Anti-Slavery Day takes place every year on the 18 October. Anti-Slavery Day is part of Anti-Slavery week, a UK and European awareness week, which this year runs from 16 – 22 October 2023.
In 2010, an Act of Parliament of the United Kingdom introduced a national day to raise awareness of the need to eradicate all forms of slavery, human trafficking and exploitation. Today, we continue to raise awareness of these issues, highlighting good practice.
While the concept of ‘rolled-up’ holiday pay may seem perplexing, it still holds considerable relevance in today’s UK employment market. The idea revolves around including an employee’s holiday pay in their regular wage, rather than paying it separately when they take their annual leave.
This approach is often associated with flexibility and simplicity, particularly for contract or part-time workers. However, it’s not without its controversies and legal implications, thus necessitating a comprehensive understanding. Our aim in this article is to shed light on the concept of rolled-up holiday pay, its benefits, drawbacks, and its place in the contemporary UK market.
“Rolled-up Holiday Pay” is a practice where businesses encompass holiday pay within the regular pay of their workers, instead of disbursing it when the employees take their actual leave.
Despite the ruling in the Robinson-Steele v PD Retail Services case [2006] by the European Court of Justice, the practice of ‘rolled up’ holiday pay still endures in the UK market. The Court stipulates that payment for holidays should be made when the actual holidays are taken, technically rendering ‘rolled up’ holiday pay impermissible.
This ruling was instituted to ensure that workers are not dissuaded from taking their rightful time off due to concerns over finances. The continuation of ‘rolled up’ holiday pay, however, indicates a nuanced situation wherein the practicalities of the working world and the legislative guidelines seem to diverge.
The common critique against the usage of rolled up holiday pay is that it creates a financial disincentive for workers to take their rightful holidays, given they are not being compensated directly during their time off. The European Court encouraged EU member states to take decisive action to terminate this practice. Despite this exhortation, the UK government has yet to promulgate legislation expressly prohibiting the use of rolled up holiday pay.
However, in non-statutory guidance, the government has asserted that any contractual arrangements involving rolled up holiday pay should be subject to renegotiation. This demonstrates the ongoing tension between efforts to ensure fair compensation for workers and the practical considerations of payroll management.
Businesses that employ casual and/or zero-hour contract workers often prefer to use the ‘rolled up’ holiday pay system. The primary reason is convenience. The calculation of a flexible worker’s holiday leave entitlement, along with the corresponding pay, can be a complex and time-consuming administrative task.
This complexity is amplified by the fluid nature of casual and zero-hour contracts, where work hours can fluctuate significantly from week to week. Furthermore, considering annual leave can create complications when scheduling work rotas. By incorporating holiday pay within the standard pay, businesses find a streamlined solution that circumvents these challenges, despite the potential legal ambiguities involved.
Employers who choose to implement ‘rolled up’ holiday pay run the risk of potential double payment. If a worker is able to effectively demonstrate that the structure of their pay has discouraged them from taking their legally entitled holidays, they might be eligible for ‘just and equitable’ remuneration. Consequently, the employer could end up compensating the worker twice for the same holiday period – once within the ‘rolled up’ holiday pay and a second time as a compensatory measure.
An additional implication could be that workers are allowed to defer their holiday entitlement to the subsequent holiday year. If these workers then decide to leave the organisation, they retain the right to demand a payout in lieu of their unused holiday time upon termination of their contract. Hence, while ‘rolled up’ holiday pay may initially appear to streamline administrative processes, it also poses considerable monetary risks for employers.
Additionally, for workers with irregular hours, the ‘rolled up’ holiday pay system may not always equate to an accurate reflection of their holiday pay entitlement. Factors such as fluctuations in their work hours can lead to miscalculations, resulting in either insufficient or excessive payment. This inconsistency can bring about the risk of claims against the business for unlawful deductions of wages. If a worker believes they have been underpaid, they may choose to take legal action, further complicating the scenario for the employer.
On the flip side, if the worker has been overpaid due to inaccuracies in the ‘rolled up’ pay calculation, it creates a financial burden on the business. This highlights yet another risk factor employers must consider when opting to use the ‘rolled up’ holiday pay system.
