Holiday pay and umbrella companies – the facts

You do not work for the whole year or if you work,holiday allowance is worked out pro rata.

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An employer is responsible for paying holiday pay. But when you use an umbrella company,it is you who covers the price,not the company. Normally the amount of holiday pay works out at 12.07%,which is 5.6 weeks divided from the rest of the year (46.4 months). Because your holiday pay comes out of your money,umbrella companies accrue holiday pay and keep it until you take time off. Other firms might pay every month or week instead to you. Some companies will offer both options,but might use one and ask if you would like it you to request the other option. Your holiday pay should be shown as a separate item on your payslip,and can not be included in your basic pay.

When you decide on an umbrella company,look at how you can check on your holiday pay. Many umbrella companies have handy online portals that enable you to check various details,including holiday pay you have available. But if you can not easily see how much has been accrued,you can simply work it out by using the percent over (12.07%). Calculate the hours thatyou have worked and utilize the percentage to get the total amount of holiday pay which you have accrued.

It’s essential to be cautious when you’re looking at umbrella companies in connection with holiday pay. If a company is not open about their holiday pay policies and procedures,you might have to be concerned about how they handle things. Some umbrella companies are more compliant than others,so you want to be wary of any that might not make it clear they cover holiday pay for contractors. Be sure you look carefully at the employment contract which you are given so thatyou understand you will get holiday pay from the company.

If you use an umbrella company,you should get holiday pay. Don’t forget to check how you will be paid when choosing a company.