agency holiday pay

Two drivers two agencies, to keep it simple say £10 per hour 3 day week 12 hour day so £360. Agency1 pays for 12 hour straight though agency 2 pays 8 hours plus 4 hours overtime but at same rate so both get same money.

When on holiday Agency 1 works holiday pay out based on total hours worked and pays 8 hours per day taken at £10 per hour so £240 Agency 2 bases it on 8 hours per day so 24 hours but then averages it out over 5 day 40 hour week so £6 per hour or £144 per day they then say they are following the gangmasters rules on holiday pay.

Are they right do drivers come under these rules when I have looked on the gangmasters website it seems to be for landworkers and food production. Do other agencies work the same way or is it just this one conning drivers again.

i’m on agency and this as always been a puzzle to me
they all do it differently it appears

In simple terms, if you get an enhanced overtime rate after x hours, then your holiday pay is based on the x hours.

If you don’t, then it should be an average of your hours over the last 12? weeks (I think it was 12)…

BUT, don’t forget, it’s pro-rata, so if you do 3 days @ 12hrs @ £10… But then book 3 days holiday rather than a weeks holiday, then it’ll assume a full weeks earnings is those 3x12x10 rather than 5x12x10. So your holiday would be 3x12x10 / 5 x 3… So you wouldn’t get 3 days at £120, you’d get 3 days at £72. Or £216 instead of £360.

Hope that makes sense.

So, if you only work 3 days, then book a weeks holiday pay and you’d get the £360 but obviously lose 5 days holidays…

waynedl:
In simple terms, if you get an enhanced overtime rate after x hours, then your holiday pay is based on the x hours.

If you don’t, then it should be an average of your hours over the last 12? weeks (I think it was 12)…

BUT, don’t forget, it’s pro-rata, so if you do 3 days @ 12hrs @ £10… But then book 3 days holiday rather than a weeks holiday, then it’ll assume a full weeks earnings is those 3x12x10 rather than 5x12x10. So your holiday would be 3x12x10 / 5 x 3… So you wouldn’t get 3 days at £120, you’d get 3 days at £72. Or £216 instead of £360.

Hope that makes sense.

So, if you only work 3 days, then book a weeks holiday pay and you’d get the £360 but obviously lose 5 days holidays…

I think I no what your getting at but if you get £10 per hour to work surely it should be £10 per hour holiday pay, so if you have built up 5 days holiday so take a week off you should get 40 hours at £10 so £400 for the week.

mac12:

waynedl:
In simple terms, if you get an enhanced overtime rate after x hours, then your holiday pay is based on the x hours.

If you don’t, then it should be an average of your hours over the last 12? weeks (I think it was 12)…

BUT, don’t forget, it’s pro-rata, so if you do 3 days @ 12hrs @ £10… But then book 3 days holiday rather than a weeks holiday, then it’ll assume a full weeks earnings is those 3x12x10 rather than 5x12x10. So your holiday would be 3x12x10 / 5 x 3… So you wouldn’t get 3 days at £120, you’d get 3 days at £72. Or £216 instead of £360.

Hope that makes sense.

So, if you only work 3 days, then book a weeks holiday pay and you’d get the £360 but obviously lose 5 days holidays…

I think I no what your getting at but if you get £10 per hour to work surely it should be £10 per hour holiday pay, so if you have built up 5 days holiday so take a week off you should get 40 hours at £10 so £400 for the week.

That CAN happen if you’re given a number of hours holiday rather than a number of days, but again, you’d end up in the same situation because the number of hours you accrue would be based on the number of hours you work…

OK there’s two ways of calculating holiday pay.

Agency 1 uses the Driver Hire way which I always thought was best and for every basic hour you’ve worked they put so much in the holiday pot.

Agency 2 uses the way HMRC state you can use for workers who don’t have set hours. Basically:

When a worker isn’t on fixed hours, holiday pay is calculated as the average pay over the previous 13 weeks, substituting any week where there was no work with one where there was.

So if in 13 weeks you worked every week they’d work out the average basic wage you’d earned over that 13 weeks. If you only worked 10 weeks for them in the previous 13 weeks then they would have to go back before that 13 weeks and include 3 weeks where you were paid to calculate the average.

The most fair method is probably a “holiday pot” that gets added to at a set rate of money earned, and not taken away from once in the pot unless you ask for funds as paid holiday.

The worst scenario is based upon your “average rolling 13 week” which means if you have any cavities, you’ll never get the full whack.
At this time of the year, you might also be told “Sit out January & Febuary, then when you take your holiday in March” (because the weather is too crap to do it earlier!) you’ll get a really rubbish average, just about as low as it will get despite a driver taking on all shifts like most would.

Be careful of those that would let your holiday pot “lapse” and reset to zero after March 31st (or any other date they might have nominated!) by not reminding you that “If you don’t take it, you’ll lose it.”

Winseer:
The “average rolling 13 week” which means if you have any cavities, you’ll never get the full whack.
At this time of the year, you might also be told “Sit out January & Febuary, then when you take your holiday in March” (because the weather is too crap to do it earlier!) you’ll get a really rubbish average, just about as low as it will get despite a driver taking on all shifts like most would.

This is the most common scenario Ive encountered, if your an agency driver in this situation. The best advice would be to draw it twice a year, taking the pot ££s as soon as you get a sniff of the bleak season kicking in to tide you over, that way the daily average will be high, before its diluted by the number of days you dont work, then later on in the year draw it again to pay towards your summer jollies. The holiday pot is also (usually) based on the anniversary date you signed up with the agy, so if you roll over that date with money still in the pot without drawing it before then, you may find youve forfetted it