Question regarding PAYE and holiday pay

[BlasterBates]

You don't need to worry, the holiday accrual will be accounted for and payed out either for holidays taken or at the end of the contract. You just need to check and clarify if there is a discrepancy.

[Lance]

What is a holiday ?


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You know when you can’t be arsed to do anything, but you’re nowhere near your home?

That’s a holiday.

[GhostofTarbera]

What does your agreement with them say?
I think it says a percentage. That you agreed to.
You might not like it but that’s a bit late.

Suck it up or quit.

Note. You’re an employee not a contractor.

What is a holiday ?


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[Lance]

As a contractor, I don't especially care if I don't accrue extra holiday hours for any occasional overtime worked, but when the agency is deducting a percentage amount from my 'headline' hourly rate instead of a fixed sum per week, I think it should do so.

Otherwise they should only deduct the amount sufficient to pay me the statutory minimum under WTR...

What does your agreement with them say?
I think it says a percentage. That you agreed to.
You might not like it but that’s a bit late.

Suck it up or quit.

Note. You’re an employee not a contractor.

[whitewater]

Not my area of expertise, but as I recall holiday entitlement is on a per day worked basis immaterial of any overtime rate paid for that day.

Ask the agency for a breakdown. At the end of the day, as your employer, they are legally obliged to get it right.

As a contractor, I don't especially care if I don't accrue extra holiday hours for any occasional overtime worked, but when the agency is deducting a percentage amount from my 'headline' hourly rate instead of a fixed sum per week, I think it should do so.

Otherwise they should only deduct the amount sufficient to pay me the statutory minimum under WTR...

[Lance]

Not my area of expertise, but as I recall holiday entitlement is on a per day worked basis immaterial of any overtime rate paid for that day.

Ask the agency for a breakdown. At the end of the day, as your employer, they are legally obliged to get it right.

[whitewater]

I'm currently being paid for my contract under PAYE, so the agency deducts a portion of my hourly rate in order to pay my holiday pay under the WTR regulations...

The 'Hourly Rate' is £24.21. This is not the actual hourly rate before tax, because the agency deducts £97.79 after a 37.5 hour week and each week credits my holiday account with 4.53 hours, so when I'm not working they can pay me, presumably at £97.79/4.53 = £21.60 per hour.

This makes sense because my overall hourly rate £24.21 x 37.5 = £907.88, minus the agency deduction of £97.79 for 4.53 hours of holiday pay at £21.60 per hour leaves £810.09, which spread out over the 37.5 hours worked is £21.60.

However, on the recent bank holiday, the client was paying an advanced rate of triple time, with the other four days at normal rates. The agency knocked off £136.91 this time, but still only credited me with the 4.53 hours of holiday pay, so I've lost £30.22 for each hour accrued.

I'm concerned that this will potentially result in me being stiffed when it comes to the time for me to take holiday because I've paid more per hour for it, but they won't be paying my holiday at the enhanced rate, just my normal rate of £21.60 per hour.

My questions before I go to the agency...

Is this correct, or should the agency have accounted for triple holiday entitlement for that day [total of 6.34h ((4.53/5) x 7) for the week]?

Am I entitled to get the full cash amount I paid in back as holiday pay, or just however many hours I've accrued at 4.53 hours per week at the normal rate of £21.60 per hour?

Thanks