Is it legal for an agency to class part of your pay as “holiday pay” on your payslip, but still only pay you the agreed rate for the job?
Don’t think that’s allowed.
See the section on “rolled up holiday pay” in this: gov.uk/holiday-entitlement- … the-basics
Depends how the job was advised. A lot of PAYE seem to do it where the rate includes holiday pay. If it’s showing sperate on the wage slip it’s legal but annoying when it effectively means a 12% pay cut on what you expected
idrive:
Is it legal for an agency to class part of your pay as “holiday pay” on your payslip, but still only pay you the agreed rate for the job?
Are you PAYE or self employed/umbrella?
Paye.
No mention of it until it appeared on payslip.
Quote from Roymondo’s link…
'Rolled-up holiday pay
Holiday pay should be paid for the time when annual leave is taken. An employer cannot include an amount for holiday pay in the hourly rate (known as ‘rolled-up holiday pay’). If a current contract still includes rolled-up pay, it needs to be re-negotiated.’
idrive:
Is it legal for an agency to class part of your pay as “holiday pay” on your payslip, but still only pay you the agreed rate for the job?
Correct me if I’m incorrect, if the agy pay you £10/hr and you do 10hrs, you’ll earn £100 gross? Non of the holiday pay accrued isn’t deducted from that £100
Like on another post I wrote, My wife is umbrella and has to pay a share of THEIR N.I…thats not fair either…but one of their payslips in now in the hands of the Inland Revenue for scrutiny. 
peirre:
idrive:
Is it legal for an agency to class part of your pay as “holiday pay” on your payslip, but still only pay you the agreed rate for the job?Correct me if I’m incorrect, if the agy pay you £10/hr and you do 10hrs, you’ll earn £100 gross? Non of the holiday pay accrued isn’t deducted from that £100
I’m paid for the correct hours at the correct rate.
But in the breakdown it says for example…
Hours worked: 10 @ £10ph
Gross pay: £100
Taxable pay items:
Pay - £88
Holiday pay - £12
Seems a bit fishy?
truckyboy:
Like on another post I wrote, My wife is umbrella and has to pay a share of THEIR N.I…thats not fair either…but one of their payslips in now in the hands of the Inland Revenue for scrutiny.
As long as it doesn’t take their hourly rate below NMW it isn’t illegal. It’ll have been stated somewhere in the literature of the agency or the umbrella company she signed up to. You can keep banging on about it as much as you want but you’re in a minority on here for not knowing about how umbrellas work. If we mere uneducated truck drivers know how it works then why couldn’t someone in education find out?
idrive:
peirre:
idrive:
Is it legal for an agency to class part of your pay as “holiday pay” on your payslip, but still only pay you the agreed rate for the job?Correct me if I’m incorrect, if the agy pay you £10/hr and you do 10hrs, you’ll earn £100 gross? Non of the holiday pay accrued isn’t deducted from that £100
I’m paid for the correct hours at the correct rate.
But in the breakdown it says for example…Hours worked: 10 @ £10ph
Gross pay: £100Taxable pay items:
Pay - £88
Holiday pay - £12Seems a bit fishy?
Yes, your on £8.80 an hour.
peterboroughmatt:
idrive:
peirre:
idrive:
Is it legal for an agency to class part of your pay as “holiday pay” on your payslip, but still only pay you the agreed rate for the job?Correct me if I’m incorrect, if the agy pay you £10/hr and you do 10hrs, you’ll earn £100 gross? Non of the holiday pay accrued isn’t deducted from that £100
I’m paid for the correct hours at the correct rate.
But in the breakdown it says for example…Hours worked: 10 @ £10ph
Gross pay: £100Taxable pay items:
Pay - £88
Holiday pay - £12Seems a bit fishy?
Yes, your on £8.80 an hour.
Oh no I’m not 
So I have finished working for this agency now.
Didn’t want to rock the boat while it was ongoing as it was a good number.
