The big picture: The UK government has legalized rolled-up holiday pay for agency workers, including umbrella workers, a move strongly supported by the Association of Professional Staffing Companies (APSCo). This decision follows APSCo's active advocacy in consultation responses.

Why it matters: This change simplifies holiday pay administration for staffing firms and provides much-needed clarity for contingent workers, potentially impacting operational costs and compliance strategies.

Between the lines:

• Rolled-up holiday pay allows employers to include an amount for holiday pay directly in a worker's regular pay rate.
• The new legality applies specifically to agency workers and those employed via umbrella companies.
• APSCo actively campaigned for this legislative change, viewing it as a significant win for the staffing sector.

Staffing & HR impact: Staffing firms must update payroll systems and contracts to reflect the new legality, ensuring compliant calculation and disbursement of holiday pay. This could streamline administrative burdens and reduce potential legal challenges related to holiday pay for contingent staff.

The bottom line: A long-standing industry ask has been met, bringing welcome clarity and flexibility to contingent worker compensation.