Need to know
For #TeamEEAST Last updated: 18 May 2024 at 13:36
Since the implementation of the corrective holiday pay arrangements announced in March and paid to EEAST staff from September, Ambulance Trust employers have been working closely with joint Trade Unions through the National Ambulance Strategic Partnership Forum (NASPF) to agree on a practical and fair arrangement to ensure overtime and additional basic pay are included in the payments for holiday pay for the year started 1 April 2021 and beyond.
Changes to the national NHS payroll system (ESR) are not expected to be complete or implemented until at the earliest October 2022. An interim agreement has therefore been reached which will ensure that payments are received without undue delay while these national changes and Trust specific implementation actions are carried out.
A payment under this interim agreement is planned in the new year to account for overtime and additional hours paid to staff from 1 April to a month in arrears. Working arrangements are being developed to ensure ongoing interim payments can be made later in 2022.
The detail of this agreement can be downloaded at the bottom of this article. The key features are summarised below:
Overtime and Additional Basic Pay Agreement key points:
The Interim agreement covers from 1 April 2021 to until 6 months after the technical ESR solution on Average Pay has been developed which will apply consistently across the NHS.
Payments will arise for overtime or additional hours paid on substantive assignments.
Only substantive, fixed term, full and part-time employees under section 3 of Agenda for Change are covered by this agreement. Consistent with the NHS Staff Council agreement, bank assignments and hours worked on bank are not included.
No regularity eligibility restriction is applied to individuals to demonstrate that overtime/ additional hours is regular for them.
A payment of 13% of the value paid of overtime/ additional hours will be made.
Payments in relation to Additional hours will be pensionable pay in line with the additional hours payments themselves.
Other regular payments
In addition to the national agreement, which relates to overtime and additional basic pay only, English Ambulance Trusts have reviewed other payments currently being made to staff.
As part of the interim pay arrangements until ESR is updated each individual Trust has considered whether there are other payments which are both regular enough, and which appear by their nature to be likely to be considered part of pay relevant to the calculation and payment of holiday pay as set out in Agenda for Change.
Within EEAST we have determined that the following payments will also be included in holiday pay calculations moving forward from 1 April 2021:
Frequently Asked Questions in the Ambulance Sector
Why is this being done now? The national ESR solution is identified as being many months off, and it is collectively recognised that an interim agreement is the practical way to ensure timely payments can be made. Agreement between Trade Unions and Ambulance Trusts has been reached to ensure the approach is fair and practical.
Why has a 13% multiplier been chosen? Until ESR is developed to enable holiday pay to be paid on an averaging approach a practicable solution which results in similar overall pay in the form of a multiplier allows for a timely payment approach. Trade Unions have agreed 13% based on average leave entitlements across the sector.
Why is this lower than the 16% in the corrective agreement payment? The 16% multiplier reflected a combination of the period of time over which overtime was not included, the number of eligible staff and the overall national estimated costs of those payments. The corrective agreement payment was also subject to individual assessment of eligibility on regularity.
Are my pension deductions affected? Overtime is not pensionable and so the payment in connection with overtime is not pensionable. Additional basic pay is pensionable and therefore payments made in relation to additional basic pay will be pensionable. This may mean an increased level of pay assessed for pension deductions and the calculation of pension deduction category.
What happens if I take my overtime as TOIL? If you choose to take your overtime as TOIL then this overtime will not be taken into account in the calculations for a payment under the agreement. This is as Time off in lieu (TOIL) is taken instead of a payment for overtime.
I am a bank worker or have a bank assignment contract? The agreement only applies to substantive staff employed on Agenda for Change who receive overtime payments or additional basic pay.
Published 15th December 2021
