Annual Leave Policy MECCG Policy Reference: MECCG082
Brief Description (max 50 It is the policy of the organisation to encourage all staff to take words) their periods of annual leave in blocks throughout the year to ensure the welfare of its employees and that individuals’ receive the full benefit of a rest and break away from work.
Target Audience All CCG employees
Action Required To be approved by the CCG Board then disseminated to all staff
Document Information
Version Number 1.1
Accountable Director Director of Corporate Services
Responsible Officer/ Head of Human Resources Policy Owner Date Approved by 26 September 2018 Quality, Finance & Governance Committee Approved By Board 27 September 2018 (extended by 12 months at Board 26 March 2020)
Review Date September 2021
Stakeholders engaged Finance Quality & Governance Committee in development or Joint Staff Forum review Equality Impact EQUALITY IMPACT ASSESSMENT Assessment This document has been assessed for equality impact on the protected groups, as set out in the Equality Act 2010. This Policy is applicable to the Board, every member of staff within the CCG irrespective of their age, disability, sex, gender reassignment, pregnancy, maternity, race (which includes colour, nationality and ethnic or national origins), sexual orientation, religion or belief, marriage or civil partnership, and those who work on behalf of the CCG
Amendment History
Version Date Reviewer Name(s) Comments 1.1 July 18 Counter Fraud – Charlie Updates in relation to Counter Roberts in conjunction Fraud. with HR
Policy Ref: MECCG082 Version: 1.1 Approved: 27 September 2018 Review date: September 2021 1
Associated Policy Documents
Reference Title MECCG085 Disciplinary Policy & Procedure MECCG008 Anti-Fraud and Corruption Policy MECCG105 Absence Management Policy MECCG088 Grievance Policy
CONTENTS PAGE NO
1 INTRODUCTION...... 3 2 SCOPE ...... 3 3 Equality Impact Assessment (EIA) ...... 3 4 POLICY STATEMENT ...... 3 5 Entitlements and Application ...... 3 THE ANNUAL LEAVE YEAR ...... 4 ENTITLEMENTS ...... 4 Length of Service ...... 4 Holidays (days) ...... 4 Holidays (hours) ...... 4 SICKNESS AND ANNUAL LEAVE ...... 5 PROCEDURE FOR BOOKING ANNUAL LEAVE ...... 5 BANK HOLIDAYS ...... 6 Calculating annual leave and bank holiday entitlements ...... 6 6. WORKING eXAMPLES ...... 7 Annualised Hours ...... 7 non standard Hours...... 7 Term Time Hours ...... 8 7. nEW jOINERS, lEAVERS AND cHANGES TO HOURS ...... 9 Calculation of annual leave entitlement for NEW JOINERS ...... 9 Calculation of Bank Holiday entitlement for NEW JOINERS ...... 9 leaving Employment ...... 9 changes in contracted hours ...... 10 8. Long service ...... 10
Policy Ref: MECCG082 Version: 1.1 Approved: 27 September 2018 Review date: September 2021 2
1 INTRODUCTION
1.1 All employees’ of Mid Essex CCG (hereafter referred to as the organisation) have a contractual entitlement to paid Annual Leave and Bank holidays. The statutory minimum holiday entitlement under the Working Time Regulations 1998 is currently 5.6 weeks (pro- rata for part time staff).
As an NHS employer the organisation offers contractual Annual Leave in line with Agenda for Change, therefore an individual’s entitlement is dependent upon the employees’ length of service and working hours.
2 SCOPE
2.1 This policy will apply to all staff directly employed by the organisation, irrespective of hours worked, length of service, or whether employed permanently.
3 EQUALITY IMPACT ASSESSMENT (EIA)
3.1 This policy is applicable to every member of staff within the organisation and in applying this policy, the organisation will have due regard for the need to eliminate unlawful discrimination, promote equality of opportunity, and provide for good relations between people of diverse groups, in particular on the grounds of the following characteristics protected by the Equality Act (2010); age, disability, gender, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, and sexual orientation, in addition to offending background, trade union membership, or any other personal characteristic.
4 POLICY STATEMENT
4.1 It is the policy of the organisation to encourage all staff to take their periods of annual leave in blocks throughout the year to ensure the welfare of its employees and that individuals’ receive the full benefit of a rest and break away from work. Employees must ensure they manage their annual leave effectively and should aim to take their full entitlement each year. Managers should endeavour to ensure that the workloads of employees do not prevent any employee from taking their entitlement of annual leave.
4.2 The organisation is committed to promoting health and wellbeing in the workplace and as such does not expect any staff to fulfil working commitments during periods of annual leave. Annual leave should enable a member of staff to take time away from work to relax and enjoy a break.
