Holiday pay from agency

builder22 · 29 Oct 2014 at 07:58

I've been getting paid by PAYE through an agency so have accrued some holiday pay. They said they need to send a P11 to payroll or whatever form to find out how much.
I've taken a permanent job now so this will be my last week through agency.
Should that cause any problem with getting the holiday pay I'm owed from the agency??

peige · 29 Oct 2014 at 08:10

Your a little confused with the forms / terminology here.

Your paid by the agency, they deduct from your wages tax (termed PAYE) and National insurance. Part of your rights is that you are entitled to holiday which you accrue (or earn) as you work for them.
The form they use will be internal, P11D is a tax form for different forms of income during your employment but I doubt its applicable to you. They will issue with a P45 when you leave but you want them to sort out holiday your are owed in your final pay run for them before they issue the P45.
Basically, ask them what forms you need to complete to find out how much holiday you have accrue whilst working for the agency, then confirm that this amount will be paid to you in your final pay run. If they say you can't have it as cash then tell them you want that many days holiday next week or whatever before they end your employment. The completing forms thing will be a red herring really just to make it less likely you apply imho, as the payroll software they use will know exactly how much holiday you are owed.

I have had agencies here that have never mentioned holiday entitlements at all, its quite naughty as they are conning the agency workers out of money they are entitled to.

-westy- · 29 Oct 2014 at 08:12

Is it not shown on your payslips?

Kronos · 29 Oct 2014 at 09:06

Most agencies I have worked for albeit a fair few years ago really did not like paying holiday monies due if you left. Hopefully things have changed but I doubt it.

I remember asking a union recruiter who came round the site I was working why we as agency workers were paid less, yet did exactly the same work as the guys employed by the company.

Needless to say I still await a definitive answer some 30 years later.

So be careful of these agencies when it comes to getting what is rightfully yours, as they seem to operate under different rules than the normal employers.

builder22 · 29 Oct 2014 at 10:57

Ok. They just said we need to send a p11 form upstairs!!
I have no contract with the agency but have been doing 50hr weeks for the past 2 months. Will it be 12% of what I've been paid is what they owe me in holiday pay?
This is my last week so last pay will be next Friday.

builder22 · 29 Oct 2014 at 11:08

Also, how else could they pay me if not a cash payment.

Btw I only mentioned PAYE so you know it's not through an umbrella company where you don't get holiday pay as the tax dodgers pay it in to your weekly wages somehow!

D.P. · 29 Oct 2014 at 11:26

builder22 said:
Ok. They just said we need to send a p11 form upstairs!!
I have no contract with the agency but have been doing 50hr weeks for the past 2 months. Will it be 12% of what I've been paid is what they owe me in holiday pay?
This is my last week so last pay will be next Friday.

You normally accrue at a monthly rate assuming you work full them. So if you earn 20 days a year then you will earn 1.667 a month, so 3.33 in 2 months.

D.P. · 29 Oct 2014 at 11:28

builder22 said:
Also, how else could they pay me if not a cash payment.

Btw I only mentioned PAYE so you know it's not through an umbrella company where you don't get holiday pay as the tax dodgers pay it in to your weekly wages somehow!

Companies don't have to pay out vacation money, they can instead force you to take that time as vacation. This pretty much amounts to the same thing in most circumstances but if you have set a last day in say 6 weeks time and you have. 2 weeks of vacation accrued then they will force you to take your 2 weeks before you leave. That way they do t pay out anything.

builder22 · 29 Oct 2014 at 16:19

Sorry, not fully understanding this. I only get paid if I work (it's HGV driving through an agency btw). I'm free to turn work down so can have a 'vacation' whenever I like.

Bottom line because I'm doing my last shift this Friday I might not get any of the accrued holiday pay? Yeah?

peige · 29 Oct 2014 at 16:49

No. You should be entitled to holiday pay, ether in cash or time. Ask them how they are going to handle the holiday you have earned. They may well keep you on the books one more week and pay you the holiday next week or they might give it as an addition on your final pay run. This will make no difference to your new job, it will only delay the P45 by a short time which your new employer will want.
Doesn't matter if you could or did turn down work for them, every hour you worked for them would have earned you a percentage holiday which you are entitled to.

As I said before, agencies love to get out of this and do profit on it as people who work for them aren't aware that they are as entitled to holiday as a permanent member of staff.

builder22 · 29 Oct 2014 at 16:54

Ok, thanks. So no need to worry about getting it sorted before next week then. I'm not desperate for the cash but don't want to get 'bumped'

I still don't know what's meant by 'in cash or in time' tho. I can't see how they can give me time!!

Windle · 29 Oct 2014 at 23:55

builder22 said:
Ok, thanks. So no need to worry about getting it sorted before next week then. I'm not desperate for the cash but don't want to get 'bumped'

I still don't know what's meant by 'in cash or in time' tho. I can't see how they can give me time!!

That's easy, time in lieu of payment. Ie you can have Friday afternoon off but still get paid for it.

batsy · 30 Oct 2014 at 00:18

builder22 said:
Sorry, not fully understanding this. I only get paid if I work (it's HGV driving through an agency btw). I'm free to turn work down so can have a 'vacation' whenever I like.

Bottom line because I'm doing my last shift this Friday I might not get any of the accrued holiday pay? Yeah?

You'll have to look at the terms of the contract you signed but as stated by others you should be accruing holiday as you work. You say you're free to turn work down but are you required to work a minimum amount of hours per month?

peige · 30 Oct 2014 at 08:13

If he is employed by an agency he has to be earning holiday. Its only if you are self employed that he wouldn't but the fact he is having PAYE deductions indicates not.

Its possibly a complex sum to work out but it should be based on a percentage of the hours worked. I know agencies have people over on this, most just don't seem to know that they are entitled to holiday.

https://www.gov.uk/agency-workers-your-rights/your-rights-as-a-temporary-agency-worker

As windle says, time in lieu is easy, they will just pay you for a few hours next week even though your not working and then do your final pay run. You take your P45 to your new employer and even though the two employments will overlap with the details on your P45 all will come good.

This is a subject close to me as we use agencies a lot and recently found one wasn't playing fair on holidays, specifically when they ended there employment with the agency. Hundreds of pounds were involved and all to people that this money made a huge difference to. When asked why they said that if a worker didn't ask they didn't do it.