LTB 405/16 - Pay and Overtime Issues

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LTB 405/16 - Pay and Overtime Issues

No.405/2016

7th July 2016



Pay and Overtime Issues

Further to LTBs 395/16 and 398/16, Royal Mail have notified the Union of a potential problem relating to payment for overtime worked on Saturday 9th and Sunday 10th July 2016.

In their communication issued to managers, Royal Mail say they are shutting down PSP to make changes to the payroll system to process the April 2016 pay award and back pay. As a result, PSP will be locked to all users from 8pm on Friday 8th July 2016 until Tuesday 12th July 2016. During this period it will not be possible to input to PSP.

For weekly paid staff the shutdown of PSP means there will be a one week delay in payment for overtime worked on Saturday 9th and Sunday 10th July 2016.

The closure of PSP between the 8th-12th July 2016 will also mean delays to processing other transactions. Because of the system changes Royal Mail say their payroll teams will be unable to process Employee Change Requests (ECRs) or Assigned Allowances (HR17s) to the usual timescales. ECRs and HR17s submitted between now until Friday 15th July 2016 will be reflected in pay received on Friday 22nd July 2016.

Royal Mail have said that once the PSP system changes have been made, any overtime/allowances earned from Monday 4th April 2016 onward for weekly paid employees and from Friday 1st April 2016 for CWU monthly paid staff will be automatically adjusted and paid at the increased rate. The arrears in pay will also reduce the impact of any weekend overtime being paid late.

Royal Mail’s decision to close PSP at short notice is disappointing. Despite investing millions in a new payroll system, the business is nervous about the scale of processing the pay award and back pay and the potential impact on the system. CWU has sought urgent clarification as to why the business has taken the action this year and what exceptional arrangements could be put in place to ensure members don’t suffer any detriment.

The business has pointed out that similar action was taken in 2014 when it was necessary to calculate back pay. Royal Mail believes that closing PSP is the safest way of avoiding potential disruption to the whole payroll system. The business is not offering any exceptional arrangements because it believes that to do so might also create problems with the system.


Further enquiries on this LTB should be directed to Ray Ellis in the DSG(P) Department.

Yours Sincerely,

Ray Ellis
Acting Deputy General Secretary (Postal)