More and more employers are recognising the value of temps, so there is often high demand. Temps may be paid more than an equivalent permanent employee and because temporary pay is based on an hourly rate, the more hours you work, the more you get paid.
Under the Working Time Regulations, temporary workers are entitled to a minimum of 5.6 weeks paid annual leave. There are also conditional entitlements to sick pay when you're a temp. Make sure you ask your temp agency or employer about holiday, sick pay and maternity pay entitlements before you start work.
Tax and National Insurance
As a temp, you're taxable under the Pay As You Earn (PAYE) scheme. However, some contractors, particularly in IT, choose to work through a limited company or an umbrella company. IR 35 legislation affects many contractors, therefore, we would recommend you seek professional advice.
The Agency Workers Regulations
The impending Agency Workers Regulations will come into force in October 2011 and will ensure that temps employed for more than 12 weeks will receive the same basic pay and employment conditions as permanent staff. It will entitle temps to the same rate of hourly pay as permanent employees and this will include overtime, shift allowances, unsocial hours premiums, dangerous duty bonuses and commission payments. It will, however, exclude sick pay, pensions and bonus payments based on organisational performance.
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