A] Holiday Pay - How it works SJIB Holiday With Pay Scheme Administration of the Scheme This is administered and controlled by the SJIB. Members are required to calculate and forward to the SJIB their holiday pay contribution on a monthly basis, in order to provide appropriate holiday pay at a future date for their employees. Members are required to provide payment for a total of 30 days (22 annual and 8 local) holidays commencing on the first working Monday in January of each year. What can be included in payments? Payments made into the scheme will cover holiday pay and may also include commitments to top up pay, NAECI pay, staff holiday pay, etc. Such payments must not affect the employees gross pay and cannot be deducted from their contractual earnings. Payment in to the Company Fund Members make monthly payments to the scheme via their own special holiday pay account, which is held by the SJIB. Members must quote their account number on all correspondence. Payments can be made either by cheque or BACS into the Member's account. The pay-in sheets include a calculation table (Form A) to assist members in working out how much they need to pay on any given month. Members will be provided with a balance statement (Form F) each month for their records. Members may also request account information at other intervals by contacting the SJIB. Withdrawing from the Company Fund Members may withdraw monies from their account, providing funds are available, at any time providing such monies have been held by the SJIB for a period of no less than 90 days. Members may wish to draw money for an individual employee or may find it easier to draw a lump sum payment at any given time. Members should complete the standard Holiday Pay Request Form (Form C) and forward it to the SJIB at least three weeks prior to when they require payment. Payment will normally be forwarded to Members by cheque or BACS from the SJIB.
B] Welfare Credit - How it works This scheme works much in the same way as the current combined Holiday Welfare Credit Scheme. Members are required to make a welfare payment for each of their operatives on a monthly basis to provide for such benefits such as Sickness and Accident Benefit, Death in Service Benefit, Dismemberment Benefit, Permanent and Total Disability Benefit and Private Health Care. Staff will continue to be exempt from these payments but will still qualify for the same benefits as operatives, provided they are on the SJIB list of named individuals who are entitled to benefit. Making Payments into the Scheme and Recording Leavers Members will make payments to the scheme on a monthly basis. The SJIB will issue a payment/notification sheet each month (Form D) with details of each operative on it e.g.: Name, National Insurance Number, etc. and a four-weekly payment block on it. The Members will calculate the total welfare credits due and multiply it with the rate shown on the payment/notification sheet and return it to the SJIB. Payments will normally be made to the SJIB by cheque or BACS. Notification of New Starts/Leavers Members will be required to notify the SJIB on a monthly basis of any new employees who commence employment with them or employees who have terminated employment. This information can be given on the notification/payment sheet for new starts (Form E). Claiming Benefits for Operatives The relevant benefits may be claimed by Members on behalf of their operatives providing such operative has accrued the required amount of welfare credits on his record prior to the claim being made. The SJIB will hold a database record or each operative and their contributions and this will be checked for validation before any claim(s) is paid. Sickness and Accident Benefit can be claimed by completing the standard claim form and returning it with medical certification. Death in Service Benefit, Dismemberment Benefit, Permanent and Total Disability Benefit can be claimed by notifying SJIB in writing with relevant information in order that the SJIB can forward a claim to their insurers. Private Health Care Treatment can only be claimed by contacting the SJIB by telephone, prior to any such treatment taking place.
SJIB Holiday Pay and Welfare Credit Scheme Registration for the Scheme Company Requirements In order to register for the scheme, Members must notify the SJIB in writing. This request must include the date that the company wishes to be registered from. The following information is also required by SJIB (Form G): Details of Bank Account to which payments can be refunded. List of Operatives to be included in the Welfare Credit Scheme (this may not be required if the company is already registered in current combined Holiday Welfare Credit Scheme and SJIB holds operatives' details). Company authorised signatories (Form B) SJIB Requirements Upon receipt of the above information the SJIB will set the company up with their own special holiday pay account. The account number will be forwarded to the member in confidence for their information and in order that they can quote it on all correspondence. Accrued Holiday Pay from Combined Holiday Welfare Credit Scheme As soon as the Member Company has been registered and provided with an account, the SJIB will transfer all accrued holiday credits held for the company's employees to the new fund. Members will be provided with a breakdown of the accrued payment and also issued with an account balance as a starting point for the new scheme. The Welfare element will remain lodged in the employee s name. The SJIB will despatch the first pay in sheets for the new holiday pay fund together with the first notification/payment sheets for the welfare credit in due course to the Member.
