Holiday Pay and Overtime Resources and FAQs

Over recent months, UNISON has led negotiations to secure a framework for NHS staff working under NHS terms and conditions (Agenda for Change) in England to ensure that they receive their correct holiday pay.

The NHS terms and conditions handbook, under section 13 already clearly states that pay should be calculated based on what an individual would have received if they had been at work. Until now employers have not consistently included regular overtime in these calculations.

These negotiations were only possible thanks to UNISON members taking legal claims, through a successful organising strategy, which helped to strengthen our position to collectively bargain on behalf of our members.

UNISON made it clear from the outset that employers need to fix historic miscalculations of holiday pay and to prevent these underpayments from reoccurring.

After working through a range of varied and complex fixes to remedy the historic underpayments, trade unions and employers agreed that the fairest approach would be to apply a single percentage to all eligible overtime, including additional time worked by part time staff.

The agreement means that employers will go back 2 full financial years (1 April 2019 to 31 March 2021) and correct historic underpayments for employed staff who meet the eligibility criteria. Payments will be made between April and September 2021.

UNISON members with existing legal claims will be approached by their employer with a settlement offer and should speak to their Thompsons’ legal advisor before proceeding.

To find out if you are eligible, please check the joint union and employer communications materials, which includes a set of FAQs. You can read more about the framework in our branch guide (please see the Resources below).

Here’s a video podcast answering some FAQs about the agreement:

This agreement covers England only. An agreement has already been reached in Scotland. Employers in Cymru Wales and Northern Ireland have indicated they will enter discussions with trade unions to resolve this issue in their respective administrations.

Resources