Britain’s 1.6m temp workers risk missing out on close to £100m in unclaimed holiday pay
Amid a 40-year inflation high, soaring energy bills and rising mortgage payments, Britain’s 1.6m temporary workers have been urged to claim an estimated £97m worth of unclaimed holiday pay from employment agencies and umbrella companies engaging them.
The urgent call comes from a support group for independent workers, IWORK, that has brought to light that many of the UK’s flexible workforce are missing out on their statutory right to paid holiday every year.
IWORK told City PM today it is raising the alarm that temporary workers – many of whom operate through umbrella companies and employment agencies – are not being made aware of their right to receive holiday pay. And if they don’t know they should be receiving paid holiday, they are unlikely to be claiming it.
For example, if just 2 per cent of the UK’s temp population is missing out on a £3,000 annual holiday pay entitlement, based on an average annual salary of £26,000, then £97m is being unclaimed in the UK alone.
“£97m is a staggering figure, but in reality, it’s very likely just the tip of the iceberg,” said IWORK founder Julia Kermode.
“With the cost of living crisis taking hold and people spiralling into debt, it’s vital that temporary workers claim what’s rightfully theirs – especially when taking some time off this Christmas, which is by far the most expensive time of the year,” she said.
“It’s a little-known fact that the UK’s 1.6 million temporary workers* are entitled to receive the same annual holiday as employees.”
Julia Kermode
“Yet most temps – who often move immediately from one assignment to another – don’t know they should be claiming it,” Kermode continued.
“And all too often, they aren’t helped by a minority of unscrupulous agencies and umbrella companies that hide the fact that temps have a right to paid holiday in the small print of their terms.”
“Temporary workers are incredibly valuable to the economy. They’re an unseen army of unsung heroes who prop up businesses in their times of need. But they’re at risk of being exploited.”
She added: “Of course, this practice isn’t representative of all umbrellas and recruitment agencies. So, along with encouraging temps to claim paid holiday, we are stressing the importance of compliant umbrella companies and agencies ensuring these workers receive what’s owed to them.”
The campaign’s call to action for temporary workers to kickstart holiday pay-related conversations with their respective engagers is underpinned by the hashtags #doyougetyours and #askforitgetit.