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Originally, rolled-up holiday pay in the UK was deemed "unlawful" but last year the change was announced alongside a raft of other proposals as part of the Government’s plan for "smarter regulation" after leaving the European Union (EU)
The HMRC published guidance for recruitment firms engaging with umbrella companies.
The government has come under fire after publishing guidance on umbrella companies deemed inadequate by payroll experts.
Umbrella company compliance specialist, PayePass, has welcomed the news that the government will make ‘rolled-up holiday pay’ lawful for the UK’s 1.6m temporary workers – in turn, handing irregular-hour workers and part-year workers an earnings boost worth thousands.
Irregular-hour workers in the UK will be entitled to receive holiday pay ‘rolled-up’ as part of their pay, in a move aimed at ensuring short-term staff receive their holiday pay.