AWR and holiday pay - being told it's daily rate.

[secretcommonjoke]

Hi all,

I'm a contactor-newb, so i'm hoping you can help me.

1. I accepted a four week contract with a fixed daily rate. My 'contract' is via an umbrella company, so it goes company> agency> umbrella> me.

2. My contract was then extended by a month.

3. My contract was then extended again by another month.
This took me past 12 weeks, but my employer (umbrella) never contacted the company about equal treatment.
On day 21 I harassred them to do something, because I accepted a wage below the industry average.

4. My contract has been extended again for two months. Problem is I booked a holiday months ago for one of these weeks. So, I figured as I'd been over 12 weeeks now, I should be entitled to AWR, including holiday pay.

The Umbrella company are now saying that's part of my daily rate (from when my contract was only for four weeks) and i'm not getting paid for that week. Even though it states in my contract that the agency doesn't pass on any money to the Umbrella company to pay my holiday.

Legal standing?

What I've found is that saying it's part of your daily rate is unlawful, and I can't personally understand the logic of 'paying' me holiday pay when my contract was originally only for four weeks.

Is employment tribunal the best bet? I find it hard to believe that this is a legally acceptable situation.
And again, for the record, I do not have equal treatment - I am owed that also.

Thanks for all/any help.

[tractor]

...

Hi all,

I'm a contactor-newb, so i'm hoping you can help me.

1. I accepted a four week contract with a fixed daily rate. My 'contract' is via an umbrella company, so it goes company> agency> umbrella> me.

2. My contract was then extended by a month.

3. My contract was then extended again by another month.
This took me past 12 weeks, but my employer (umbrella) never contacted the company about equal treatment.
On day 21 I harassred them to do something, because I accepted a wage below the industry average.

4. My contract has been extended again for two months. Problem is I booked a holiday months ago for one of these weeks. So, I figured as I'd been over 12 weeeks now, I should be entitled to AWR, including holiday pay.

The Umbrella company are now saying that's part of my daily rate (from when my contract was only for four weeks) and i'm not getting paid for that week. Even though it states in my contract that the agency doesn't pass on any money to the Umbrella company to pay my holiday.

Legal standing?

What I've found is that saying it's part of your daily rate is unlawful, and I can't personally understand the logic of 'paying' me holiday pay when my contract was originally only for four weeks.

Is employment tribunal the best bet? I find it hard to believe that this is a legally acceptable situation.
And again, for the record, I do not have equal treatment - I am owed that also.

Thanks for all/any help.

Sorry, from your description, I think you are a temporary worker.

[secretcommonjoke]

Sorry for sounding ignorant, but what difference does that make, then?

[tractor]

...

Sorry for sounding ignorant, but what difference does that make, then?

Well, given that this is a forum typically frequented by company owners who are usually more interested from a corporate viewpoint rather than an employee viewpoint. In fact many here spend a great deal of time and energy ensuring that they cannot be mistaken for an employee. I was just suggesting that you might find better advice elsewhere.

If you are NOT operating through your OWN limited company the following links might help. If you are then I apologise for misunderstanding. But either way, if you think you are subject to AWR, there are probably better places to seek advice.

However, for what it's worth, and IANAL etc with the usual disclaimers, your contract determines what you can rightfully expect from both the umbrella and the agency. The law determines whether that is right.

This from the BBC here

This from BIS gives you details of how to remedy issues.

[secretcommonjoke]

I thought it would be ok as I read many posts in regards to Umbrella companies and which ones to use, and therefore did not realise this wasn't also a forum also for employees. I mean, not to sound funny, but on the homepage it says it's for IT contractors and has guides regarding to using Umbrella companies.

I appreciate the links. I've read the bis, but it's not that straightforward with my issue, as it's a document. there's nothing that explicitly states either/or.

Thanks tho'. Guess i'll look for help elsewhere then.

[tractor]

...

I thought it would be ok as I read many posts in regards to Umbrella companies and which ones to use, and therefore did not realise this wasn't also a forum also for employees. I mean, not to sound funny, but on the homepage it says it's for IT contractors and has guides regarding to using Umbrella companies.

I appreciate the links. I've read the bis, but it's not that straightforward with my issue, as it's a document. there's nothing that explicitly states either/or.

Thanks tho'. Guess i'll look for help elsewhere then.

As you are discovering, there is a wide gulf between contractors and temps (which from your description, this appears to be you).

Good luck with the research though.

[kingcook]

The "daily rate" is the umbrella company's income, not yours. They then use that to pay you a wage, bonuses, and holiday day.

This is how an umbrella company works.

Did you expect to pay your umbrella a few quid every week, then expect them to pay you £xxx/day while you're on holiday? How do you expect they make their money?

[moggy]

maybe ask this in the umbrella section.

don't get put off by the company owner tractor - this board is frequented by contractors - be it umbrella - ltd and paye.

speak with your umbrella co about your awr rights, they certainly should be paying you holiday pay - they are your employer after all.

the rate should include all of this, and you should be factoring this in when negotiating.

[SueEllen]

From following the threads and bothering to read other information what umbrella companies do is take some money of your daily rate for holiday pay.

So out of your daily rate should come Employers NI, Employees NI, Income tax AND holiday pay.

Then once you decide to go on holiday they pay your accumulated holiday pay back to you.

However if your holiday is longer than what you accumulated then the rest of your holiday is taken as unpaid leave.

If the Umbrella Company hasn't done this and they are one that posts on here (do a search to check) then ask them.

[LisaContractorUmbrella]

SueEllen is right. Holiday pay is dealt with as it is by umbrella companies in order to comply with the requirements of the EC Working Time Directives which found that the payment of rolled up holiday pay i.e. assumed within your rate of pay is unlawful and that a separate specified payment for holiday pay must be made.

With regard to the AWR you are entitled to equal pay after a period of 12 weeks unless your umbrella company is operating a Swedish Derogation Contract and this is something that your umbrella company should have made you aware of when you first became employed.