About the corrective payments
1. Why are NHS employers making corrective payments?
The NHS Terms and Conditions of Service (AfC) Handbook states that when you take annual leave you should be paid as if you are at work. Following a recent Court of Appeal decision, NHS employers have agreed that the calculation of pay during annual leave should include regularly worked overtime.
2. Why is this happening now?
The NHS Staff Council has agreed a framework to help NHS employers make corrective payments to eligible employees for the period between 1 April 2019 and 31 March 2021.
3. Will the NHS Terms and Conditions of Service (AfC) Handbook need to change?
No. The NHS Terms and Conditions of Service (AfC) Handbook will not need to change. National discussions have taken place to clarify how NHS employers should interpret section 13.9 of the handbook. NHS employers and trade unions have agreed a framework for employers to assess both eligibility and the value of any corrective payments up to 31 March 2021.
4. What pay elements are covered by the framework agreement?
All pay for regularly worked overtime, which is time above the individual's contractual hours, including time above standard FTE (full-time equivalent) for the grade and additional standard time for part-time staff.
5. What counts as overtime?
Depending on local policy and practice, overtime, or additional standard time, is any paid time above your contractual hours, normally worked either as time after your normal finish time (for example a shift overrun where you had to continue working) or volunteering for additional shifts agreed in advance as overtime.
Working additional hours on an NHS bank does not qualify as overtime.
6. What is the corrective pay period?
The framework agreement provides for corrective payments covering the financial years 2019-2020 and 2020-2021 only. An eligible employee may receive a corrective payment for one or both of the financial years, as outlined below under the eligibility FAQ section.
7. Why have financial years been used?
The corrective payments cover pay for overtime during the two financial years of 2019-20 and 2020-21. This time period has been selected because:
- It enables corrective payments to be implemented quickly from a data and payroll processing perspective.
- It provides a corrective payment for the two-year period prior to make sure overtime is included in the calculation of holiday pay from 1 April 2021.
8. What information should individuals get from their NHS employer about the corrective payments?
Staff will be provided with personal information about how their corrective payment has been calculated. NHS employers will also provide information to staff about how questions on the calculations will be answered generally.
In the hopefully rare circumstances, where an employee does not believe that their overtime payments and any corrective payment has been correctly calculated, we would encourage conversations with line managers to address this issue in the first instance. NHS employers will agree an appeals process with trade unions under local partnership working arrangements to resolve any issues.
9. Are Scotland, Wales and Northern Ireland included in 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.