Am I right that it is illegal for them to take holiday deductions like this and I can claim it back.
Do i just call up and ask for it?
Payslip attached for reference, cover your eyes if it offends.
Anyone who is clued up on this issue I would appreciate your input before I call them, cheers
peterboroughmatt:
idrive:
peirre:
idrive:
Is it legal for an agency to class part of your pay as “holiday pay” on your payslip, but still only pay you the agreed rate for the job?Correct me if I’m incorrect, if the agy pay you £10/hr and you do 10hrs, you’ll earn £100 gross? Non of the holiday pay accrued isn’t deducted from that £100
I’m paid for the correct hours at the correct rate.
But in the breakdown it says for example…Hours worked: 10 @ £10ph
Gross pay: £100Taxable pay items:
Pay - £88
Holiday pay - £12Seems a bit fishy?
Yes, your on £8.80 an hour.
Indeed. In this example the holiday pay is being used to disguise £8.80ph as £10ph.
I’d enquire as if this rate is also the self-employed rate or the PAYE rate as well, as there are some shysters out there who’d try and palm this off as what I call “Pseudo PAYE” which is actually a self-employed rate of £8.80ph in this example, - which I believe is actually ILLEGAL as being too low to be a proper self-employed rate…
Merely labelling some already-included hourly rate as “Holiday pay” - doesn’t make it so of course. It is more about disguising Self-Employed as PAYE I reckon, as you don’t get holiday pay on SE- but you can pretend one is getting it - to disguise the employer paying no stamp for that member of staff…
Conor:
truckyboy:
Like on another post I wrote, My wife is umbrella and has to pay a share of THEIR N.I…thats not fair either…but one of their payslips in now in the hands of the Inland Revenue for scrutiny.As long as it doesn’t take their hourly rate below NMW it isn’t illegal. It’ll have been stated somewhere in the literature of the agency or the umbrella company she signed up to. You can keep banging on about it as much as you want but you’re in a minority on here for not knowing about how umbrellas work. If we mere uneducated truck drivers know how it works then why couldn’t someone in education find out?
These umbrella companies are ■■■■■■■ useless, you’re better off telling them to stick it and go self employed, find a decent accountant and you’ll be much better off
If you’re PAYE through an agency are there no pension deductions as they are effectively your employer?
If you took a week off whilst working for them did you get holiday pay? Looks to me like they’re paying holiday pay on a weekly pro rata basis so at least you’re getting it. Assuming of course the hourly rate is correct. 48 hrs before O/T kicks in though!!
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Where exactly have they deducted holiday pay from you on that wgae slip?
The only deductions shown are PAYE tax and NI contributions.
As you have covered up the lines showing what the 12 hours and 48 hours were paid for it makes it harder to guess.
Was it 48 standard hours and 12 hours overtime or did you take a day’s holiday and get 12 hours holiday pay?
Unless I’m missing something your barking up the wrong tree.
The only thing I can see wrong there is your not paying into a pension which if your PAYE then you certainly should be and so should your employer aka the Agency.
As above. That wageslip shows no deductions for holiday pay, just income tax and national insurance which is right.
The blacked out line just shows the name of the company I was at.
I’m not too fussed about it tbh but I thought that what they have done is called “rolled up” holiday pay and I’ve heard it said on here that it’s illegal for them to include it in your hourly rate like that.
No holidays taken. 48 hours at contracted rate and 12 hours time and a half.
My hours at the correct rate worked out at £1007.28 as shown in the first 2 lines so just wondering what the £66.17 shown as holiday pay is all about?
You’re in one of those crappy umbrella contracts, your agency submits an invoice in your behalf to the client you work for, the payment per hour will be broken down to include holiday pay. When you first start with the agency they will ask how you want your holiday pay, wether to roll it over for when you do take a holiday or have it piggy back your weekly pay.
Looking at your pay slip you opted for the latter, probably won’t remember as at the end of the day agency staff are salesmen / women and confuse with utter jargon.