Holiday Uplift Payments: An explanation

For those members interested in finding our more about how HUP will be calculated/applied, please see the below except from LTB 048/2019; a letter from Employee Relations to our T&FS National Officer:

In 2016 we introduced an automated system which allows us to accurately determine the level of holiday pay applicable to the first four weeks holiday in the annual leave year. We have further developed our approach to include night pay allowance in 2017 and I can confirm that the approach outlined within this letter will consider all of the allowances we have previously agreed which will continue to be subject to holiday pay calculations.

Our next step is to introduce regularity, we have sought to do this using a straightforward approach where we will consider each element of payment for HUP as separate although we will group within each entity when considering regularity.

The 3 entities we will consider are:

  1. Pay per sale commission, which includes bonus type payments. Where employeeswould ‘miss out’ if they took holiday.
  2. Overtime, we will consider all types of overtime including contractual, COT in Openreach, overtime that forms part of a regular shift rota commitment, overtime generated as part of a formal contractual call out and as per our previous approach formal voluntary call out. Moving forward all other overtime which is classed as voluntary will be considered for the holiday uplift payment. This category also includes additional time for those who are part time, prior to the overtime rate being earned.
  3. Allowances, we do have a list of allowances that have been previously agreed as per my letter of 1st December 2015, these remain extant and will be considered under the regularity clause.

New GRID Sundays within standard hours payment: this is classed as an allowance and is not related to overtime or shift working. This is paid to people who work regular Sundays within their standard hours for which they receive an additional hourly rate. Further to our previous discussions this has been included as part of the HUP payment calculation when it is worked regularly. This must not be confused with any shift framework related payments which are not included.

Allowances not included within this approach.

Fixed allowances: we have a number of these (e.g. London weighting and shift payments) that are currently paid regardless of the level of attendance during the month, remuneration for this type of payment will remain unchanged as they are paid throughout all periods of annual leave rather than just the 20 days under consideration of HUP.

The regularity approach is consistent across each payment entity, should an individual claim for any element within that entity (regardless of the amount) on a month by month basis that claim will be included within the HUP calculation, therefore as long as 1 claim for that payment entity is included within each month of the rolling 3 months all claims will be included within the rolling 3 month calculation. Should an individual have no claim against an entity within a month that entity will not be included within the rolling HUP calculation, to be clear it is that specific entity that would not be included within the payment calculation, not the remaining entities that do conform to the payment calculation period, they would continue to be included.

In terms of our approach:

  1. The application of this approach will apply to EU statutory holiday (4 weeks) only.
  2. The EU statutory holiday will be taken as an individual’s first 4 weeks’ worth of holiday,regardless of carry-over from previous years.
  3. Bank holidays are included in the first 4 weeks’ holiday.
  4. Holiday pay to be calculated in hours, i.e. the first 4 weeks of the annual leave yearwould be 4x contracted weekly hours.
  5. The ‘Holiday uplift payment’ (HUP) will be paid following the annual leave being taken in line with the normal overtime cut off dates that are applied to the monthly payroll process.
  6. The amount paid on a monthly basis will reflect the amount of time taken as leave using the formula identified in the diagram below.
  7. Using a 3 month rolling reference period (month on month) covers the 3 months before the month in which holiday is taken (please see the diagram below). With a claim during each month to that entity to qualify for ‘regular’.
  8. We will pay the HUP a month in arrears (please see the diagram below).
  9. i)  BT payroll will continue to be managed on a monthly basis in line with our existingpayment protocols.