Does your recruitment software or recruitment payroll software handle temporary holiday pay?
We get asked this a lot from temporary recruitment agencies and unfortunately not all recruitment software providers out there successfully come up with the goods to satisfy the requirement.
Choosing the right recruitment payroll software can make all the difference managing complex temporary pay structures and compliance requirements.
Understanding Holiday Pay Challenges in Recruitment Payroll Software
Holiday pay for temporary workers is not a simple calculation. It would be if it was done in a set way however when AWR (Agency Worker Regulations) was introduced it further complicated things because you had to offer parity of holiday pay as well as parity of pay after the 12-week period.
Meaning that you had to potentially accommodate different holiday schemes for each worker for each client after their 12-week* period. So rather than just being the standard 28 days annual leave and 12.07% of their pay, it could be for example, 31 days holiday after parity at 13.54% when they work at that company and this differs from client to client requiring you to administer multiple holiday calculators for each client.
A modern recruitment payroll software system should be flexible enough to handle these differing rules and make these calculations more manageable.
Then there’s the argument that you may only wish to calculate holiday pay only on certain rates, such as basic only where overtime maybe considered as ‘irregular hours’ therefore you may require that your recruitment payroll software offers the ability to tag which rate types you wish to include in the calculation or not, again this can vary from client to client.
Of course, you should always seek legal advice on this topic especially when the law may see all earnings being included in the holiday calculation.
The goal of any effective recruitment payroll software is to ensure that these variations are tracked accurately without increasing admin workload or compliance risk.
Building Flexibility and Compliance with Recruitment Payroll Software
You may want your recruitment software to operate a fixed holiday year for all (such as from April to March) or you prefer to operate a separate anniversary per worker so that each person has their own holiday year according to their start date.
Having recruitment payroll software that can accommodate both approaches supports your processes, making sure they stay consistent, compliant, and adaptable to client needs.
PrimePRO recruitment software offers temp agencies the solution for accruing and administering holiday pay for temporary workers, giving you the flexibility for it to process different client specific schemes pre and post AWR.
With powerful recruitment payroll software support, temporary staffing agencies can manage pay and holiday accruals accurately, reduce errors, and build greater trust with both temps and clients.
Why Recruitment Payroll Software Matters for Temp Agencies
Managing payroll for temporary staff isn’t just about getting people paid, it’s about doing so in a compliant, efficient and transparent way.
Recruitment payroll software helps agencies navigate ever-changing rules around AWR, pensions, and holiday pay, making sure every worker receives exactly what they’re entitled to.
By adopting technology that supports these processes, recruitment businesses not only protect themselves from costly errors but also build stronger client relationships through reliability and precision.
In short, recruitment payroll software is the backbone of any successful temp agency operation.