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Holiday pay enforcement: what BIOR said, and what happens next

A past BIOR campaign, kept as a record of what was put to government.
Holiday pay enforcement: what BIOR said, and what happens next

The government's consultation on how the Fair Work Agency will enforce statutory holiday pay from 2027, including a six-year claim period and civil penalties, closed at 11:59pm on 22 September 2026. BIOR submitted its response on 3 September. We backed Fair Work Agency enforcement, asked for the duty to fall on the business that actually pays the worker, for honest error to be treated differently from deliberate underpayment, and for worked examples for agency workers before enforcement starts. The government's response is awaited. When it is published, the outcome and what it means for an agency's payroll will be on the Employment Rights Hub. Campaign closed 22 September 2026; your MP can still put the three points to the Minister before enforcement begins.

The letter to your MP

Dear [MP name],

I run a recruitment business in your constituency. The government consulted over the summer on how the Fair Work Agency will enforce statutory holiday pay from 2027. The consultation closed on 22 September 2026 and the rules are now being settled.

I support enforcement. Agencies that pay holiday pay properly are undercut by those that do not. I am asking you to put three points to the Minister before enforcement begins.

First, enforcement should fall on the business that actually pays the worker. Where an umbrella company or another business runs the payroll, that business should carry the liability, not the agency that introduced the worker.

Second, honest error should be treated differently from deliberate underpayment. Holiday pay for irregular hours is calculated under rules that changed as recently as 2024. A business that corrects an honest mistake promptly should face repayment, not a penalty designed for deliberate offenders.

Third, before enforcement begins, the Fair Work Agency should publish worked examples for agency workers and a calculator, so that small businesses can check their own payroll against the standard they will be held to.

The British Institute of Recruiters, my professional body, has submitted a full response on these lines. I would be grateful if you would raise them with the Minister.

Yours sincerely,
[Your name]
[Business name and address]