Buying annual leave stopped?

[Carefree]

Hello, I wanted to purchase additional annual leave for next year however I was told by another colleague that the managers had mentioned that you could no longer because of some BS sounding reason about it taking you below minimum wage? Sounds like cobblers to me and just managers fidding so people have less time off. Anyone else heard anything?

[Duesouth]

Sounds like nonsense. Speak to your union rep about this, as buying any annual leave will be deducted from your salary.

Its a small amount per week from your pay. The only thing it will effect is there resourcing to cover your shift when your off on annual leave. That's there problem and not yours.

[Wat69]

Any salary sacrifice scheme can not take you below NMW, the POAL scheme stopped last year as the basic hourly rate was so low, now that we have had the paltry pay rise this may have changed things, best to speak to payroll rather than your manager for confirmation

[ted_e_bear]

Any salary sacrifice scheme can not take you below NMW, the POAL scheme stopped last year as the basic hourly rate was so low, now that we have had the paltry pay rise this may have changed things, best to speak to payroll rather than your manager for confirmation

The highest amount you'd pay for POAL is if you're under 5 years service (which obv applies to everyone on the new contract) the cost is 3% of your wage to give 6 weeks leave so prior to the latest rise it would have taken you under nmw and probably will again next April when the nmw is increased.

You can have 5 weeks leave instead of the standard 4.5 though and the deduction is 1% so that should be ok.

For info according to the people app if you want to purchase extra leave the window to do so opens January until the last working day Feb and your manager has to sort it for you.

[rogersh]

Awaiting an update on this LTB

EDIT
"We are in discussions with Royal Mail to still allow access to additional annual leave, even when an individual does not qualify for salary sacrifice. Where individuals are above the minimum wage figure, they would be eligible for salary sacrifice for the purchase of annual leave."


"Whilst negotiations are continuing it is advised that for the purposes of selecting leave for next year, individuals should follow the same allocation as last year, including any purchased leave."


FULL TEXT

No. 232/25 24th October 2025

Dear Colleagues, Salary Sacrifice -

Salary Sacrifice – POAL


The recent increase in the national minimum wage has resulted in a number of companies having to review the purchase of annual leave and that of which is taken out through My Bundle.

The reason for this is employers are under a legal requirement to ensure that an individual’s pay does not fall below the minimum wage after the deductions for salary sacrifice have been made. This is why Royal Mail took the decision in April to step in and pay for the purchase of annual leave and for My Bundle items ahead of any pay rise, to potentially avoid being in breach of the minimum wage legislation.

This is a particular problem where individuals purchase annual leave and have several My Bundle purchases at the same time.

We are in discussions with Royal Mail to still allow access to additional annual leave, even when an individual does not qualify for salary sacrifice. Where individuals are above the minimum wage figure, they would be eligible for salary sacrifice for the purchase of annual leave.

Whilst negotiations are continuing it is advised that for the purposes of selecting leave for next year, individuals should follow the same allocation as last year, including any purchased leave.

In terms of any items purchased via My Bundle and paid via a salary sacrifice, Royal Mail are carrying out a review of the benefits, the result of which will be announced in due course.

A further update on this issue will be provided in due course.

Any enquiries in relation to the content of this LTB should be addressed to the DGS(P) Department.

Yours sincerely,

Martin Walsh

Deputy General Secretary (Postal)

LTB 232/25 – Salary Sacrifice -POAL

[Runnerdan]

I currently have this, and we have just picked our annual leave for next year, when it came back I noticed I’d only been given the basic amount. I went and asked the person that sorts the leave and she basically said as it stands it’s not going ahead anymore but not 100% sure. But as usual no one can give a definite answer or even tell us what was happening in the first place!

[Sllohcin1983]

Obviously the simple solution to this is for the company to give us a significant pay rise….

[qwerty2]

Hello, I wanted to purchase additional annual leave for next year however I was told by another colleague that the managers had mentioned that you could no longer because of some BS sounding reason about it taking you below minimum wage? Sounds like cobblers to me and just managers fidding so people have less time off. Anyone else heard anything?

Heard last week it’s been stopped for everyone

[thefox]

Silly move that's only gonna increase sickness.

[Pidleypoo]

The union need to be coming out and saying something concrete about this.

Is it a possibility that we lose it because that’s a disaster if we do.

Not sure if it’s in all contracts either.

Not in anyway good enough from the union or particularly Royal Mail, do they actually want people to do this job or not ?

[Clappedoutpostie]

If it’s stopped then surely they would have to write to individuals effected.

[norris9]

Hello, I wanted to purchase additional annual leave for next year however I was told by another colleague that the managers had mentioned that you could no longer because of some BS sounding reason about it taking you below minimum wage? Sounds like cobblers to me and just managers fidding so people have less time off. Anyone else heard anything?

Heard last week it’s been stopped for everyone

Heard from who.

-The payment was stopped many months ago and everyone got their POAL for free as Royal Mail didn't really have any other option.

-Everyone who booked POAL for the current year could still take that booked time off.

-The CWU has put out a letter saying anyone who booked POAL for the current year can book it for next year. In the meantime they are resolving how to go forward with POAL. My assumption is anyone who would go below minimum wage from booking that extra time off won't be allowed to book it.

[rogersh]

If it’s stopped then surely they would have to write to individuals effected.

Correct, The letter we received stated;

When will my salary sacrifice be reinstated;
"We will write to you again before your salary sacrifice is reinstated, which is likely to be shortly after the pay talks have completed."

Obviously taking longer than expected & I have posted the CWU statement on this.