Brolly extra services question

[curtis]

I have a general question about Umbrella companies and the services that they offer. Some Umbrella's will pay you for holiday, now I take it they take a percentage of your pay and keep it then pay you it when your off. I believe Parasol provide this.

Is this something thats optional when you sign up with an umbrella that does this and how exactly does it work, if they take a percentage and keep it I'd rather have it and it earning intrerest in my account.

I will ask the umbrella when I ring them but wanted to get a 'real world' answer instead of what could be a one sided view from the brolly.

[sidknows]

I believe its a legal requirement that they deduct holiday pay although different umbrellas have their own interpretation of how this is calculated

[WindyAnna]

Because you are employed they are legally bound to give you a number of days paid holidays each year. They aren't going to fund that so you do! In the case of P4, when they went into administration, they witheld holiday pay which in some cases was substantial!

[curtis]

I understand I have to pay for it, obviously but what I don't want it for a brolly that takes a percentage of my pay and keeps it earning them interest when I would rahter they pay me the lot and I allocated an amount to cover me when I'm off and therefore earning me interest.

What happens if they do this to someone who hardly takes a holiday, will this just build up and up.

I read on one umbrella's website this answer about holidays- 'Your holiday pay is calculated at 1/12th of your total gross weekly or monthly earnings. We do not withhold this holiday pay - you receive it with every salary payment and it is clearly shown on your payslip.'

I don't really get this ?? if you get it anyhow in your pay why bother specifiying its holiday ? Is this something for them as its like someone else said a legal thing they have to be shown to be providing? Or am I reading wrong?

[HYpno27]

I believe some account for it on a monthly basis and don't hold the money back - Parasol for example.

Other umbrella companies are available

[malvolio]

I don't really get this ?? if you get it anyhow in your pay why bother specifiying its holiday ? Is this something for them as its like someone else said a legal thing they have to be shown to be providing? Or am I reading wrong?

I think they are trying to abide by the law and let you manage your own money at the same time. As in

"Here is your holiday entitlement, and here is the money to set aside to cover it when you actually have a holiday. Make sure you keep it in a safe place"

Get it?

[LisaContractorUmbrella]

According to a new EU law which came into force some time ago but has not really been 'enforced' employers can no longer pay rolled up holiday pay which means including holiday pay within the gross earnings and only showing one figure on the payslip. It is now a requirement that holiday pay is shown seperately when the employee actually takes their holiday.

HTH

[NotAllThere]

Sounds like an excellent reason to go ltd.

[tim123]

Sounds like an excellent reason to go ltd.

ISTM that the risks attached to having an extra person in the chain holding onto your money, is the best reason for most contractors going Limited.


tim

[Emily]

As has already been stated it used to be the case that you could choose a holiday inclusive or a holiday exclusive rate, with the former being more because you got the money which is normally set aside to pay for your holiday days. This is now not possible, as a 'temp' you have to be encouraged to take leave so you can now only get the holiday exclusive rate.

You probably have to take this matter up with the EU if you want something done about it