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Pay roll-up obscures true employment costs

first_imgRelated posts:No related photos. Pay roll-up obscures true employment costsOn 11 May 2004 in Personnel Today Comments are closed. Rolled-up holiday pay can give an unfair advantage to temporary agenciesusing the practice and obscure costs to clients and staff, according torecruitment firm Reed Executive. The company, which does not roll up holiday pay, complained that thepractice creates an unbalanced market for temporary staff and was unfair onboth staff and clients. “Unfortunately, within the UK recruitment industry it is commonpractice for agencies to pay rolled-up holiday pay,” said Joan Edmunds,legal director of Reed Executive. “This can give such agencies acompetitive edge as temporaries believe they are receiving a higher rate of paywithout realising they will not be paid when they take their holiday. If thispractice remains widespread then Reed may be forced to reconsider its position.”We will be watching the outcome of the case [before the ECJ] with someinterest,” said Edmunds. “Reed temporaries receive holiday pay whenthey take their holiday entitlement. This encourages them to take their holidayin accordance with health and safety objectives of the legislation. Reed standsin favour of any judgment that protects temporary workers and clients. “If the judgment goes in favour of temporary workers and againstrolled-up pay, then some agencies may find themselves having to pay out holidaypay on top of what they are already paying to their temporaries – an additionalcost they should not pass onto employers.” Previous Article Next Articlelast_img read more

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