The Government has put in place new laws from 2024 which will simplify holiday pay and accrued holiday pay for temporary workers with irregular hours and part-time workers on permanent contracts, therefore providing assurance for umbrella workers that they are receiving the correct payment:
Commenting Crawford Temple, CEO of Professional Passport, the UK's largest independent assessor of payment intermediary compliance said:
"Simplifying the rules around holiday pay is most welcome and brings clarification for hirers and workers as we move forward into 2024. For some time, holiday pay and whether it is rolled-up or accrued has brought confusion - for me, it has always been about transparency so that workers understand their entitlement to holiday pay and how to ensure they are receiving the correct amount.
"There were a number of anomalies in the legislation that the court identified in the case of Harpur Trust v Brazel last year and these latest changes address the issues and simplify the calculations of pay. Let's hope that the new legislation will ensure that workers are now treated fairly and will benefit from a transparent and compliant process to receiving the holiday pay that is due to them and that many of the reported issues on providers withholding holiday pay will become a thing of the past."
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