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LOROL: Holiday Pay Premium (HPP) Agreement

2 August 2016

TSSA along with the other trade unions have concluded negotiations with LOROL regarding the introduction of a holiday pay scheme. These talks have come about as a result of recent case law based on the interpretation of the Working Time (Amendment) Regulations 2007.

Therefore, where workers or employees carry out duties that receive payment linked to their “normal remuneration” (i.e. overtime) or are “intrinsically linked” to performing their role (i.e. Commission) then in order to encourage them to take their statutory annual leave under the European Working time Directive (4 weeks or 20 days) they should receive payment based on the pay that they would receive whilst in work during those 4 weeks (or 20 days) leave.

A full copy of the Holiday Pay Premium (HPP) proposals can be found here:   LOROL Holiday Pay Premium (HPP) Proposal

 

Summary of the agreement

TSSA along with the other trade unions have concluded negotiations with LOROL around the introduction of a holiday pay scheme. This is as a result of recent case law based on the interpretation of the Working Time (Amendment) Regulations 2007.

Where workers or employees carry out duties that receive payment linked to their “normal remuneration” (i.e. overtime) or are “intrinsically linked” to performing their role (i.e. Commission) then in order to encourage them to take their statutory annual leave under the European Working time Directive (4 weeks or 20 days) they should receive payment based on the pay that they would receive whilst in work during those 4 weeks (or 20 days) leave.

There continues to be legal challenges surrounding the application and calculation of Holiday Pay. This proposal will be jointly reviewed by the employer and trades unions as required to consider any changes in the prevailing UK law.

  • Payment of Holiday Pay Premium (HPP) is to be effective from 1 April 2015. It should be noted that a number of system changes will be required and therefore implementation may be delayed. However, a back payment to this date would be made to reflect this when implemented.
     
  • Employees currently eligible to receive Annual Leave Premium (ALP) will not be affected by this proposal and will not receive HPP. Existing ALP arrangements will remain in place and further discussions will take place with the recognised Trade Unions for grades in receipt of ALP.
  • HPP to be paid annually as a lump sum in the final pay period of the tax year based on certain qualifying variable elements of pay earned during the same tax year.

It’s important to point out that the amount of the payments that you receive will be proportionate to the variable elements of your pay (such as overtime, rest days or Sundays worked). Some LOROL employees may not receive HPP due to the fact that your salary encompasses everything that you do and you do not receive any additional or variable payments. HPP will be paid only for the first 20 days of your annual leave entitlement.

Annual Leave Premium

This arrangement will apply to employees of LOROL (including West Anglia) covered by existing collective bargaining agreements with the exception of those already eligible for ALP. Current arrangements for ALP will continue for those grades currently eligible for ALP.

Where we are now

LOROL made it clear that this was a final offer, and having canvassed your TSSA representatives it was felt that it was best to agree to this proposal and get it into payment rather than delay any further and so I have written to the company to agree to the proposals.

Next steps

If you have any questions about Holiday Pay Premium (HPP) or Annual Leave Premium (ALP) please contact Mel Taylor, TSSA Organiser at: taylorm@tssa.org.uk.

If you have received this information via post and would prefer to receive emails, or you have other changes to make to your details like home address or job title, then please update them online at http://www.tssa.org.uk/mytssa

We achieve improvements such as HPP by having a strong trade union membership, so encourage your colleagues to join TSSA.

To join TSSA contact a local TSSA rep, or Mel Taylor, TSSA Organiser at: taylorm@tssa.org.uk. You can also join online at: www.tssa.org.uk/join

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