We all recall the Taylor Review, published in July 2017, which looked at the labour market and provided a number of recommendations for workplace reform, addressing the status issues for atypical workers in the gig economy and agency workers.
One such recommendation was a review on holiday pay. Following which, there has been much research into this area. The most concerning of which was the Unpaid Britain Report, published by Middlesex University and Trust for London which concluded that circa 1.8 million workers in the UK are not receiving their holiday pay which apparently equates to £1.8B per year.
Other research, conducted by Kantar Public, concluded that out of 2,154 UK workers:
- 50% of participants incorrectly thought that those on zero-hour contracts were not entitled to holiday pay
- 52% of participants incorrectly thought that they had to work for three months before they were entitled to holiday pay.
From the above, the Government has concluded that there is an “alarming lack of awareness” in relation to holiday entitlement.
To tackle the problem and improve awareness, the Department for Business, Energy and Industrial Strategy (BEIS) has released new guidelines and an online entitlement calculator in order to assist both employers and employees to calculate holiday pay, please click the links below for the guidance.
Further, the Government has launched it’s “it comes with the job” campaign. The campaign intends to provide accessible information in the form of:
- video on-demand
- Spotify advertising
- digital website and social media advertising
- train station and street advertising.
Holiday pay can be tricky and the additional guidance from the government is invaluable to employers to assist them in making informed decisions about holiday pay.
If you would like to discuss anything in this article or ask questions on how holiday pay works in your organisation then please do not hesitate to contact a member of our team.
For more information please visit the pages below.
Gov.uk - Government has launched its first holiday pay advertising campaign.
Gov.uk - Calculating holiday pay for workers without fixed hours or pay.
Gov.uk - Calculate holiday entitlement.