Can an agency keep unclaimed holiday pay.

[TheDude]

I am on a PAYE contract which states that any holiday pay accrued but unclaimed by 31st December will be forfeited.

Sadly my father passed away Christmas day and it completely slipped my mind to make the claim for holiday pay before year end. The amount forfeited is around £1500 which I would rather not lose.

I realise that this was a lapse on my behalf however do agencies really have a legal right to retain money like this?

[Lance]

I am on a PAYE contract which states that any holiday pay accrued but unclaimed by 31st December will be forfeited.

Sadly my father passed away Christmas day and it completely slipped my mind to make the claim for holiday pay before year end. The amount forfeited is around £1500 which I would rather not lose.

I realise that this was a lapse on my behalf however do agencies really have a legal right to retain money like this?

I'm not sure that it's legal to make someone forfeit their holiday. If holiday not taken, then it needs to be paid to the employee. That was certainly employment law back in the 90s.

[eek]

I'm not sure that it's legal to make someone forfeit their holiday. If holiday not taken, then it needs to be paid to the employee. That was certainly employment law back in the 90s.

Nope - holiday pay is very much use it or lose it as duty of care rules means employers should encourage you to take it (via holiday pay) so if you don't take it it's your problem not the employers. This has allowed some umbrella firms to play fast and loose with it for years.

But there is a legal way to recover the holiday pay - by leaving in the next three months (or longer if you contract is less than 1 year and you leave within that year) as you can ask for the appropriate holiday pay (which hasn't been paid) to be paid. You may have to go to a employment tribunal but the case law in that circumstance is clear cut.

[TheDude]

It appears that the agency have been very understanding and I will be paid next week.

[cojak]

It would be nice to name the agency for doing the right thing, we are quick enough to ask if it was the other way around…

[Andy Hallett]

It appears that the agency have been very understanding and I will be paid next week.

That's a victory for you and common sense. Sympathies for your loss.