Holiday Pay for Temporary Staff
Monday 9th September 2019
Does your recruitment software or payroll software handle temporary holiday pay? I get asked this a lot from temporary recruitment agencies and unfortunately not all recruitment software providers out there successfully come up with the goods to satisfy the requirement.
Holiday pay for temporary workers is not a simple calculation. It would be if it was done in a set way however when AWR (Agency Worker Regulations) was introduced it further complicated things because you had to offer parity of holiday pay as well as parity of pay after the 12-week period. Meaning that you had to potentially accommodate different holiday schemes for each worker for each client after their 12-week period. So rather than just being the standard 28 days annual leave and 12.07% of their pay, it could be for example, 31 days holiday after parity at 13.54% when they work at that company and this differs from client to client requiring you to administer multiple holiday calculators for each client.
Then there's the argument that you may only wish to calculate holiday pay only on certain rates, such as basic only where overtime maybe considered as 'irregular hours' therefore you may require that your recruitment software offers the ability to tag which rate types you wish to include in the calculation or not, again this can vary from client to client. Of course, you should always seek legal advice on this topic especially when the law may see all earnings being included in the holiday calculation.
You may want your recruitment software to operate a fixed holiday year for all (such as from April to March) or you prefer to operate a separate anniversary per worker so that each person has their own holiday year according to their start date.
PrimePRO recruitment software offers temp agencies the solution for accruing and administering holiday pay for temporary workers, giving you the flexibility for it to process different client specific schemes pre and post AWR.