For businesses choosing to implement the ‘rolled up’ holiday pay system, transparency and clear communication with their workforce is paramount. An initial step in this direction would entail introducing the usage of rolled up holiday pay as part of the recruitment process. Prospective employees should be made aware of this practice from the onset, and written confirmation must be obtained from them indicating their understanding and acceptance of this payment model.
It is essential to emphasize here that, while workers can choose to accept their holiday pay being rolled up into their standard pay, they retain the right to opt for paid annual leave at any point in the future. Nevertheless, it is worth noting that, as per the European Court of Justice, workers cannot completely waive their holiday pay rights. No matter the pay structure in place, these rights remain inviolable and mandatory, thereby ensuring that workers are not disadvantaged in any way.
In essence, while the ‘rolled up’ holiday pay system may provide administrative convenience for employers, its use necessitates open dialogue and mutual agreement with employees to avoid misinterpretation, ensure compliance with the law, and maintain industrial harmony.
As a crucial step towards transparency, employers using the ‘rolled up’ holiday pay system must ensure that payslips issued to workers clearly distinguish between holiday pay and basic pay. This distinction is not merely for clarity’s sake; it is a legal requirement for employers to provide itemised payslips. The payslip should explicitly break down the payment, stating the specific amount attributed to basic pay and the sum designated as holiday pay.
This practice helps to avoid any confusion or disputes regarding payment, enabling workers to fully comprehend their compensation structure. Moreover, it allows for better tracking and validation of whether the holiday pay component aligns accurately with an employee’s entitlement based on their working hours. It is, therefore, paramount for businesses to incorporate this step into their payroll process, ensuring a more transparent and just system.
Lastly, under no circumstances should businesses prevent workers from taking their annual leave. In fact, businesses should ideally adopt a proactive approach in encouraging their flexible staff members to take their holidays. The significance of this cannot be overstated. Holidays are an essential part of maintaining a healthy work-life balance; they provide workers with the opportunity to rest, recharge, and return to work with renewed vigor. As such, businesses must foster a culture that promotes and values time off.
This could involve periodically reminding workers of their remaining holiday entitlement, or perhaps even implementing a system that highlights upcoming periods of lower workload, when taking leave could be most beneficial. Ultimately, the aim should be to create a supportive environment where workers feel comfortable taking their earned leave without fear of repercussion or negative impact on their job security.
It has been reported today with surveying of businesses across the UK that a whooping 76% of UK companies are struggling to hire new staff.
Recruitment being a hot topic in the news at the moment with 3 in 4 companies struggling to recruit and retain staff which is a massive number and with the market still being candidate led, what can companies do to attract and retain staff.
Years back candidates went where the money was but now we are finding although having a great salary and benefits, company culture is what is important, staff stay or go where they feel most valued and respected.
So what can you implement in your business to ensure you attract and train your staff?
Culture:
Culture is everything and ensuring staff feel happy, valued and respected within the business and amongst colleagues is key, so what can you do to ensure your staff are happy within the work place. Having open door policies, staff want to be able to address and raise concerns without feeling penalised, likewise they want to ensure they can share ideas and thoughts openly and feel they are being listened too. Offering staff flexibility, work life balance and not to feel micro managed. Having team events / team building exercise and most importantly, have a work hard play hard culture, get the job done but ensure staff can laugh and enjoy along the way.
Salary and Benefits:
Of course this one will be up there in key ways to attract and retain staff and its a pretty simple one to navigate, having an attractive salary within a job role of course will attract candidates to the role. Go above the average for that role, pay staff their value along with additional incentives such as increased holiday entitlement, discounted perks, life style benefits, bonuses and ensure these are regularly reviewed. You will be surprised the return you will get from an employee when you pay they what they deserve with additional incentives.
The Recruitment Process:
So you have had a lot of candidates apply for the job role, don’t wait around to short list as good candidates won’t stay on the market for long, so get interviews lined up in your diary. There is nothing worst to candidates than a lengthy and drawn out recruitment process, if you are taking a long time to get back to candidates or having a extremely long interview process such as multiple interviews / tests and so on, it can put candidates off. a one or two stage interview process we thinks works well in keeping candidates engaged, anything longer than this, you may risk loosing candidates interest.
If you want to have a chat with one of our friendly consultants who can work with you in offering advice on ways to improve candidate attraction and retention then get in touch today.
