to lose out on substantial sums of money every year. With this policy shift, workers can expect a fair and timely distribution of their earnings, benefiting them significantly.
PayePass CEO, Julia Kermode, expressed her excitement about the government’s decision, stating, “This is huge news. By allowing rolled-up holiday pay, the UK’s growing number of temps and irregular-hour workers will receive what’s legally theirs, which could be worth thousands for every worker.”
Kermode continued, “Temporary workers who qualify will receive holiday pay when they’re paid their wages, which means they’re guaranteed to receive it. All too often, these workers don’t claim holiday – partly due to the fact that they don’t know they’re entitled to it and partly due to the holiday pay being unfairly withheld from them. It’s no exaggeration to say that hundreds of millions of pounds of holiday pay have been left unclaimed over the years.”
Boosting Workers Amid Challenging Times
With economic challenges and uncertainties affecting the lives of many, rolled-up holiday pay is expected to provide a much-needed financial boost to hundreds of thousands of workers, helping them to meet their financial obligations. Moreover, this change in the law is anticipated to discourage unscrupulous businesses from intentionally withholding holiday pay from their employees.
While the government has not yet specified a timeline for the introduction of rolled-up holiday pay, all eyes are now on the upcoming Budget announcement this month. Many hope that the Chancellor will provide a concrete date for this transformative policy, ensuring the fair treatment of temporary workers across the United Kingdom. This move is expected to bring greater financial stability and security to this essential segment of the labor force.
Amelia Brand is the Editor for HRreview, and host of the HR in Review podcast series. With a Master’s degree in Legal and Political Theory, her particular interests within HR include employment law, DE&I, and wellbeing within the workplace. Prior to working with HRreview, Amelia was Sub-Editor of a magazine, and Editor of the Environmental Justice Project at University College London, writing and overseeing articles into UCL’s weekly newsletter. Her previous academic work has focused on philosophy, politics and law, with a special focus on how artificial intelligence will feature in the future.
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