Am I being paid below minimum wage?

[leestafford]

I am working for a teaching agency.
I work 7.5 hours per day.
I am paid £61.50 per day; £54.88 wages and £6.62 holiday pay: Stated on my payslip.

If I am entitled to holiday pay (ref: latest government advert), this means I'm getting £54.88 for 7.5 hours = £7.31 per hour.

Or... does the holiday pay make up part of the rate.

Any advice appreciated. Thanks, in advance.

[ULA]

You need to check the contract you have with your specific agency as this should detail how they manage holiday pay however it looks like they are working a system called “rolled up” holiday pay, i.e. whereby they increase your hourly rate by 12.07% to represent pay due in respect of holiday periods. In effect, you receive an enhanced hourly rate to compensate for the fact that holiday pay will not be paid when holiday is taken. The European Court of Justice (ECJ) has ruled in Caulfield v Hanson Clay Products Ltd (formerly Marshalls Clay Products Ltd) that the practice of paying workers rolled-up holiday pay is unlawful, unless the system for making the payment is sufficiently transparent and comprehensible which by separating out the details of the payments on your payslip is acceptable.

In regard to the calculation my view is that as an agency worker you are entitled to be paid at least the minimum wage and holiday pay whilst you are on leave. If your agency is working on a basis of rolling up rather than paying you when you go on holiday then in my view this should be the 12.07% calculation on the minimum wage for your age group.

I would suggest that speak to the agency and ask them to explain the basis of their calculation. You can always come back here once you have spoken to them to get some guidance on what they have said.