Your guide to our updated Audit Criteria

Speakers: Clare Flower, Head of Member Compliance, REC

Clare Flower: As you'll be aware, the working time regulations were amended earlier this year in relation to how holiday pay can be paid. The key changes include the legalisation of rolled up holiday pay for irregular hours workers and part year workers using the 12.07% calculation. We wanted to use this update to provide a reminder about the changes as well as explaining how they've been reflected in the audited criteria. We've also taken the opportunity to lay out a further update we've made to the audited criteria which relates to our member's own internal complaints procedure.

Clare Flower: As REC auditor told us, you'll know that REC checks your contracts as part of the audit process and your contracts with work seekers should clearly lay out the method you use for paying holiday pay. The REC will also provide you with a contract assessment which covers any required amendments to your contracts and holiday pay arrangements. Where the REC notes that your contract states that your workers are irregular hours or part year workers, we will add an advisory note to your contract assessment saying that you must ensure that this reflects the reality of the worker's work pattern. The REC audited process only reviews your contract and not the working pattern of individual workers. And so REC audited cannot confirm that your, your workers are eligible for rolled up holiday pay. While you have adopted the REC model contract 4, terms of engagement with work seekers. Clause seven of the contract covers annual leave. You must ensure that this is amended to reflect on how you are paying holiday pay.

Clare Flower: As well as reflecting holiday pay changes in the audit. We have also strengthened the audit criteria around your own internal complaints procedure to ensure that it is easily accessible for your candidates and clients such as making it available on your website. This well may be, so this may well be something that you do already. As agencies that operate to the highest standards. You'll know that receiving complaints can be a good opportunity for process improvement and your customers will return to you if you give them a good service, including good complaint handling where it's needed. This includes having an easily accessible and visible complaints procedure.

Clare Flower: If you'd like any further help around holiday pay, you can contact the REC legal helpline or a few of the holiday pay FAQs available in the legal guide. You can also contact the compliance team on compliance@rec.uk.com If you have any particular questions around the audit criteria.