Holiday Pay Actually Grows Into Your Paycheck – A Welcome Surprise for Flexible Workers
Starting on 1 April, the UK government has rolled out a brand‑new rule that lets irregular‑hours workers get their holiday pay added straight to their regular wages. Gone are the days of juggling pay slips and fighting employers to get that elusive “time‑off” money.
What the new rule brings to the table
- Transparent payouts – Your holiday allowance is now automatically bundled into every paycheck.
- Guaranteed entitlements – Irregular‑hours employees (those with “wholly or mostly variable” work patterns) finally get the same paid holidays they already enjoy at full‑time jobs.
- More than a few thousand saved – Many workers report that, before this change, they’d miss out on thousands of pounds each year because agencies quietly withheld holiday pay.
- Cleaner reporting – The rule forces agencies and umbrella contractors to be clearer about when and how pay is distributed.
Why Qdos is shouting “Yes!”
Ben, the boss of Qdos – the flexible‑work insurance firm – is over the moon. In his words:
“Making rolled‑up holiday pay lawful is excellent news – a real win for the more than a million people working through agencies and umbrella companies.”
“Before, it was easy for shady providers to keep that money under the table. Now, it’s part of your pay packet so it hits your bank directly. That means a real boost of thousands of pounds a year.”
He added that this step should be the first in a broader push: stronger regulation of the umbrella sector, tighter enforcement of late payments, and a fresh look at the fallout from the IR35 reforms.
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