Form A SJIB HOLIDAY PAY AND WELFARE CREDIT SCHEME PAY-IN FORM FOR THE MONTH OF 10. Company Name Address A] HOLIDAY PAY EXAMPLE ONLY Postcode: Category of Individuals Rate per Month in 10 Technician Shop Rate 269.81 Technician Travel Rate 303.00 Approved Electrician Shop Rate 236.25 Approved Electrician Travel Rate 269.06 Electrician Shop Rate 215.25 Electrician Travel Rate 248.25 Labourer Shop Rate 166.31 Labourer Travel Rate 199.13 3 rd Stage Apprentice shop rate 159.94 3 rd Stage Apprentice travel rate 188.44 2 nd Stage Apprentice shop rate 110.44 2 nd Stage Apprentice travel rate 134.25 1 st Stage Apprentice shop rate 75.94 1 st Stage Apprentice travel rate 95.44 Other Payments = No. Employees in Category Total Amount Payable Holiday Pay Other Payments = You may wish to include monies to cover other holiday payment commitments e.g. Staff holiday pay, NAECI Holiday Pay and extra monies to cover for top-up for nightshift, or responsibility money etc. Payments made will be available for use for payment of holidays at any time after 90 days from the receipt of payment date by the SJIB. B] WELFARE CREDIT This is the amount of money payable in order to provide cover for the welfare benefits e.g. Death Benefit, sick pay etc. Total Welfare Credit as per the attached listings: Total Holiday Pay: These should be separate payments Please place tick mark as appropriate: Cheque enclosed Payment made by BACS Transfer Date of Transfer / /
SJIB HOLIDAY PAY SCHEME Authorised Signatories Set-up Form B The following are a list of signatories authorised on behalf of the company to request payout facilities from the above scheme. Print Name Signature Position Held Print Name Signature Position Held Print Name Signature Position Held Print Name Signature Position Held Print Name Signature Position Held Company Name Company Address Post Code Authorised Signatory Position of Signatory
SJIB HOLIDAY PAY SCHEME Form C HOLIDAY PAY REQUEST FORM (To be completed by all companies requiring payment from their Holiday Pay Fund Account.) Company Name: Company Account Number: Amount of Holiday Pay: ( ) *To be paid out to how many employee s Authorising Signatory: (Please print in Block Letters) Position of Signatory: Payment Request Date: * The SJIB administration fee is 3.50 per employee per transaction and will be deducted from the amount requested by the company. Members should comment to that effect when paying the employee s holiday pay. Important: Please note that the SJIB must receive request for payment at least 3 weeks prior to date holiday pay is to be paid to operative. Company Stamp: Date Signed: Signature:
SJIB Welfare Credit Leavers Report Form D Company Name Address N I Number Postcode: Surname Forename Date Date Date Date Welfare Only Date of Leaving Total Credits at 10.90 Final Total
SJIB Welfare Credit Scheme New Starts Report Form E Company Name Address Postcode: N I Number Surname Forename Address Tick Box as Required Date Date Date Date Welfare Only Employee Start Date Total Credits at 10.90 Final Total Note: This form should be completed in respect of new employees who are not recorded on your 4 weekly Return Sheet and returned to the SJIB with your 4 weekly return.
Form F SJIB Holiday with Pay Scheme Statement Company Name Address Please refer to this Account Number when making enquiries Account Number. Postcode: Date Date Our Ref. Details Debit Credit Balance Current 30 Days 60 Days 90 Days Balance
Form G REGISTRATION AND DATA SET-UP SJIB HOLIDAY PAY AND WELFARE CREDIT SCHEME Employer: Employer Address SCOTTISH JOINT INDUSTRY BOARD The Walled Garden, Bush Est., Midlothian EH26 0SB EFFECTIVE REGISTRATION DATE: Company Bank Account Details: Bank Name & Address Bank Account No. Bank Sort Code / / NI No. Grade Surname Forename Address Postcode Welfare Credit Value TOTAL
Scottish Joint Industry Board For The Electrical Contracting Industry EMPLOYERS VERSION Rule 3.1 Holidays with Pay a) Leave year The Leave Year shall commence on the first working Monday in January and end on the Sunday before the first working Monday the following year. b) Holiday entitlement An employee with one full years service with his employer shall be entitled to 30 days of paid holiday per annum, comprising 22 days of annual holiday and eight days of local holiday. The full entitlement is to be taken in each leave year. c) The recognised holidays in any year shall be as follows: (i) The locally recognised Spring, May Day and Autumn holidays. (ii) Spring week of annual holiday (to be taken by mutual agreement). (iii) Twelve days holiday in summer commencing from stopping-time on the Thursday immediately preceding the summer holiday fortnight and ending at the normal startingtime on the third Tuesday thereafter. (iv) Five annual and five public holidays at the Christmas/New Year period. Such holidays shall normally be taken to coincide with the Builders holidays. The exact timing of these ten days of holidays in any year to be agreed by the SJIB. Employees who are required to work over the Christmas and New Year period shall take the days so worked at times mutually agreed with their employer. Local holidays shall be arranged by mutual agreement in accordance with the usual practice for fixing holidays in the district concerned. Whilst it is desirable that the local holidays should generally conform to those observed by local custom, this shall not preclude other mutually acceptable arrangements in exceptional circumstances such as when the work site is not in the local area where the employees reside.
