Flexible Arrangements to purchase holiday pay

Following the agreement by the National Joint Industry Board to introduce flexibility regarding the arrangements for holiday pay within the Combined Holiday and Welfare Scheme, any employer wishing to change their existing arrangements must make an application to the sub-committee of the JIB.

The options are as follows:

Status Quo - i.e. to carry on participating in the existing scheme (No further action necessary).
Flexible Holiday Payments - whereby employers will continue to purchase the welfare credit (i.e. the insurance only element of the combined credit) for each employee. Holiday pay would not be allocated to individual employees, but would be paid into the ECIBA using the top-up scheme. These monies can be claimed back by the company when holiday payments are due. Payments into the scheme must be made at regular intervals and after the fourth monthly payment deposit, the employer would be able to redeem the first three months'' deposits.
Conditions:
1. The employer will be required to show the weekly holiday pay amount on each individual operative''s payslip.
2. The employer will be required to consult with the operatives and obtain their written acceptance of the new procedures.
Benefit Only - Some employers have indicated they would prefer to pay holiday pay direct (rather than using the ECIBA scheme) and would therefore prefer to purchase the "benefit only" element of the credit. This will be operated on a pilot basis. Conditions:
1. Holiday payments for operatives will no longer be exempt for national insurance contributions for both the employer and employee.
2. The employer will be required to consult with their operatives and obtain their written acceptance of the new procedures.

To apply please either write to:
Martyn Burnley
General Manager - ECIBA
ECA Court
24-26 South Park
Sevenoaks
Kent
TN13 1DU
Direct line: 01732 471710
Or by e-mail contact martyn.burnley@eca.co.uk.