CALCULATION OF HOLIDAY PAY – COLAS RAIL

Our Ref: BR4/9/8

29 November 2019


Dear colleague

CALCULATION OF HOLIDAY PAY – COLAS RAIL

The current way in which Average Holiday Pay (AHP) is calculated is made by averaging all additional earnings earned by the employee in the 12 weeks prior to the time the holiday is taken.

As from 6th April 2020 changes to the law come into force which increases the reference period used for determining a week’s pay when calculating holiday pay from 12 weeks to 52 weeks.

With this in mind and citing the admin-intensive requirements of the current system, Colas Rail has proposed to introduce two separate calculations depending on whether an employee is Monthly or Lunar paid.

Monthly
Total additional earnings during the 12 pay periods from January 2019 to December 2019 divided by 52 to achieve a weekly average and multiplied by 4 to achieve an average for 20 days (or 4 weeks leave). This figure will then be divided by 12 and paid as an allowance from Feb-Jan the following year. This calculation will then be re-run the following January.

Lunar
Total additional earnings during the 13 pay periods from January 2019 to December 2019 divided by 52 to achieve a weekly average and multiplied by 4 to achieve an average for 20 days (or 4 weeks leave). This figure will then be divided by 13 and paid as an allowance from Feb-Jan the following year. This calculation will then be re-run the following January.

It was the view of your negotiating team that these proposals were acceptable and thus recommended for acceptance to the National Executive Committee, which endorsed this position.

I have therefore advised the company of this acceptance and you will now see this calculation reflected in your pay.


Yours sincerely

Mick Cash
General Secretary