1.33 million people were unemployed; 23.5% have been unemployed for more than 12 months and a 0.1% increase on previous quarter
We are proud to be celebrating 25 years within the recruitment industry this week on Friday 5th May, and wanted to take this opportunity to say a big THANK YOU to all our past and present work colleagues, candidates, and clients.
Throughout these 25 years, we have been through recessions, and a pandemic and seen the recruitment industry change rapidly over the years. However, we are pleased to say one thing that has not changed is commitment and focus in finding the right candidates for the right job and that has been our mission for over a quarter of a century.
It has been hard work, working long hours, ensuring we are available out of hours 24/7 to give our clients and candidates the service they deserve but would not change it for the world.
We have laughed, we have had fun and we have met some great characters and we look forward to continuing to provide a quality service to our clients and candidates.
So once again THANK YOU for all your support and here is to the next 25 years.
The Coronation of His Majesty The King will take place on Saturday 6th May 2023.
The Coronation Ceremony will take place at Westminster Abbey, London, and will be conducted by the Archbishop of Canterbury.
The Ceremony will see His Majesty King Charles III crowned alongside The Queen Consort.
The Coronation will reflect the monarch’s role today and look towards the future while being rooted in longstanding traditions and pageantry.
King Charles III, formerly known as The Prince of Wales, became King on the death of his mother Queen Elizabeth II on 8 September 2022.
In addition to his official and ceremonial duties in the United Kingdom and overseas as The Prince of Wales, His Majesty has taken a keen and active interest in all areas of public life for decades. The King has been instrumental in establishing more than 20 charities over 40 years, including The Prince’s Trust, The Prince’s Foundation and The Prince of Wales’s Charitable Fund (PWCF).
His Majesty has worked closely with many organisations, publicly supporting a wide variety of causes relating to the environment, rural communities, the built environment, the arts, healthcare and education.
As Their Majesties’ Coronation draws closer, read on for 25 fun facts about The King.
We will be closed May 1st, 2023 May Bank Holiday
We will be closed May 8th, 2023 Kings Coronation Bank Holiday
We will be closed on May 29th 2023 Spring Bank Holiday.
3 Ways a Recruitment Agency can support your business.
When it comes to recruitment and hiring it can often become a stressful and time-consuming process with some businesses not knowing where to start or simply not having enough time to sift through applications, arrange interviews and ultimately find the right person for the job.
This is where an agency comes in, an agency will work with you in finding out exactly what you need in terms of candidate skills, experience and personality fit. Taking the stress away from the recruitment process and freeing up your time to focus on your business.
Here are just 3 ways a recruitment agency can add value to your business.
Candidate Attraction – giving you access to a higher pool of candidates.
Direct Response will manage the whole process on attracting candidates for your job role. We will create an eye-catching job description, showcase what you have to offer and advertise these across a wide range of job boards and social media channels ensuring your job is seen by those looking for new opportunities.
At Direct Response we all have established a large database of candidates over the years meaning we have access to candidates who may not be active on the job market but could have the skills you are looking for, giving us a greater pool of candidates to approach on your behalf.
We Manage the process for you.
Having to sift through a large number of applications can be time consuming, but here at Direct Response we will handle all that for you. We will manage all applications and short list candidates who are suitable for the role. We will pre-screen all candidates, discussing the role in detail, salary expectations and so on before sending all suitable candidates over to you attached with a CV and profile detailing their suitability for the role.
Once you have selected which candidates you would like to interview, we will manage the interview process for you, scheduling and assisting with the all-important interviews.
Offer, Rejection and Negotiation.
So, you have found a candidate you would love to join your business and its time to make an offer, we will support your business in making that all important job offer.
Direct Response will assist with the whole offer, negotiating salary, carrying out references checks and supporting with the onboarding process of your new recruit.
We will also ensure any candidates you have been declined during your recruitment process are informed within a polite manner so you can concentrate on what you do best within your company.
If you would like to find out more about how Direct Response can support your business, then get in touch with us today to see how we can help.
Just a reminder to all of our temporary workers that we are coming up to the end of the financial year, so all holidays need to be taken before April 6th, 2023. This would have been explained to you at registration and detailed in the application and induction process.
It is your responsibility to ensure that all holiday is taken before the end of the Financial Year 6th April.
