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Big Changes to Holiday Pay for Bands 5-8

27 November 2017

Following an Employment Tribunal Judgement in July 2017, all UK employers will need to pay holiday pay in full for the statutory minimum 20 days under the European Working Time Directive.

This includes Network Rail (although they have lagged behind most other railway employers in addressing the situation).

What this basically means is that your overtime earnings (and certain other elements) are included in the calculation of how much holiday pay you should receive.

More holiday pay

Currently NR pay only 40% of the gap between "total" earnings and “normal” earnings in your holiday pay. Or a 12-13% premium on top of your “normal” earnings. This is what is known as Annual Leave Allowance (ALA) or Annual Leave Premium (ALP).

We now have to negotiate a deal to replace ALA/ALP with a form of holiday pay calculation that meets the new legal requirements.

TSSA believes that this will result in a clear financial benefit to NR staff.

We kicked off this process last week with a joint meeting of the National Operations Council (NOC) and National Maintenance Council (NMC). Working groups involving your Reps from both Councils have been established to look into the detail of what current arrangements are in place, what should be included in the new calculation, and the simplest way of delivering a solution.

We have not agreed any changes to your holiday pay arrangements yet as we need to be absolutely clear that no-one will lose out and that the new system is fit for purpose. Any changes will be fully negotiated via the two National Councils and TSSA will give you a vote as to whether to accept any proposals.

As you can imagine, there are a lot of complex situations out there which will require some serious working through. Please get in touch with your Reps to ensure your situation is properly understood. We will also be holding a number of workplace meetings to give you the opportunity to feed into the process. Contact TSSA Organiser, Luke Chester, to arrange a meeting in your workplace:


More good news is that by finally addressing the holiday pay issue, NR have identified underpayments owed to staff under the current ALA/ALP scheme.

In Operations, over 700 staff have been underpaid! In Maintenance, approx. 1400 have been underpaid! TSSA believes that this is, in part, due to the disastrous reorganisation of HR services which took people out of local offices where they understood the working practices and pay systems at work.

NR have offered to pay up to 2 years back pay for these underpayments (the longest period of time that can be claimed at ET). We believe they should pay in full for any underpayments going back further than this. Further discussion is scheduled for the NOC and NMC meetings next month.

It just goes to show how important it is to be a TSSA member and work in an industry where Unions can fight your corner.

Please let your non-Union colleagues know what is happening and ask them to join TSSA today if they want a say a work. Freeloading off the back of your membership only undermines our negotiating position and results in a worse deal for everyone.

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