5 ENTITLEMENTS AND APPLICATION
Policy Ref: MECCG082 Version: 1.1 Approved: 27 September 2018 Review date: September 2021 3
THE ANNUAL LEAVE YEAR
5.1 The annual leave year runs from 1st April to 31st March each year. Employees should ensure that they take their full entitlement to annual leave each year in consultation and agreement with their line manager.
5.2 In exceptional circumstances, with prior agreement by line managers, annual leave may be carried over into the following leave year, subject to a maximum of an employee’s normal working week (i.e. 37.5 hours for a full time employee). Any agreement to carry over leave is at the discretion of the line manager, who should make a note of their agreement on the staff member’s annual leave record for the new leave year. Any leave that is carried over must be used up by the end of the new leave year, and cannot be carried over again into a subsequent year.
ENTITLEMENTS
5.3 An employee’s annual leave entitlement is determined by the length of aggregated NHS service as shown below in Table 1 (i.e. any period of time that has been worked in the NHS regardless of whether or not there has been a break in service, will count as reckonable service for annual leave). All previous NHS service must be supported by proof of employment which is normally supplied at the start of employment with the organisation. Please refer any questions or queries in respect of this to the HR department.
5.4 Table 1 – Entitlements Due to increasing numbers of employees working non-standard hours (e.g. hours different to working 7.5 hours, 5 days per week) the organisation has a policy of calculating all annual leave entitlement in hours as shown in the table below based on number of days of annual leave entitlement (27, 29 or 33) multiplied by the standard daily working hours of 7.5
LENGTH OF SERVICE HOLIDAYS (DAYS) HOLIDAYS (HOURS)
On appointment to the NHS 27 days + (usually) 8 27 x 7.5 = 202.5 hours A/L days bank holidays 8 x 7.5 = 60 hours BH After 5 years NHS service 29 days + (usually) 8 29 x 7.5 = 217.5 hours A/L days bank holidays 8 x 7.5 = 60 hours BH After 10 years NHS service 33 days + (usually) 8 33 x 7.5 = 247.5 hours A/L days bank holidays 8 x 7.5 = 60 hours BH EXTENDED PERIODS OF ANNUAL LEAVE
5.5 Employees who wish to take more than two weeks’ leave in any one block should put their request in writing to their line manager at least three months’ in advance to ensure that cover arrangements can be put in place in order to maintain adequate service provision. Policy Ref: MECCG082 Version: 1.1 Approved: 27 September 2018 Review date: September 2021 4
Granting of such requests will be at the discretion of the line manager, who must also consider the needs of the service. If the manager is unable to grant the request then they should respond to the employee’s request in writing stating the reasons why.
SICKNESS AND ANNUAL LEAVE
5.6 If an employee falls ill or is injured immediately before or during a period of annual leave the organisation may allow the employee to either postpone or transfer the holiday to another period in time. For further information on sickness and annual leave please refer to section 10 of the organisations Absence Management Policy.
PROCEDURE FOR BOOKING ANNUAL LEAVE
5.7 Employees must ensure that all annual leave requests have been approved by their line manager before they take their leave. If an employee takes a period of annual leave without prior approval then the organisation will consider that the employee has taken unauthorised absence and this may be unpaid. In addition the employee will be investigated under the organisations Disciplinary Policy & Procedure.
5.8 Employees should not commit themselves to any holiday plans until they have received approval from their line manager that their annual leave request has been granted.
5.9 All requests for annual leave should be made on the appropriate Annual Leave Record Card, giving as much notice as possible to assist in the management of the department or service.
5.10 The general notice period for taking leave is at least twice as long as the amount of leave an employee wants to take (e.g. 2 days’ notice for 1 day’s leave).
5.11 The manager must consider the application taking into account the needs of the service and the Annual Leave Record Card must be signed and returned to the employee, indicating that the leave has been authorised.
5.12 The manager can refuse a leave request but they must give as much notice as the amount of leave requested, for example 2 weeks’ notice if the leave requested was 2 weeks. If this is the case, the reasons for refusal should be included on the form.
5.13 In the event of a dispute regarding an annual leave request, the employee should pursue the organisations Grievance Procedure.
5.14 The organisation has the right to require their staff to take leave at certain times, e.g. bank holidays or Christmas. If the employee is required to take annual leave they must be given a notice period for this that is at least twice as long as the leave they want their staff to take.
