ABP Annual Leave Policy

Purpose
The Annual Leave Policy summarises how annual leave is managed within ABP.

Scope
This Policy applies to everyone that works for or on behalf of ABP (including any group company of ABP).

Policy Statement
This policy sets out ABP’s rules in relation to annual leave.

ABP encourage all employees to take their full entitlement and to spread out their holiday throughout the year.

Responsibilities
All People Managers are responsible for ensuring those reporting to them are made aware of and understand this
Policy.

The Head of Employee Relations and Policy has the responsibility for ensuring the maintenance, regular review
and updating of this policy. ABP can vary this policy. Such revisions, amendments or alterations to the policy can
only be implemented following consideration and approval by the Chief Human Resources Officer.

Policy Details
Entitlement
Annual leave entitlements are set out in terms and conditions of employment, which are issued to all employees.
All terms and conditions of employment should have clauses that cover:

• whether Bank and Public Holidays are granted as paid leave

• the amount of annual leave days allowed in a year
• the breakdown of entitlement on a pro-rata basis
• how annual leave not taken or exceeded will be treated when leaving employment.

Some employees/groups of employees will have different entitlements; annual leave entitlement is specifically
stated in an individual employee's contract of employment.

Annual leave and Bank Holiday entitlements stated in a contract of employment are inclusive of the statutory paid
annual leave, currently 28 days per annum for a full-time employee. Employees cannot agree to a lower annual
leave entitlement than the statutory level. ABP terms and conditions of employment cover annual leave and Bank
Holidays which in total exceed the statutory required minimum of 28 days.

Part-time employees will receive a pro-rata entitlement of annual leave and paid Bank Holidays (if applicable).

Untaken Leave
The leave year is normally the calendar year. Leave not taken during the leave year will usually be forfeited. Each
port/location may have different local rules, in the absence of any formal local arrangement the following will apply:

If work pressures have prevented an employee taking their full leave entitlement a "carry-over" of 5 days to the
next leave year may be authorised by the appropriate Port Manager or Director. Leave outstanding in excess of 5
days will be forfeited.

Payment for leave not taken will only be made to employees leaving the Company (on a pro-rated basis according
to the service during the year).

1
Payment of Annual Leave
Any payment for a period of annual leave should be based on basic pay plus any normal shift premium or
attendance allowance. Calculating pay for annual leave depends on the individual employee's basis of pay. For
those employees whose remuneration varies according to output (i.e. piece rates or productivity bonus
arrangements but not voluntary overtime) the holiday pay should be calculated by reference to section ii below:

1. Employees paid a fixed salary (fixed hours and pay) – where an employee's normal working hours do
not vary, a payment in lieu for annual leave is based upon the basic hours contracted to work.
2. Employees paid a fixed salary with additional piece work or commission (hours constant but pay
varies) – where an employee's pay varies with the amount of work undertaken (e.g. piecework) or when
pay is partly made up of variable bonuses or commission directly related to that week/month's output then
the pay is the average hour rate multiplied by the normal working hours. For an average hourly rate, divide
the weekly pay over the previous 12 weeks by the number of hours worked during the same period.
3. Employees working shifts (hours and pay vary in a set pattern) – where an employee works shifts that
are a set pattern but the number of hours and the pay varies it will be necessary to work out an average.
For an average, add up all the hours worked in the last 12 weeks and divide by 12.

Notes

• Overtime - pay for overtime hours is not included in calculating the hourly rate unless it is guaranteed
overtime, i.e. required by the contract of employment.
• Bonuses – pay for general bonuses are not included in calculations e.g. All Employee Bonus Scheme, Key
Management Bonus Scheme. Bonuses that specifically relate to actual levels of production by the
employee individually are included in the above calculations e.g. commission or individual performance-
related bonuses.
• Average – if an employee does not have 12 weeks experience to base figures upon either use the actual
period known or look at the experience of employees, whichever is the most appropriate.

Managers are responsible for monitoring whether payments should be made to employees who are covered by i.
to iii. above and advising Payroll accordingly.

Sickness During Annual Leave

Where an employee reports as sick at the time when leave is to be taken then the employee will be able to defer
whole or part of the leave until an agreed later date. If an employee falls sick whilst on leave, they are regarded
as on leave until the booked leave period ends, with sickness absence and certification thereafter. Only on
provision of a Fit Note may annual leave be restored at the discretion of the Port Director/ Manager or Chief
Executive / Director (for Head Office).

Long Term Sickness

For employees on long term sickness where the absence covers two leave years the following arrangements will
apply:

• Leave carried forward from earlier years (i.e. the year prior to commencement of absence) but not taken
will be forfeited.
• Leave taken in the year in which the absence commences is offset against contractual entitlement.
• Untaken leave and Bank Holidays missed due to illness absence in the previous leave year elapsed will
be granted (or, with the approval of the Port Director/ Manager or Chief Executive / Director for Head
Office), paid out up to a total maximum of 28 days.
• Full annual leave plus Bank Holidays missed, up to the date in the leave year when the employee returns
or is severed due to ill health, will be granted or a payment made in lieu.

2
Requesting/Monitoring Annual Leave
For annual leave to be taken express consent must be given by the line manager. Line managers must make
arrangements for annual leave to be monitored and records kept. An official record must be kept that is available
for both the employee and line manager to access, see Appendix 1 for an example of a 'leave sheet'. As different
locations/ departments have different ways of requesting and authorising annual leave all new employees should
be informed, as part of their induction, of any local rules regarding annual leave.

Other Absences
The same system used for requesting and authorising annual leave should be used to request other types of
absences from work (e.g. study, exam, public service duties, compassionate, funeral, parental leave etc).

Breaches / Disciplinary Action

Any employee who breaches this Policy may face disciplinary action, which could result in dismissal for gross
misconduct. Any non-employee who breaches this Policy may have their contract terminated with immediate
effect.

Further Information
If you have any questions about this Policy, please contact your line manager, or regional/functional HR team.

Policy Control Table

Policy Control

Name of Policy Annual Leave

Date approved by ABP Board -
Last Review Date April 2017
Revision History December 2022
New Review Date December 2024

Related Policies, Procedures, Guidance etc Additional Holiday for Additional Notice of Resignation Policy, Attendance
Management Policy, Medical Capability Policies
Relevant Legislation Working Time Regulations (SI 1998/1833), Employment Rights Act 1996
Policy Owner Chief Human Resources Officer
Lead Contact / Author Head of Employee Relations and Policy
Version and date issued Version 1, Date Issued December 2022