Employment agency wont pay sons holiday entitlement

Employment agency wont pay sons holiday entitlement

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T350 Dave

Original Poster:

15 posts

167 months

Wednesday 29th July 2015
quotequote all
Hi all, after some advice on behalf of 22 yo son. He has been working (minimum wage, warehouse labouring) on different contracts on and off through the same employment agency for just under a year. He builds up holiday entitlement with this agency at the rate of half a day per week of work, and normally gets paid this holiday pay at the end of each contract as he is usually out of work for a week or so.
He started his current contract about 13 weeks ago and has currently built up 6.5 days holiday entitlement. He has just been told he must use these days by mid August (1 year after starting his first contract with them) or will lose them. They will not pay him this holiday pay as well as his wages, so he must take the time off work.
Now the thing is, there is talk by the client of taking him on permanent staff, (his first staff job since leaving school 6 years ago) and he does not want to rock the boat by asking for time off as they are extremely busy at the moment.
My issue with what the agency are doing is twofold. Firstly refusing to pay him his holiday pay which they have presumably been paid by the client in their rate mark-up, and secondly using the date he started with them as the cut off point rather than when this particular contract started. I know it’s not a huge amount of money but £300 plus is a big deal to him.
Are they entitled to do this?
Sorry for the long post and thanks for reading.

ikarl

3,730 posts

199 months

Wednesday 29th July 2015
quotequote all
Either explain it to the current people he's working for and see if they are ok with him taking his 'entitled' days off, or, suck it up...

... if he think's he's going to get a full time perm position and taking the days will screw it up, he may have to just take it on the chin

Hughesie

12,571 posts

282 months

Wednesday 29th July 2015
quotequote all
Most agencies will insist all holiday is taken within the year and then allow a small grace period after the end to take any not taken.

Ask for a small grace period, in this case so as not to interfere with the clients working pattern.

In extreme cases some agencies will pay in lieu - but this is generally against the regulations and is only paid under duress.

Some unscrupulous agencies will factor in people not taking holiday and losing out as additional profit !

T350 Dave

Original Poster:

15 posts

167 months

Wednesday 29th July 2015
quotequote all
Some unscrupulous agencies will factor in people not taking holiday and losing out as additional profit !
[/quote]

This is what I was thinking they might be upto. But is it actually legal to do?

Hughesie

12,571 posts

282 months

Wednesday 29th July 2015
quotequote all
T350 Dave said:
This is what I was thinking they might be upto. But is it actually legal to do?
T's & C's dependent, yes.

Same as perm, use it or lose it.

We send out reminders on payslips, Email the workers, and then pretty much force them to take the leave, and people still dont, then moan when they lose it.

T350 Dave

Original Poster:

15 posts

167 months

Thursday 30th July 2015
quotequote all
Hughesie said:
T's & C's dependent, yes.

Same as perm, use it or lose it.

We send out reminders on payslips, Email the workers, and then pretty much force them to take the leave, and people still dont, then moan when they lose it.
OK, thanks for that. I'll tell him to have a word with the client.

edc

9,235 posts

251 months

Thursday 30th July 2015
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Is he PAYE on the books of the agency? It seems implicit that he is with the references to holiday accrual. Depending on the circumstances then what the agency, as his employer, are doing is correct. You cannot pay in lieu of taking statutory leave unless you leave the job.

ColinM50

2,631 posts

175 months

Friday 31st July 2015
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I'm pretty sure the WTR insist that holiday is taken and no payment in lieu is allowed. As previous posters have said, use it or lose it.

Can he not have a chat with his current customer, explain the situation and ask them for advice? Most people are reasonable sensible folk if approached asking for advice, it's when they're told rather than asked that they dig their heels in.

T350 Dave

Original Poster:

15 posts

167 months

Friday 31st July 2015
quotequote all
Yes, he is paye with the agency. It seems therefore they are correct in what they are doing by not paying him in lieu of holidays.

Oh well, he'll just have to suck it up if he doesn't take the days off. Hopefully it will be worth it in the end if he ends up with a permanent staff role.

Thanks for the help everyone!