PAYEToASR Hays form

[la7ush]

Can anyone explain how does Statutory Leave works for temp employees going through Hays and their umbrella PSL?

In their PAYEToASR under Statutory Leave says that:

7.1 Under the Working Time Regulations 1998 and the Working Time (Amendment) Regulations 2007, the Temporary Worker is entitled pro-rata to 28 days paid statutory leave per annum (inclusive of bank and public holidays, where the Temporary Worker is permitted to take such holidays) ("Statutory Leave")

7.2 All entitlement to Statutory Leave must be taken during the course of the leave year in which it accrues and none may be carried forward to the next year. (The leave year of the Employment Business runs from 1 January to 31 December.) Failure to take any holiday by the end of the holiday year in which the entitlement arises will result in such outstanding holiday being forfeited.

7.3 Entitlement to payment for Statutory Leave accrues in proportion to the amount of time worked continuously by the Temporary Worker on Assignment during the leave year. Payment for leave will reflect the Temporary Worker’s statutory holiday pay entitlement.

7.4 A Temporary Worker who wishes to take any Statutory Leave to which he or she is entitled, must give the Employment Business notice in writing of 1 week for a single day and 2 weeks for more than one day. Unless the Employment Business informs the Temporary Worker in writing that it is not permitted for him to take Statutory Leave on the specified dates, the Temporary Worker shall be entitled to take up such notified leave entitlement.

7.5 Where this Agreement is terminated by either party and a P45 is requested, the Temporary Worker shall be entitled to a payment in lieu of any untaken Statutory Leave where the amount of Statutory Leave taken is less than the amount accrued in accordance with clause 7.3 above.

7.6 None of the provisions of this clause regarding the statutory entitlement to paid leave shall affect the Temporary Worker's status as a self-employed worker.

Also I've been told by their agent that if I decide to go PAYE the NI will not be included in the original rate and he suggested that I would be better of with the umbrella even though it says in the same form that

Rate of Pay
4.1 The Employment Business shall pay the Temporary Worker weekly in arrears the basic rate specified in the relevant Assignment Confirmation Letter for each hour/day worked (whether or not the Employment Business receives payment from the Client in respect of such work) and shall deduct all applicable taxes (including any national insurance contributions) required by law including specific legislation governing the tax treatment of workers assigned by employment businesses.


Thanks in advance!

[northernladuk]

What exactly do you want to know. Looks pretty straight forward and self explanatory to me that.

I guess with an umbrella you can claim expenses which you couldn't through a direct engagement? Not sure about that one.

[LisaContractorUmbrella]

Holiday pay is a Statutory entitlement which means that all employers (including recruitment agencies and umbrella companies) have to abide by the rules, hence the inclusion in the contract. On your second point - if you are offered the same rate to be on the agency's payroll as their preferred umbrella, you would be worse off being employed by the umbrella company. The reason for this is that employing people has costs attached - if you are employed by the agency, they will bear those costs; if you work with an umbrella, the only income they have is the contact rate which is paid to them by the recruitment agency and therefore the employment costs have to come from this amount.