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TSSA Secures Southeastern Holiday Pay Agreement

1 August 2016

Your Union has been in negotiations with Southeastern around the introduction of a Holiday Pay Agreement for many months and has now agreed an arrangement for applying average payments whilst taking annual leave in accordance with recent case law.

 

Holiday Pay Caselaw - The Background

Article 7 of the European Working Time Directive requires that member states of the European Union give workers equivalent to 4 weeks annual leave.

On the 4th November 2014 the Employment Appeal Tribunal (“EAT”) made a ruling in the case on how a week’s pay for those 4 weeks (20 days) of holiday entitlement should be calculated.

It was established that workers or employees who 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) they should receive payment based on the pay that they would receive whilst in work during those 4 weeks leave.

This ruling did not apply to the additional 8 days (including bank holidays) leave entitlement established in UK legislation.

In order to comply with the current EAT’s judgement the Company will introduce Holiday Pay Adjustment (“HPA”) arrangement for the proportion of holiday entitlement that is granted under the Directive.

 

Key points of the Southeastern Holiday Pay Agreement

 · This agreement applies to all Southeastern staff

· A calculation will be used which will work out the average payment taking into account overtime payements etc. that you would have received whilst taking the 20 days European Working Time Directive Leave. This will be calculated over 52 weeks using the difference between basic pay and the qualifying payments received.

· The first payment will be calculated on the entitlement backdated to 1 January 2015 up to 31st December 2015 (Due for payment after September 2016)

· For future years an annual payment based on a calculation of individual entitlement will be made in February the following year (e.g. the payment for 2016 entitlement will be paid in February 2017)

· The interpretation of some of the legislation is still open to challenges; however we have made an agreement that will mean that if there are any future changes in legislation or case law that we can revisit the agreement.

· Leavers will receive a pro-rata payment based on the length of their service and the number of days worked per week. Leavers will need to write to the payroll department to claim their arrears.

It’s important to point out that the amount of the payments that you receive will be proportionate to the amount of overtime, rest day, working, Sundays, Commission etc. that you work. For some there may be no payment due to the fact that your salary encompasses everything that you do, for others the payments may be greater. The Qualifying and non-qualifying payments are set out on lage 2 of the agreement.

Also note that this will only apply to 4 weeks (20 days) annual leave as set out above.

You can download a copy of the full Agreementon for Holiday Pay Adjustment which sets out how your entitlement is calculated and what payments will apply in the calculation   Southeastern Holiday Pay Agreement or via www.bit.ly/SETHolidayPay

 

What’s next?

The TSSA, having already made a significant number of agreements with other Train Operators confirmed acceptance of these arrangements with the company on behalf our members on 21st July 2016.

We are now aware that RMT have just recently followed suit and as a result the back payment may be delayed from the date set out above.

We will keep you advised of any changes.

 

TSSA – winning for our members

We are only able to achieve these improvements by having a strong membership, so please speak to your colleagues about becoming a member of our growing Union.

They can join us by asking a rep for a membership form or join online at www.tssa.org.uk/join

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