Holiday Pay Update

New guidance published for temps during furlough

The Recruitment and Employment Confederation (REC) has welcomed the publication of guidance on the issue of holiday accrual for furloughed temporary workers who are on a contract for services.

Neil Carberry, chief executive of the REC said:

“It has taken time and effort, but we are really pleased to see this new guidance from the Government. It confirms the status of holiday pay accrual for temps and will hopefully remove the huge cost barrier to higher rates of furlough that many agencies faced before now. It is now clear that holiday pay does not accrue for those temps who are on a contract for services at all. The guidance also confirms for those on contracts of employment, holiday will accrue as per their contracts, treating furlough as the same as a period not on assignment. Any holiday pay that does accrue because of the unique terms of individual agencies, can be reclaimed at 80% under the CJRS. We’ll look at what further steps can be taken to support these firms.

“At long last, this brings the clarity that the REC has been campaigning hard for over the past few weeks.”


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