Under the Working Time Regulations 1998 workers are entitled to 5.6 weeks paid annual leave per year. In 2024 the government amended these regulations to allow organisations that engage people on an irregular-hours basis to choose to pay holiday pay as a rolled up additional payment paid at the same time as you receive your pay for the hours worked in any given pay period.
Your contract with your agency and your Key Information Document should set out your holiday entitlement and how this is paid. Your agency and/or umbrella company should be transparent about how you accrue your holiday and how it is paid to you. If you are unsure about how your holiday is accrued and paid, you can use our sample email to ask for more information about how your holiday entitlement has been calculated and paid since you signed up with the agency/umbrella company.
A Supreme Court decision in 2022 in the case of Harpur Trust v Brazel determined that, under the previous wording of the Regulations, all workers were entitled to (a minimum of) 5.6 weeks’ paid leave (after the first year of service), however the 2024 changes to the Regulations mean supply agencies can now legally pay ‘rolled-up holiday pay’ to agency workers. The minimum rate at which holiday pay can be paid is 12.07% of the agreed rate and the Key Information Document/Pay Statements should make it clear how this operates in practice. It should not simply be part of the pay rate for the work done: it should be paid in addition to the hourly rate.
The government has published guidance on this change to the method of calculation.
Where the School Teachers Pay and Conditions Document (STPCD) applies to directly employed supply members, and agency members who have worked on one assignment or more in the same role with the same school or college for 12 weeks or more, holiday pay will be rolled up into the daily rate. Such agency and supply members must be paid on a daily basis calculated on the assumption that a full working year consists of 195 days; the daily rate, based on STPCD pay rates for teachers, includes an element of holiday pay.
If you ask your agency to explain how your holiday pay is calculated and you are still not clear or if you believe that you are being underpaid holiday pay, please contact us at AdviceLine. You will be asked to collate copies of your contract with your agency, your umbrella company if you have one, your Key Information Document if you have one, your pay slips illustrating how you are paid holiday pay, details of what hours and days you have worked with the agency, and copies of your email exchange with the agency about your holiday entitlement. You might be advised to make use of the AWR pay assessor to help produce a chart showing your working days. On the basis of your documents and working pattern and holiday pay arrangements, we will assess whether we believe that your agency has paid you correctly for your holiday pay and we will support you in securing what you are owed.
Use this model letter to clarify how holiday pay has been calculated by your agency.