Following a recent review of the Partnership's holiday pay policy it became clear that Partners who receive certain additions to pay, such as premiums for working on Sunday or bank holidays, have not been paid correctly under the Working Time Regulations legislation. The Partnership Board has therefore decided to make one-off additional payments to those affected.
Around 69,000 current Partners will receive an additional one-off payment this month reflecting the amounts due to them back dated to 2006. Individual payments will vary according to pay and shift patterns, with more than half of the recipients receiving under £120.
The cost to the Partnership of these repayments and associated expenses will be around £40 million. This one-off cost will be reported in our half-year results in September. However, it will not be deducted from this year's Partnership Bonus pool. We expect future pensions liabilities to increase by approximately £7m as a result.
The Partnership's pay systems have been updated to ensure that all future holiday payments are correct. This change is expected to add around 0.5 per cent to our annual pay costs.
Tracey Killen, Director of Personnel, said: 'As soon as we established that we were not implementing the Working Time Regulations correctly, we worked quickly to make the repayments to our Partners in a way that is both fair and responsible.'