HMPPS backdated holiday pay

Following approval by the Treasury HMPPS have developed a payment scheme to backdate holiday pay to comply with recent statutory requirements. Additionally, the employer has developed a holiday pay policy which details the changes in the way holiday pay should be calculated, determined by the most recent case law and which pay elements are eligible.

Holiday pay must reflect “normal remuneration” including voluntary overtime but not exclusively, and where this is worked frequently and regularly to form a pattern. (The element of a pattern is fundamental; those who work ad hoc overtime will not be able to avail themselves of the policy.) This is limited to the statutory 20 days and determined on a case by case basis. The new policy will cover additional leave (pay) for additional hours over the contractual base pay to all affected staff. The maximum payable in law is two years therefore HMPPS has determined that it will pay two years (calculated back to 1 March 2016) worth of arrears up to the implementation date (effective 1 March 2019) without assessing this on a case by case basis but the arears may be paid in staged payments to allow system changes within SSCL. Arrears are pensionable and subject to tax and national insurance.

Following the introduction, future payments will be made on a claim basis each month.

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