d) Payment for holidays (i) The full 30 days of either annual or local holidays will be paid at normal earnings as defined in Sections 221-224 of the Employment Rights Act 1996. The Formula for calculating Holiday Pay for the 30 days that attract top-up payments is as follows: 37.5 x Normal Earnings over the last 12 weeks worked Minus 37.5 x Graded Hourly Number of hours worked in the last 12 week period Rate = Value of the Top-up payable per week of holiday. (ii) Normal earnings include: Basic rate of pay for all hours worked. Responsibility Money. Regular Weekly Bonus Payments. Shift and Night Work premium. London Rate Normal earnings DO NOT include: The premium value for overtime hours worked over and above the basic number of hours. Ad hoc bonus payments. Daily travelling and Lodging Allowances. e) Recovery related to leave taken Where the proportion of holidays taken by an employee exceeds his accrued holiday entitlement, the employee will be required to, on termination of employment, compensate his employer for the balance by means of deduction from final earnings. In these circumstances, the employer will inform the employee in writing of the amount to be recovered. f) Lay-off and suspension Holiday/ Welfare credits are not accrued during periods of lay-off as a result of circumstances out with the control of the employer. Nor are they accrued during suspension as a result of disciplinary action. g) Attendance before and after local holidays i) Employees are required to work the full normal working hours of the working days immediately preceding or following a local holiday. Failure to do so except in cases described in ii) below, will result in non-payment for such local holidays. Any employee who leaves his workplace early and without permission or returns later than his required starting time after holidays will be dealt with in accordance with the disciplinary procedures in Section G of the SJIB Handbook. ii) Employees absent on authorised leave, or through sickness or accident certified to the satisfaction of the employer, on days immediately preceding or following a local
holiday shall be paid for each day of public holiday concerned. No employee shall receive both sick pay and holiday pay for the same period. k) Work during Holidays i) Where it is arranged that an employee shall take his Annual Holiday at a time other than during the recognised local Fair or Trades holiday fortnight, no premium payments shall be payable for work done by the employee during the recognised local Fair or Trades holiday fortnight. ii) Where an employer, having duly informed an employee of his 12 days summer holiday period thereafter requires the employee to work during that period, such employee shall be entitled to premium payments as follows: - First Friday and Monday of the holiday - Double-time. All other days - Time-and-a-half. iii) Employees required to work during the Christmas/New Year, Spring, May or Autumn holidays shall be paid as follows: - First working day of the year - Double-time All other days - Time-and-a-half. iv) Any employee who is unable to take a holiday at the time decided upon by the employer either because of accident or sickness or because he is required by the employer to work during that period shall be granted his holiday by the employer as soon thereafter as is reasonably convenient. h) Travelling Fares Travelling fares only shall be paid to employees working away from home and returning home at the recognised holiday periods except in the case of Christmas Day/Boxing day, which for the purpose of this Rule shall be regarded along with the three days at New Year as one holiday. Employer s example for 2010 Employee on Travel Rate Graded rate of pay X 7.5 hours X 30 (day annual holiday) 52 Weeks 14.35 x 7.5 x 30 = 62.09 per week to cover Holiday Pay 52 Employee Holiday Pay per year 3228.68 Employer saving in 2010 with NI Contribution@ 12.8% = 413.27 per year per employee
Sample letter to be issued to your employees 20 October 2010 Dear Employee, Holiday with Pay Scheme As a result of the Working Time Regulations, and subsequent amendments to that legislation, payment of holiday pay through the traditional Holiday Welfare Credit Scheme of the SJIB is becoming increasingly complicated. The SJIB has therefore introduced a new Holiday Payment Scheme in which your company has chosen to participate. Under the new scheme your company will no longer accrue individual Holiday Credits on your behalf for each week worked. Instead your company will accrue and deposit funds to the value of your accrued holiday entitlement into a Holiday Account maintained by the SJIB The operation of this new scheme has been discussed and agreed with AMICUS the Trade Union representing employees who s Terms and Conditions of Employment are covered under the SJIB National Working Rules. This new scheme does not effect the number of days of holiday with pay that you are entitled to in each leave year neither does it affect your Welfare Benefit entitlement. Resulting from the introduction of this new scheme the SJIB have amended Rule 3.1 of the National Working Rules a copy of which will be forwarded to you by your company declaring a variation to your current Terms and Conditions of Employment. This communication is to inform you of the new scheme. However if you have any questions about the new scheme either now or at any time in the future please do not hesitate to contact the person in your company who deals with the administration of your holiday pay. Yours sincerely, Secretary The SJIB National Board ratified the foregoing on 29 th January 2003 as the accepted Holiday Scheme for the industry in Scotland.
