Telefonica Holiday Pay
11 January 2018
Issue No. 001/2018
TO ALL BRANCHES WITH TELEFONICA MEMBERS
Dear Colleague
Telefonica Holiday Pay
The CWU has been in discussion with Telefonica for considerable time over the issue of Holiday Pay since the European Court of Justice and the Employment Appeal Tribunal concluded that holiday pay should include certain payments outside basic pay which reflect normal remuneration for an employee when taking annual leave.
Telefonica has now written to the CWU confirming the process that will take place in Telefonica UK to ensure that no employees are disadvantaged when they take annual leave
As of 1st January 2018, Telefonica UK will process an additional payment known as Holiday Pay Adjustment (HPA) to all eligible employees who take annual leave if they normally earn certain allowances, commission and overtime.
The key principles that will be followed are:-
• HPA will be paid monthly to all eligible employees.
• HPA will be paid in the pay run following annual leave as long as the annual leave is taken before the normal payroll cut off dates. If annual leave is taken after payroll cut off, the HPA will be payable for that annual leave in the following month’s salary.
• HPA will be paid to all Telefonica UK permanent employees.
• HPA will be based on the first 20 days annual leave taken only and it does not include bank holidays.
• The HPA reference period (to identify overtime, allowances and commission that are payable for the period of annual leave) will be based on the previous 3 months pay slips.
• HPA will be paid on annual leave (the 1st 20 days per annum) from 1st January 2018. The first payments will be made in February 2018 pay slips.
HPA will be calculated as follows:-
• At the start of each month, the number of hours and days annual leave taken in the previous calendar month will be extracted from Chorus.
• The relevant payments (overtime, agreed allowances (see table) and/or commission) received by an employee in the previous 3 months will be checked.
• The total payments are then:
o Multiplied by 4 to obtain a projected annual figure.
o Divided by 52.18 to obtain a weekly figure.