5.15 Staff should not book or take any leave they are not entitled to; this is classed as fraud. For example, taking leave when they have already run out or, not recording leave taken. Any instances of fraud or other breach of this policy should be reported to the CCG’s Chief Policy Ref: MECCG082 Version: 1.1 Approved: 27 September 2018 Review date: September 2021 5
Finance Officer (CFO) or Local Counter Fraud Specialist (LCFS). This will be dealt with in line with the Disciplinary and/or Counter Fraud Policy.
Charlie Roberts (LCFS) [email protected] 07881 283 949
You may also contact the NHS Counter Fraud Authority (NHSCFA) via their online reporting mechanism: https://cfa.nhs.uk/reportfraud Or via telephone: 0800 028 4060 The NHSCFA can receive anonymous reports.
BANK HOLIDAYS
5.15 In addition to annual leave entitlement, employees are (usually) entitled to 8 Bank Holidays per annum. In the case of part time staff this entitlement will be pro rata from the full time allowance of 8 days based on the an individuals contracted hours worked per week. From time to time, the actual number of bank holidays that fall within the CCG’s leave year will change – depending on when Easter falls; therefore it is stated that there are 8 bank holidays (as a notional figure) but the actual number will flex according to the leave year.
5.16 Part-time staff will be required to book off any bank holidays that fall on their normal working day out of the pro-rata bank holiday allowance.
CALCULATING ANNUAL LEAVE AND BANK HOLIDAY ENTITLEMENTS
5.17 To make an annual leave calculation in hours, you will need to know: • Length of confirmed NHS service; • Full time annual leave entitlement in hours (found under section 5.3 of this policy); • Current number of hours of work per week; • Full time weekly working hours of work (37.5).
5.18. The Annual Leave calculator is available on the staff intranet to enable you to work out your annual leave based on your individual circumstances but uses the following formula for the calculation:-
Hours of Leave Per Annum = Actual Weekly Hours Worked ÷ Full Time Hours Per Week (37.5) x Full Time Leave Entitlement in Hours
Policy Ref: MECCG082 Version: 1.1 Approved: 27 September 2018 Review date: September 2021 6
6. WORKING EXAMPLES
ANNUALISED HOURS
6.1 Employees who work annualised hours work a certain number of hours over a one year period. They may work differing amounts week to week.
6.2 For those staff who are full time but working an annualised hours contract, the annual leave entitlement will be the same as for any other full time employee, however, this should be calculated in hours and the appropriate number of hours taken per day of annual leave.
6.3 Annual leave for part time employees with annualised hours’ contracts must calculate their annual leave in hours.
6.4 To do this, there must be a calculation of the number of full time equivalent weeks worked in a year.
6.5 The employee and manager must decide how many hours or weeks in a year the employee will work and receive payment for. This can most easily be based on an equivalent using normal part time working principles, i.e. if an employee were to work 25 hours per week for 52.143 (average number of weeks per year). In this instance, the calculation would be as follows:
Example: [1] Hours of Work per Week 25 [2] Total Hours in Annualised 52.143 weeks x 25 hours of work per Period week = 1303.5 [3] Full Time Leave Entitlement 29 days [4] Full Time Standard Weekly 37.5 Hours [5] Full time Leave Entitlement in 7.5 x 29 = 217.5 hours per annum Hours [6] NHS Service 6 years Annual leave for a part timer who works 25 hours per week = [1] 25 ÷ [4] 37.5 x [5] 217.5 =145 hours. Full Time Bank Holiday entitlement of 8 days per annum = 8 x 7.5 = 60 hours Part Time Bank Holiday entitlement = [1] 25 ÷ 37.5 x 60 hours = 40 hours [2] 1300 – 145 hours (annual leave) – 40 hours (bank holidays) = 1115 hours which must be worked during the annualised hours period of one year.
NON STANDARD HOURS
Policy Ref: MECCG082 Version: 1.1 Approved: 27 September 2018 Review date: September 2021 7
6.6 Non-standard hours are generally where an employee completes their working week in 4 or 4.5 days, or they work a 9 day fortnight.
6.7 Full time employees who work compressed hours will keep their existing full time annual leave entitlement, however the leave entitlement should be converted to hours and the appropriate number of hours deducted for the days that are taken as leave.
Example: [1] Hours of Work per Week 37.5 [2] No of Days Worked per Week 4.5 (9 day fortnight) [3] Hours per Day 8.3 [4] Full Time Hours Per Week 37.5 [5] Full Time Leave Entitlement in 27 days [6] Full Time Leave Entitlement in 7.5 x 27 = 202.5 hours per annum Hours [7] NHS Service 1 year [6] Standard full time annual leave entitlement = 7.5 x 27 = 202.5 hours [3] Leave entitlement per day of leave = 37.5/4.5 = 8.3 (8 hours 18 minutes) Pro rata entitlement to take into account 9 day fortnight working arrangement = 202.5/8.3 = 24.33 = 24.5 days annual leave (rounded) per annum.
