Holiday and bank holiday entitlements as an agency contractor

conf101

Hi,

Looking for advice on bank holiday and paid holiday entitlements as an agency contractor.

I just started a role as an agency contractor being paid a daily rate. I was offered the role by an agency and signed up as a PAYE employee with an umbrella. The company I'm contracted to pay the recruitment agency, who then pay it to the umbrella company, who deduct tax, USC, etc. and then pay me.

The umbrella company have told me that as a contractor on a daily rate I have no entitlement to paid holidays or paid bank holidays. I was under the impression that as a full-time employee I was entitled to both. Can anyone clarify the situation? Also, if I am entitled to paid holidays and bank holidays, who do is responsible for the payment - the umbrella company?

Thanks in advance!

Atlantic Dawn

From anyone I know who works a similar setup they get no paid holidays or bank holidays.

uck51js9zml2yt

You are effectively self employed. You have no entitlement to paid holidays , bank holidays etc.
Its down to you to make sure you have these worked into your daily rate so you're covered.

goldenhoarde

You get paid by the umbrella company based on the days worked only! They may or may not retain some % for holiday so you are best to chat to them about this (sounds like they are not doing this for you at present). if they do this then your pay will be reduced but you will get paid for bank holidays etc as and when they arise out of this fund.

Long story short - PAYE people are entitled to 21 days + 9 bank holidays so that's 30 per year or 2.5 days a month so you need to put that away (either yourself or the umbrella if they provide this facility) and then dip into it for holidays as needed. As tatranska says your daily rate should be covering this

conf101

Emmeline Modern Movement wrote: »

You are effectively self employed. You have no entitlement to paid holidays , bank holidays etc.
Its down to you to make sure you have these worked into your daily rate so you're covered.

But the whole point of going as a PAYE employee with the umbrella company is to avoid being self employed.

It's my first time contracting so there's a certain element of learning as I go.

Mrs OBumble

conf101 wrote: »

But the whole point of going as a PAYE employee with the umbrella company is to avoid being self employed.

The UC will automatically tell Revenue that you are their employee, and they will take the costs of Employer Class A PRSI contributions out of what the agency pays you, and send it to Revenue / Welfare.

However if you want them to also pay you annual leave, bank holidays etc, then you need to ask them to take out money for this also, and to pay it out to you appropriately. Many people don't want them to do this, they would rather get the cash up front and only get paid for what they actually work.