why do employment agencies deduct holiday pay from hourly rate before tax and yet fails to pay it back.?

Answer 1

Under current Employment law Temp. workers are entitled to paid Holidays.

Since Temps work for multiple different Companies, it is unfair for one Company to foot the bill when you decide to take your 2 weeks Summer Holiday.

So the Temp. agencies hold back some of your pay from every company you work for until you decide to go on holiday. That way, all the Companies pay.

To get your Holiday pay, inform the Agency you are going on holiday and they will pay it to you :-)

NB. If you decide to leave the Agency, make sure you take a holiday first :-)