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#Employment : Agency Worker - Holiday Pay


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I am an agency worker (have been for over a year) who works 37.5 hrs a week and I have a query relating to the amount of pay I receive as holiday pay. My holiday pay is not calculated at the same rate as a normal working day. Instead it is calculated by reference to my average day's pay.

 

When calculating the average day's pay, the agency uses my normal day's pay for day's I have worked as normal, £0.00 is contributed to the calculation for unpaid sick leave and £0.00 for any holiday I have taken, during a 12 week period. So any sick leave or holiday leave that i take, reduces the average daily rate of pay, thus reducing my holiday pay. So effectively by just taking a day off i will reduce the amount of pay i receive the next time i have a day holiday.

 

I have queried this with the agency as it appears unlawful. Does anyone know if they are within their rights to work out holiday pay like this?

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The calculation should be based on a week's pay rather than a day's pay. See section 16 below.

 

http://www.legislation.gov.uk/uksi/1998/1833/contents/made

 

If there are any unpaid weeks in the 12 week period immediately before the holiday, they need to include earlier weeks until they have 12 paid weeks to base their calculations on. See 223(2) below.

 

http://www.legislation.gov.uk/ukpga/1996/18/part/XIV/chapter/II

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