The employment agency has told me that they will pay me extra for holiday pay as part of my daily rate. Can they do this?

Q I have joined an employment agency and they found me a job working on contract for three months. I will be paid through the agency and have a daily rate. The agency has told me that they will pay me extra for holiday pay as part of my daily rate. This means I will have to save up my holiday pay. I am a bit worried, as I will need to be vigilant about saving my pay for holidays. Can the agency legally pay me in this way?

A No they can't - it is against the law. Some employers and employment agencies may say that your hourly or daily rate of pay includes an amount for holiday pay and that they expect you to save this part of your pay to cover your holidays. This is known as "rolled up" holiday pay. The European Court of Justice has recently ruled that it is against the law for employers to pay their employees in this way. It is only legal if your employer itemises the holiday pay seperately on the pay slip and not if the daily rate of pay is simply being increased a bit.

If your employer is paying you rolle dup holiday pay, you sholuld gat advice from an experienced adviser.

For advice and information on your employment rights search the hereforadvice directory.