Scottish Joint Industry Board For The Electrical Contracting Industry OPERATIVE VERSION Rule 3.1 Holidays with Pay i) Leave year The Leave Year shall commence on the first working Monday in January and end on the Sunday before the first working Monday the following year. j) Holiday entitlement An employee with one full years service with his employer shall be entitled to 30 days of paid holiday per annum, comprising 22 days of annual holiday and eight days of local holiday. The full entitlement is to be taken in each leave year. k) The recognised holidays in any year shall be as follows: (i) The locally recognised Spring, May Day and Autumn holidays. (ii) Spring week of annual holiday (to be taken by mutual agreement). (iii) Twelve days holiday in summer commencing from stopping-time on the Thursday immediately preceding the summer holiday fortnight and ending at the normal startingtime on the third Tuesday thereafter. (v) Five annual and five public holidays at the Christmas/New Year period. Such holidays shall normally be taken to coincide with the Builders holidays. The exact timing of these ten days of holidays in any year to be agreed by the SJIB. Employees who are required to work over the Christmas and New Year period shall take the days so worked at times mutually agreed with their employer. Local holidays shall be arranged by mutual agreement in accordance with the usual practice for fixing holidays in the district concerned. Whilst it is desirable that the local holidays should generally conform to those observed by local custom, this shall not preclude other mutually acceptable arrangements in exceptional circumstances such as when the work site is not in the local area where the employees reside.
l) Payment for holidays (iii) The full 30 days of either annual or local holidays will be paid at normal earnings as defined in Sections 221-224 of the Employment Rights Act 1996. The Formula for calculating Holiday Pay for the 30 days that attract top-up payments is as follows: 37.5 x Normal Earnings over the last 12 weeks worked Minus 37.5 x Graded Hourly Number of hours worked in the last 12 week period Rate = Value of the Top-up payable per week of holiday. (iv) Normal earnings include: Basic rate of pay for all hours worked. Responsibility Money. Regular Weekly Bonus Payments. Shift and Night Work premium. London Rate Normal earnings DO NOT include: The premium value for overtime hours worked over and above the basic number of hours. Ad hoc bonus payments. Daily travelling and Lodging Allowances. m) Recovery related to leave taken Where the proportion of holidays taken by an employee exceeds his accrued holiday entitlement, the employee will be required to, on termination of employment, compensate his employer for the balance by means of deduction from final earnings. In these circumstances, the employer will inform the employee in writing of the amount to be recovered. n) Lay-off and suspension Holiday/welfare credits are not accrued during periods of lay-off as a result of circumstances out with the control of the employer. Nor are they accrued during suspension as a result of disciplinary action. o) Attendance before and after local holidays i) Employees are required to work the full normal working hours of the working days immediately preceding or following a local holiday. Failure to do so except in cases described in ii) below, will result in non-payment for such local holidays. Any employee who leaves his workplace early and without permission or returns later than his required starting time after holidays will be dealt with in accordance with the disciplinary procedures in Section G of the SJIB Handbook. v) Employees absent on authorised leave, or through sickness or accident certified to the satisfaction of the employer, on days immediately preceding or following a local
holiday shall be paid for each day of public holiday concerned. No employee shall receive both sick pay and holiday pay for the same period. q) Work during Holidays i) Where it is arranged that an employee shall take his Annual Holiday at a time other than during the recognised local Fair or Trades holiday fortnight, no premium payments shall be payable for work done by the employee during the recognised local Fair or Trades holiday fortnight. ii) Where an employer, having duly informed an employee of his 12 days summer holiday period thereafter requires the employee to work during that period, such employee shall be entitled to premium payments as follows: - First Friday and Monday of the holiday - Double-time. All other days - Time-and-a-half. vi) Employees required to work during the Christmas/New Year, Spring, May or Autumn holidays shall be paid as follows: - First working day of the year - Double-time All other days - Time-and-a-half. vii) Any employee who is unable to take a holiday at the time decided upon by the employer either because of accident or sickness or because he is required by the employer to work during that period shall be granted his holiday by the employer as soon thereafter as is reasonably convenient. r) Travelling Fares Travelling fares only shall be paid to employees working away from home and returning home at the recognised holiday periods except in the case of Christmas Day/Boxing day, which for the purpose of this Rule shall be regarded along with the three days at New Year as one holiday.