Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Agency workersLatest NewsEmployment tribunalsFurloughHolidays and holiday pay

Agency worker did not accrue holiday pay on furlough

by Ashleigh Webber 2 Jul 2021
by Ashleigh Webber 2 Jul 2021 Acorn1/Alamy
Acorn1/Alamy

An employment tribunal has ruled that an agency worker who received work assignments through a flexible workforce supplier did not accrue holiday pay while he was on furlough.

The Recruitment and Employment Confederation (REC) said the ruling, in the case of  Mr D Perkins v The Best Connection Group, provided recruitment agencies with “much needed” clarity about entitlements during furlough.

Perkins, an agency worker who carried out assignments for The Best Connection Group, brought a claim for unpaid holiday pay while he was furloughed under the Coronavirus Job Retention Scheme (CJRS) from May to July 2020. He was seeking £261 in lost wages and £261 in accrued holiday pay.

The tribunal judge agreed with The Best Connection Group that he was not a “worker” for the purposes of the Working Time Regulations 1998 for the period that he was on furlough, and therefore did not accrue holiday pay during this time.

Furlough and holiday pay

Temp worker wins holiday pay accrued on furlough
Annual leave and furlough under the Coronavirus Job Retention Scheme

The Cardiff tribunal came to this conclusion because Perkins’ contract with the agency only existed when he was on assignment with a client, and not between assignments.

The agreement between Perkins and the agency said that he would not “receive payment from TBC or its clients for any time not spent on assignment whether in respect of holidays, illness or absence for any other reason.”

The claimant admitted that he had not accrued holiday pay while he was not working on assignments for the company prior to the furlough period.

Employment judge Rachel Hartfield agreed that the terms and conditions signed by the claimant were clear that he would not accrue holiday pay when not on assignment.

Government guidance says: “Some agency workers on a contract for services may not be entitled to the accrual of holiday or to take holiday under the Working Time Regulations while on furlough because they are not workers or treated as workers under those regulations when between assignments or otherwise not working on assignments.”

Lorraine Laryea, director of recruitment standards and compliance at the REC, said the issue of holiday pay posed a challenge for recruiters when the furlough scheme was introduced.

“The REC lobbied the government extensively to release guidance on exactly this, which resulted in advice being published in May 2020. However, this isn’t statutory guidance and it’s important to bear in mind that the judgment is a first instance decision, meaning that other employment tribunals presented with similar cases could reach a different decision,” she said.

“However, the analysis in this case, which draws out the specific nature of temporary workers on contracts for services and the interaction with the holiday pay legislation and furlough provisions, is compelling and in the view of the REC more accurately reflects how the law should apply in these types of claims.”

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

In May an employment tribunal found that a temporary worker had been entitled to holiday pay while she was on furlough. The recruitment agency, Start People, claimed that the worker’s contract did not state she would be paid holiday pay between assignments. However, the tribunal found that the worker’s assignment for the end client had not finished.

Recruitment and resourcing opportunities on Personnel Today


Browse more recruitment and resourcing jobs

Ashleigh Webber

Ashleigh is a former editor of OHW+ and former HR and wellbeing editor at Personnel Today. Ashleigh's areas of interest include employee health and wellbeing, equality and inclusion and skills development. She has hosted many webinars for Personnel Today, on topics including employee retention, financial wellbeing and menopause support.

previous post
Clarks staff consider strike over ‘fire and rehire’ threat
next post
Executive support roles to be culled at Deloitte

You may also like

Five years on: how has work changed since...

12 Mar 2025

Tax fraud whistleblowing rises by 70%

14 Oct 2022

Nearly 14,000 whistleblowing reports of furlough fraud received...

11 Aug 2022

‘Low flight risk’ designer wins £100k age discrimination...

5 Jul 2022

How to respond to an HMRC furlough enquiry

18 May 2022

P&O Ferries told to return £11m furlough money...

28 Apr 2022

Single parents need urgent support to re-enter work

11 Mar 2022

MPs press HMRC to recover furlough funds lost...

11 Feb 2022

Nursery worker dismissed while pregnant was discriminated against

7 Feb 2022

Treasury writes off three-quarters of Covid support grants...

17 Jan 2022

  • 2025 Employee Communications Report PROMOTED | HR and leadership...Read more
  • The Majority of Employees Have Their Eyes on Their Next Move PROMOTED | A staggering 65%...Read more
  • Prioritising performance management: Strategies for success (webinar) WEBINAR | In today’s fast-paced...Read more
  • Self-Leadership: The Key to Successful Organisations PROMOTED | Eletive is helping businesses...Read more
  • Retaining Female Talent: Four Ways to Reduce Workplace Drop Out PROMOTED | International Women’s Day...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+