TERM TIME HOURS
6.8 If employed on a ‘true’ term time contract (i.e. every school holiday is not worked), there is no entitlement to additional annual leave, as the calculation for pay includes payment for annual leave, which must therefore be taken during school holidays. The annual leave entitlement paid for is based upon the number of weeks actually worked in the year. This means that in reality, some of the school holidays that are not worked will be paid for, as part of normal annual leave, and others will be unpaid.
6.9 If not employed on a true term time contract (i.e. some school holidays are worked and other aren’t), a calculation will be done to determine what the annual leave entitlement is based on the number of weeks worked. The employee will then need to nominate the actual days that will be taken as annual leave on their leave card. Calculation for working out term time working is attached below:
Actual no. weeks per annum used 52.143 by payroll to allow for leap years Term Time weeks per year 39 Total NHS Service 2 years
Policy Ref: MECCG082 Version: 1.1 Approved: 27 September 2018 Review date: September 2021 8
Full Time A/L entitlement (weeks) 27 days / 5 days = 5.4 weeks Full Time allowance in Lieu of 8 days / 5 days -1.6 weeks Bank holidays Total no of weeks full leave 7 Weeks entitlement Total number of weeks to be paid 46 weeks (39 +7) Hours of Work (per week) 20 No. of hours in normal working 37.5 week Whole time equivalent hours 0.53 (20 / 37.5 ) Total % of weeks to be paid 0.88% (46 / 52.143) Actual hours worked per year 920 (46 x 20) Hours to be paid each week 17.64 (920 / 52.143)
7. NEW JOINERS, LEAVERS AND CHANGES TO HOURS
CALCULATION OF ANNUAL LEAVE ENTITLEMENT FOR NEW JOINERS
7.1 If a new employee commences part way through the leave year, the entitlement will need to be pro-rata according to their starting date. This is calculated on the basis of the number of complete months between the start date and the end of the leave year plus the number of days worked in the month of joining. For example, someone starting on 10th December would be entitled three full month’s entitlement (for January, February and March) plus 22/31st of one month’s entitlement for December (31 days in December, minus 9 days not worked).
7.2 With effect from the start of the following leave year, the staff member would be entitled to a full year’s entitlement.
CALCULATION OF BANK HOLIDAY ENTITLEMENT FOR NEW JOINERS
7.3 Full time employees commencing their employment part way through the year will be entitled to the bank holidays that are left in that current leave year.
7.4 Part time employees commencing their employment part way through the year will be entitled to the bank holiday left in the current leave year on a pro-rata basis, dependent on their weekly hours worked.
7.5 With effect from the start of the following leave year, the staff member would be entitled to a full year’s bank holiday entitlement (pro-rata for part-time employees).
LEAVING EMPLOYMENT
Policy Ref: MECCG082 Version: 1.1 Approved: 27 September 2018 Review date: September 2021 9
7.5 An employee leaving the organisation will receive the appropriate proportion of their annual leave entitlement for the period of time worked in the current leave year. This is calculated as before using the number of complete months worked, plus the days worked in the month of leaving, less any annual leave taken and Bank Holiday hours (for part-time employees) that have occurred in the leave year prior to the date of leaving.
7.6 Payment may be made for period of time worked in the year less any annual leave already taken, however the organisation reserves the right to require an employee to take any outstanding leave during the employees period of notice.
7.7 Where total leave taken exceeds the accrued total leave entitlement an appropriate deduction will be made from the employees’ final salary. The deduction is calculated by using the hourly rate from all contracted elements of pay (i.e. Annual salary, Fringe, On- call etc.) and processed as non pensionable.
CHANGES IN CONTRACTED HOURS
7.8 Where an employee has changed their contracted hours, their annual leave entitlement will need to be recalculated for the period of time remaining in the current leave year. This is again calculated using the number of complete months worked, plus the days worked in the month of change.
8. LONG SERVICE
8.1 An employee who has achieved either 5 or 10 years NHS service part way through a leave year will be entitled to receive pro-rata entitlement to the additional portion of annual leave for the remaining months of the leave year. The new annual leave entitlement is calculated using the number of complete remaining months left in the annual leave year, plus any days after the anniversary date in the month of change.
Policy Ref: MECCG082 Version: 1.1 Approved: 27 September 2018 Review date: September 2021 10