Over one million workers could be "thousands" better off under new holiday pay rule proposals which have been announced.
At the moment, many temporary workers are missing out on holiday pay, despite being entitled to it.
The reason why many miss out on the money is that they don't know they can get it - some companies have also been found to deliberately hide that they are entitled to it.
However, under the proposals published this week, temporary employees will receive their holiday pay like permanent employees through rolled-up pay.
Currently, the majority of temporary workers accrue their holiday pay - so your pay is effectively "banked" and held until you actually take the holiday due to you.
Rolle-up holiday pay is when holiday pay gets paid to workers as part of their normal pay, so throughout their employment, as opposed to it being paid later when they take a holiday.
Rolled-up pay in the UK is currently deemed "unlawful" and the proposal was one of a raft of announcements made as part of the Government’s plan for "smarter regulation" after leaving the European Union (EU).
As of yet, it is unclear what the outcome of the proposals will be - or when new rules could come into effect.
Those missing out on their holiday pay are usually those who are employed by an umbrella company or through a recruitment agency.
Julia Kermode, founder of IWORK which is the body that champions temporary and independent workers said the announcement was "fantastic news".
The group has argued that rolled-up pay is the "only way" temporary workers receive their holiday pay.
She said: "We’ve been urging the Government to act on for some time.
"By rolling up holiday pay, temporary workers will receive it on top of their wages, which means they’re guaranteed to receive it.
"This move could boost the average temp’s pay packet by thousands every year.
“As things stand, hundreds of millions of pounds of holiday pay has been left unclaimed because temps don’t realise they’re entitled to it.
"These workers aren’t helped by the handful of unscrupulous umbrella companies and recruitment agencies that go out of their way to make sure this statutory right isn’t claimed, before keeping it themselves."
