Holiday Pay – Court of Appeal Judgment Gives Access to Justice for Contractors

On 1st February 2022 the Court of Appeal in the case of Gary Smith V Pimlico Plumber Limited has provided a huge victory for umbrella contractors as:

  • They now have the legal right to claim for unpaid Holiday Pay for the entire time it has not been paid – which could be many years and 10’s of thousands in compensation in some cases
  • It puts a stop to umbrellas wriggling out of paying Holiday Pay because of unfair legal jargon in contracts – which means they cannot illegally add Holiday Pay to their profits
  • Umbrellas will be liable if they did not take proactive and transparent steps to ensure Holiday Pay was paid – it is well known in the sector that many umbrellas did the complete opposite

Mr Smith’s legal battle was long and complex in order to achieve success, and whilst many of the issues are not relevant to umbrella employees, the Court of Appeal’s findings in relation to Holiday Pay most definitely are. Contractor Voice believes that they will pave the way for thousands of contractors to achieve the justice and compensation that they deserve.

The primary focus of Contractor Voice has been for contractors to be treated fairly and legally in relation to Holiday Pay, exposing the ways in which some umbrellas have tried to avoid paying, as we explained on our Holiday Pay page. This was first exposed in March last year by the BBC Radio 4 Moneybox programme when FCSA umbrellas were the focus; have a listen to it on our Holiday Pay page.

News of the judgment has spread fast across the sector, with many commentors speculating that it will result in financial ruin and the end for the unscrupulous umbrellas that have illegally, and some might say stolen, retained Holiday Pay for their own financial enrichment.

Whether you are still working with your umbrella or have left, we again urge all contractors to contact their umbrellas without any delay to make a claim if:

  • Holiday pay was not clearly shown on your payslip each week that you worked
  • Or when you actually took time off for a period of holiday leave and not been paid Holiday Pay
  • Or if you have not taken any time off and not been paid accrued Holiday Pay
  • Or you were not paid the correct amount

Contractor Voice has been working on class action claims against offending umbrellas since we started, so to join the swelling ranks of other contractors that have not been paid Holiday Pay, contact us to provide your details and let us help you achieve the justice you are entitled to.

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