So if your agency you don’t get holiday pay ( I don’t ) , I
Have to put the 12% they deduct from my wages & then pay
Pay into my account weekly into a pot ( bank account ) , then
Use that as holiday pay
So it’s a bit late for these 2 weeks hol but
If I can get furloughed what will happen for the 2 in may I’m
Off , will I get 80% those 2 weeks or will
I have to put 12 % of the 80% to cover no
Hol pay for those 2 weeks
Good job I’ve put money away over the years for a rainy day or
Could end up penny less & homeless !!! The
Joy of agency !!!
What your agency are doing is illegal. It’s called rolled up holiday pay and has been banned. They need reporting.
From my understanding of what is said on here this is normal
Practise for agency to deduct 12% from you wages and pay as
Hol , but interesting reading as it appears it’s not
It isn’t supposed to be a 12.07% reduction from pay - it is supposed to be a 12.07% of your full gross pay that THEY add into a holiday pot on your behalf…
Eg. If you work 40 hours @ £10ph then you get paid £400 gross, and £48.28 is added into a pot that isn’t taken from the £400…
It means your effective hourly rate is £11.21p of course, about the difference between being PAYE and Ltd Company used to be…
You are then supposed to be able to claim chunks of it in “whole days worth”, so that for instance, if you have 5.2 days banked up - you could elect to take a day per week for the next five weeks whilst not doing a stroke of work.
It would mean enough to get your stamp paid (A “Retainer”) BUT also low enough to get a tax rebate in your pay for that week as well.
One Day typically gets paid 10 hours at whatever your average hourly rate of work done is.
The pot does NOT waste away if you don’t take your holidays until it is quiet - “Wasting Holiday Pots” was another abuse and loophole in the system, that hopefully will be all but gone now, if not very soon.
You should be able to take as much or as little of it as you like at a time - BUT the optimum amount to take, as I’ve said is “enough to pay a little stamp on” but “low enough to get a rebate top-up”.
This means you can effectively take home something like £190 for £170’s worth of hours… 
toonsy:
What your agency are doing is illegal. It’s called rolled up holiday pay and has been banned. They need reporting.
The important detail that Dozy left out is that he is using an umbrella company. The holiday pay is rolled into the hourly rate the agency pay he umbrella company when they invoice the agency.