Temp agencies are likely to be able to continue to provide ‘rolled-up’ holiday pay following Europe’s top legal expert’s backing of the system.

Agencies outside Scotland have the option of paying temps holiday pay on top of their wages. This means that they don’t have to pay temps while they are on holiday.

The European Court of Justice’s (ECJ) advocate-general, Christine Stix-Hackl, backed the practice, provided agencies clearly show how much of a temp’s wage is holiday pay.

Stix-Hackl gave her opinion to provide guidance to a court case, and it is expected that the ECJ will agree with her thinking.

Kevin Barrow, lawyer at legal firm Tarlo Lyons, said Hackl also ruled that agencies must ensure temps take their minimum holiday entitlements on health and safety grounds.

The Working Time Directive stipulates that all workers must take a minimum of four weeks paid leave every year.

“The advice from the advocate-general allows for current practice to continue,” said Tom Hadley, director of external relations at the Recruitment and Employment Confederation.

“Rolled up holiday pay ensures that temporary workers, who may be working for several agencies on short assignments, get the holiday pay they are entitled to.

“This allows for temps to save up for their holidays in the same way that full-time workers do.”

Stix-Hackl gave her opinion on the ECJ case Marshalls Clay Products v Caulfield, which is due to conclude in six months’ time.

Rolled-up holiday pay is illegal in Scotland following a 2003 ruling in the Scottish Court of Sessions.