Agency Worker Holiday Entitlement

Agency workers in the UK are entitled to statutory annual leave of 5.6 weeks (28 days) accrued based on hours worked, with holiday pay based on average earnings.

Key Takeaways

• Agency workers accrue holiday based on hours worked for each assignment
• Holiday pay is calculated using the 52-week average reference period
• The Agency Workers Regulations 2010 protect agency workers’ leave rights
• Accurate record keeping is essential for both agencies and hirers
• Rolled-up holiday pay is prohibited for agency workers

How Agency Worker Holiday Works

Agency workers have specific leave entitlements under UK employment law:

Entitlement

• Statutory minimum — 5.6 weeks (28 days for full-time equivalent)
• Accrual basis — Based on hours worked for each assignment
• No qualifying period — Entitlement begins from day one of assignment

Accrual Calculation

Holiday accrues at 12.07% of hours worked:

• 5.6 weeks ÷ (52 weeks - 5.6 weeks) = 12.07%

Holiday Pay Calculation

For Fixed-Term Assignments

Holiday pay is based on average weekly earnings over the previous 52 weeks.

For Ongoing Assignments

When an assignment ends, accrued but untaken holiday must be paid.

Key Rules

Employment Agency Obligations

• Track hours worked — Accurate time recording for each assignment
• Calculate accrual — Apply 12.07% to all hours worked
• Pay holiday pay — Either when leave is taken or at assignment end
• Provide records — Give workers information about their entitlements

Hirer Obligations

• Allow leave requests — Cannot refuse reasonable holiday requests
• Provide access to information — Agency must have access to hours worked
• Cooperate with leave requests — Ensure agency workers can take leave

Common Issues

Managing Agency Worker Leave

Effective management of agency worker leave requires:

• Time tracking systems — Record all hours worked for each assignment
• Accrual automation — Calculate 12.07% automatically
• Payroll integration — Ensure correct holiday pay calculations
• Communication channels — Clear process for leave requests
• Record keeping — Maintain accurate entitlements for each worker

Compliance Checklist

• Time recording system in place for agency workers
• Holiday accrual calculated at 12.07% of hours worked
• Holiday pay based on 52-week average
• Rolled-up holiday pay not practiced
• Leave requests handled fairly
• Records maintained for each assignment
• Workers informed of their entitlements