Holiday entitlement and the Working Time Directive

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Opinion

In our opinion, the practice of deducting holiday entitlement from a freelancer's rate is a cynical workaround by employers, in order to discharge the responsibility imposed on them by the Working Time Directive. It is an attempt to respect the letter of the law while frustrating its spirit - the spirit which says that all workers should receive four weeks of holiday, paid at their basic rate, by their employer, and not by themselves.

The intention of the original Directive is that no situation should lead to workers being discouraged from taking holiday time. But the practice of deducting holiday pay from within a freelancer's rate means that from a financial point of view, payment in lieu has actually become a more attractive alternative than taking the holiday during the contract. Getting to the end of a contract without taking any paid holiday is the only way that a freelancer can recover what he considers to be his full rate.

At the moment we have a system of arbitrary inconsistency, where some employers give their workers the entitlement to paid holiday on top of their rate, and others don't, whether due to policy or budget. But paid holiday time is a legal liability, not a luxury to be determined by how rich the employer is feeling at the time - and certainly not a liability which the freelance community should be subsidising.



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