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Question:

Time Off: I am a temporary agency worker. Am I entitled to paid holiday?               

 

 

Answer:

Under the Working Time Regulations 1998 all workers are entitled to receive four weeks paid holiday per annum, including temporary workers working via an agency. Many agencies try to get round this by having a slice on top representing a ‘holiday’ element on top of the normal hourly rate; the idea being that the agency worker then saves up that top slice to use when he or she wants to take time off.

 

In early 2006 the European Court of Justice handed down it’s judgement in Caulfield v Marshalls Clay (and others) on the issue of whether employers could get round the obligation to give paid holiday by rolling it up into the normal hourly rate. Confusingly, the ECJ held that employers should not pay an extra slice for ‘holiday’ on top of the hourly rate. However, if the employer does so anyway, it can set-off the extra money paid against the payments it should make for a specific holiday period.  Having said that, employers still have to clearly distinguish between the hourly rated pay and the holiday top slice for example on the payslip.

 

This decision is good news for Employment Agencies and other employers who prefer to avoid paying for specific periods of holiday leave, and basically means that they can go on as before. However its not so good news for the agency worker. See also employment status of agency workers

 

Last reviewed:   July 2010

 

 

 

James Carmody

Employment Solicitor

 

Reculver Solicitors

12-16 Clerkenwell Road

London EC1M 5PQ

 

www.reculversolicitors.co.uk

info@reculversolicitors.co.uk

Tel 0207 324 6271

 

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