If you're a contractor working via an umbrella company, you will likely receive holiday pay in one form or another.
You may receive it as part of your rate, known as the rolled-up method, or you may have holiday pay retained for you and paid when you take time off. As an umbrella contractor, holiday pay is a statutory right.
At Champion, ensuring that our contractors get paid their holiday pay is a priority. We offer the choice of payment methods so that contractors get paid holiday pay in a way that suits them best. Our FCSA accreditation also demands that we monitor and manage contractors' holiday pay to ensure they always get the holiday pay that they are due.
However, getting paid holiday pay is not as straightforward for all contractors.
Umbrella companies accused of profiteering from unclaimed holiday pay.
News reports and accusations have persisted in recent years, suggesting some umbrella companies have intentionally profited from contractors who have not claimed accrued holiday pay.
In short, where contractors haven't claimed their accrued holiday pay under the terms of their contract, the umbrella company has kept it for itself.
While this is not illegal, it is hugely unethical.
What should contractors know about holiday pay?
For a basic overview of all things holiday pay, why not take a look at our recent article on our website: Holiday pay - a legal entitlement for umbrella contractors
Here are three things you can also do to ensure you keep control of your holiday pay entitlement.
- Check your contract of employment.
Your contract of employment (provided by your umbrella company) should state your holiday and holiday pay entitlement and the holiday pay method (Accrued or rolled-up).
- Review your employee handbook.
Your employee handbook should include your employer's holiday pay policy, confirm when the holiday year runs from and to, and when you need to claim any accrued holiday pay by.
- Check your payslips
Your payslips should give you an up-to-date and running total of what holiday pay has been paid and what you have remaining or accrued.
Contractors always get their holiday pay with Champion
Champion pays all its contractors all of their holiday pay entitlement all of the time.
Whether it's when you take a holiday, when your assignment ends, when the holiday year ends, or even in advance using the rolled-up pay method, Champion will always pay your holiday pay.
If you have a question about holiday pay or want further information, contact the Champion Contractors team on 0161 703 2549 or email info@championcontractors.co.uk.
You can also follow us on LinkedIn or visit our website at https://www.champion-contractors.co.uk/