No. 05/2016 16 May2016

TO ALL BT BRANCHES WITH MANPOWER MEMBERS

Dear Colleague

Manpower - Holiday Pay Arrangements – Holiday Uplift Payments

Branches will be aware that the CWU recently reached an agreement with BT on the issue of Holiday Pay which was reported in Letter to Branches 207/2016 dated 05 April 2016.

This is as a result of recent judgements in a number of separate cases brought before either the European Court of Justice (ECJ) or the Employment Appeal Tribunal (EAT), which published conclusions establishing the position that Holiday Pay should include certain payments outside basic pay which reflect normal remuneration for an individual when taking annual leave.

These certain payments include the following:

  • Commission
  • Allowances

Manpower have now advised the CWU that it is their intention to mirror the approach of the BT Holiday Pay arrangements and ensure full compliance to the regulations. As such, the same principles will be applied as per the BT Agreement as follows:

  • The application of this approach will apply to EU Statutory Holiday (four weeks only).
  • The EU Statutory Holiday will be taken as an individual's first four weeks' worth of holiday beginning on 01 April, regardless of carry-over from previous years.
  • Bank Holidays are included in the first four weeks holiday (20 days)
  • Holiday Pay to be calculated in hours, i.e. the first four weeks of the annual leave year would be 4x times contracted weekly hours.
  • The Holiday Uplift payment (HUP) will be paid following the annual leave being taken in line with the normal overtime cut-off dates that apply to the weekly payroll process.
  • The amount paid on a monthly basis will reflect the amount of time taken as leave using the formula identified in the diagram below.
  • Using a 3 month rolling reference period (month on month) covers the 3 months before the month in which holiday is taken (please see diagram below).
  • Manpower will pay the HUP a month in arrears (please see diagram below).

Manpower have advised the CWU that BT are in the process of providing them with the data on the two sets of terms and conditions, i.e. NewGrid and WF2020 contracts, and that they are at the moment still working through a number of issues on how these terms will be applied, depending on whether Manpower employees are on an equal treatment contract (NewGrid, Equal Treatment) or PBA contract.

Please find attached a copy of the comms that Manpower has issued.

Any queries should be addressed to Sally Bridge, Assistant Secretary, at

Yours sincerely,

Sally Bridge

Assistant Secretary

Attachment: