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LTB 106/17 - Holiday Pay for Part-Timers

23 Feb 2017, 18:00

LTB 106/17 - Holiday Pay for Part-Timers
Holiday Pay for Part-Timers

Following the carriage of Recommendation 53 at the Policy Forum in March 2016, I am writing to update Branches on discussions with the business around the long-standing issue of holiday pay for part-timers. Recommendation 53 called for the issue “to be addressed as soon as practically possible” and, as a result, the CWU has been in talks with Royal Mail to seek a collective agreement and a resolution to the issue.

While there are clear cost implications for the business and continued uncertainty over the developing legal position (with a number of legal cases still outstanding), the general principle emerging is that any elements of pay which an employee regularly receives, not just overtime, should be paid on Annual Leave.

The issue also arose out of complaints from part-time members that the business was not adhering to the Agenda for Growth Agreement (in upgrading their contract where they regularly work beyond their contractual hours) and that the extra overtime hours they worked were not being factored into the holiday pay they receive on Annual Leave. As a result, we set up a Holiday Pay Working Group in March last year to re-open talks with the business. These have been attended by Bobby Weatherall on behalf of the DGS(P) Department and Jeremy Baugh, Senior Policy Officer.

Since March 2016 we have held a series of meetings with the employer to discuss the issue of holiday pay with the talks focused on a number of key questions including:

• How we define what constitutes regular overtime?
• What thresholds should be adopted?
• What are the administrative and payroll requirements?
• How we deal with seasonal variations? and
• What reference period should be used to calculate paid holiday for part-timers?

To better understand the scale and range of overtime worked by part-timers, the Working Group has analysed actual overtime data from a selection of sample offices although this only confirmed the wide variations in the amount and range of overtime worked across different parts of the business. In implementing any new system, Royal Mail have also said they will need a minimum ‘lead-in’ time of six months to ensure the necessary preparatory work is undertaken on their PSP system.

Branches should also note that while the business say they are willing to address the issue of holiday pay for part-timers, they have also made clear they will not debate the wider question of what overtime payments may or may not be included in the calculation of holiday pay while the law in this area remains unclear.

Given the range and extent of overtime hours worked in RMG, it has proved very difficult to date defining the concept of ‘regular’ overtime. To avoid further debate on this issue the CWU set out some initial proposals relating to holiday pay for part-timers late last year, based on the use of a six month reference period and a simple average of additional overtime hours worked above conditioned part-time hours.

Following a meeting with the business in December 2016, Royal Mail wrote to the CWU in January 2017 setting out their counter proposal which would involve an additional “paid holiday credit” paid the following week to prevent ‘flat’ earnings when part-time OPGs take contractual annual holiday. In contrast to the CWU’s proposals, Royal Mail’s less generous scheme would mean those receiving paid holiday credit would only cover employees whose combined and contractual part-time overtime hours (over the previous 52 weeks) exceeds 35 hours per week (i.e. 90% of full-time hours) and part-time overtime averages over 12 hours per week. While the talks to date have focused on OPGs, the business has said they would expect to operate the same or equivalent thresholds for other CWU represented grades.

Clearly this counter proposal is totally unacceptable and demonstrates that whilst the business continues to use part-time contracts as a regular flexible resource, out with the spirit and intent of our agreements, they are not prepared to do the honorable and decent thing and reflect their average pay when on annual leave. On one hand they accept the principle but on the other they propose a criterion which clearly seeks to minimise any deserved payment.

We have arranged a further meeting with the business on Friday 3rd March to continue negotiations on the principle and details of any holiday pay arrangements with a view to securing a just and mutually acceptable solution.

Further updates will be provided to Branches in due course.

Any enquiries in relation to this LTB should be addressed to the DGS(P) Department quoting reference 60000.

Yours sincerely


Terry Pullinger
Deputy General Secretary (Postal)

LTB 106/17 - Holiday Pay for Part-Timers

23 Feb 2017, 20:47

the general principle emerging is that any elements of pay which an employee regularly receives, not just overtime, should be paid on Annual Leave.


How many years did we go without D2D payment during annual leave?

LTB 106/17 - Holiday Pay for Part-Timers

21 Mar 2017, 22:56

I started on a 25 hour, 5 days per week contract 6 months ago. I've accrued 7.5 days of which I'll have used 3 by April. I asked my manager about carrying over days or taking them off. He said carrying over was fine. A few days ago I was given my leave sheet for this year & there was no record of the days carried over. He said that they would be added at the end of the next tax year. I've never heard of this & I can't see it in the policy document. Surely in you have entitlement left it would be added with this years entitlement?? Thank you...

LTB 106/17 - Holiday Pay for Part-Timers

27 Mar 2017, 21:19

so are they gunna backdate or not

LTB 106/17 - Holiday Pay for Part-Timers

06 Sep 2017, 20:22

Any more news on Holiday Pay for Part timers?

LTB 106/17 - Holiday Pay for Part-Timers

31 Jul 2018, 08:22

any more info , what about if someone on part time hours is working full time duty and extra ot every week , but still gets part time pay when on leave

LTB 106/17 - Holiday Pay for Part-Timers

31 Jul 2018, 11:25

Us part timers are all forgotten about again. I can only see us having to work more hours with the SWW coming soon but still not getting any extra hours or average hours while on leave or sick.

LTB 106/17 - Holiday Pay for Part-Timers

31 Jul 2018, 14:40

What you need to do is flood the Unions facebook site, and perhaps a live stream when they have one.

Put some pressure on them, don't just sit back and ask what the CWU are doing about it. Make them do something.

LTB 106/17 - Holiday Pay for Part-Timers

05 Aug 2019, 13:36

Any update for us part timers, working full time hours ( apart from holidays ).

LTB 106/17 - Holiday Pay for Part-Timers

05 Sep 2019, 21:43

SDee wrote:Any update for us part timers, working full time hours ( apart from holidays ).


I went through ACAS and got offered a substantial sum from Royal Mail for Average holiday pay. Its the way to go until its sorted.

LTB 106/17 - Holiday Pay for Part-Timers

Yesterday, 20:29

Did the definition of 'regular overtime' get finalised? I get 12 hours scheduled attendance a week, but often can do upto 30 hours in total. I get the scheduled hours when im on annual leave, but not any of the normal overtime hours from picking up uncovered duties.

LTB 106/17 - Holiday Pay for Part-Timers

Yesterday, 21:11

There is a whole forum section about this subject, you can find more details here: https://www.royalmailchat.co.uk/communi ... m.php?f=67

LTB 106/17 - Holiday Pay for Part-Timers

Today, 01:42

I went through ACAS and got offered a substantial sum from Royal Mail for Average holiday pay. Its the way to go until its sorted. hello how do they work out the figure they offer you, is it a average for the full two years or a average for the 12 or so weeks you are on annual leave thanks in advance .

LTB 106/17 - Holiday Pay for Part-Timers

Today, 07:59

Janet Brum wrote:There is a whole forum section about this subject, you can find more details here: https://www.royalmailchat.co.uk/communi ... m.php?f=67

Thanks Janet, I did go through the posts but couldn’t seem to find a definitive answer.

LTB 106/17 - Holiday Pay for Part-Timers

Today, 14:28

steve_elstree wrote:Did the definition of 'regular overtime' get finalised? I get 12 hours scheduled attendance a week, but often can do upto 30 hours in total. I get the scheduled hours when im on annual leave, but not any of the normal overtime hours from picking up uncovered duties.

From what I am aware, all normal OT done over contracted hrs count.

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