The Freelancer & Contractor Services Association (FCSA) has recently updated its Codes of Compliance to ensure all members process holiday pay correctly and in the best interests of temporary workers. However, some stakeholders have responded negatively to the changes, suggesting the wording is a watered-down version of what should be published. In response, the FCSA has released a statement. Keep reading for more information.
An FCSA accredited member, Advance, made the FCSA aware of potentially “unlawful” wording in the FCSA’s Codes of Compliance. In a statement released on Monday 11th of July (the second official response to the changes to the Codes of Compliance), the FCSA said the following:
“Following the various news items and social media posts about recent updates to the FCSA Codes, many of which mischaracterise events or draw incorrect conclusions, FCSA wish to set the record straight.
Following standard practices, FCSA issued draft Codes for review by members. Many members commented on the proposed changes, amongst which was a strengthened paragraph on holiday pay (A10 of the Umbrella Code).
We received an observation from one of our members, Advance, that the wording as it stood would require FCSA members to act unlawfully since it could discourage employees from taking holidays in the holiday year (as required by the Working Time Regulations “WTR”) and simply take holiday pay instead. Following consultation with our lawyers, Advance’s comments were taken on-board and the Code was updated. Like any organisation, FCSA does not want to put any of its members in a position where they may be forced to act in breach of WTR or any other regulations.
For the avoidance of doubt. FCSA’s Code stipulates that members should remind workers to make full use of their holidays within the holiday year and to pay out all holiday pay that is due.
We’d like to take this opportunity to thank all its members, including Advance, for contributing to the Codes with regards to best practice and corporate governance. Advance have been an FCSA member for some time and earlier this year were successfully reassessed for compliance with the FCSA Codes.
Many of the issues we encounter result from legislation that is not designed for modern ways of working and the growing contingent workforce. Collectively, we will continue to lobby government to recognise these complexities, and, in the meantime, we will also continue to drive compliance standards within this industry.
We hope this provides clarity and continue to give you an idea of what the FCSA is looking to achieve – together with the rest of the industry.”
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