Temporary workers usually have a contract with an agency but work on a temporary basis for an employer. This differentiates them from full-time employees and the self-employed.
The Agency Worker’s Regulations (2010) which details a worker’s rights, state
that all temporary workers are entitled to a minimum of 28 days holiday a year, pro rata. As temporary workers may not have consistent hours, many do not understand how to calculate their holiday pay and entitlement. Holiday pay is accrued at a rate of 12.07 per cent of gross pay, therefore it is important that workers keep a detailed record of their earnings.
To put this into context, if a temporary worker is paid £8.05 per hour they will accrue holiday pay at the rate of just over 97p per hour. Keeping a record of how many hours they have worked may also be useful for temporary workers, but is not essential for calculating holiday pay.
Twelve weeks
Although holiday pay begins accruing immediately, after twelve weeks a temporary worker is entitled to the same working conditions and basic pay, or to be paid within the same salary bracket as a permanent member of staff doing comparable work. In terms of holiday pay, this means if permanent workers are entitled to more than the minimum of 28 days paid holiday, a temporary worker should receive the same if they have been working for more than twelve weeks.
However, employer benefits which are calculated through a payroll system, such as healthcare might not be offered to a temporary member of staff. After twelve weeks if a temporary worker is with the same agency they will be enrolled onto an auto enrolment pension.
