Pro-rata Free Shares allocation

[POSTMAN]

https://www.myroyalmail.com/news/nation ... allocation" onclick="window.open(this.href);return false;

Under the Free Shares Offer, part-time eligible employees will be given a pro-rata number of Free Shares

When we sent eligible employees the Guide to the Royal Mail Employee Share Offers we confirmed that part-time employees will be given a pro-rata number of Free Shares. We confirmed this pro-rata number of Free Shares will be based on eligible employees’ paid hours between 10 July 2013 (the date the Government made its Parliamentary Statement) and a cut-off date several days before the expected date of the flotation.

The cut-off date has today been confirmed. It is 13 October 2013. Only hours paid on or before that date will count towards your entitlement.

Part-time employees’ paid hours in the period 10 July 2013 to 13 October 2013 inclusive are compared with the number of hours an equivalent full-time employee would have been contractually required to work in that three month period. A pro-rata allocation is then made accordingly.

Calculations of the number of Free Shares employees will receive will not take place until after the flotation. It is not possible for us to give any indication in advance of the number of Free Shares employees will individually receive.

It is important to remember that the value of shares can go down as well as up.

Allocation notice

All eligible employees will receive what’s called an ‘allocation notice’ shortly after Royal Mail is floated on the London Stock Exchange. This formal document will tell you how many Free Shares you have been given and their value when they were given to you.

[dvbuk55]

"Allocation notice

All eligible employees will receive what’s called an ‘allocation notice’ shortly after Royal Mail is floated on the London Stock Exchange. This formal document will tell you how many Free Shares you have been given and their value when they were given to you."

And that you won't be able to sell them and get some money for donkeys years so in essence they are worth FA.

[wabbithunta]

If I recall correctly you cannot sell them for at least three years from receipt of your shares, and you will be taxed on them if you did.
Someone correct me if I'm wrong, please?

Better to hold on to any you have for about five years.. assuming they are going to be worth anything at all.

[clashcityrocker]

Does it say anywhere they can shove their shares up their collective pro rata arses?

[Brainache]

According to the prospectus, if a part-timer has ANY leave(including maternity etc) between 10 July & 13th Oct, They will only get shares based on their basic hours and not on actual (basic + O/T) hours. .

[Lincox]

Yes it does Clash. If you dont want them there is a form to submit and then you wont be given any of them. Mine are probably already on a plane to Canada.

[clashcityrocker]

Yes it does Clash. If you dont want them there is a form to submit and then you wont be given any of them. Mine are probably already on a plane to Canada.

Mine too but opting out just seems a bit passive.
Shoving them up their arses seems a bit more proactive.

[OnAFlyer]

If I recall correctly you cannot sell them for at least three years from receipt of your shares, and you will be taxed on them if you did.
Someone correct me if I'm wrong, please?

Better to hold on to any you have for about five years.. assuming they are going to be worth anything at all.

That's right, but you pay tax and NI on the lower amount of the value when you got them or the value when sold. So if we get £2k worth and you sell at £3k worth after 3 years you only pay tax on £2k.

[barrowc]

According to the prospectus, if a part-timer has ANY leave(including maternity etc) between 10 July & 13th Oct, They will only get shares based on their basic hours and not on actual (basic + O/T) hours. .

Given that 10th July to 13th October would encompass the main summer holiday period and thus most staff will have had some form of A/L, does this really mean that almost all part time staff will get a pro-rata to their basic hours even if they normally work much longer on O/T?

The relevant details are at http://www.myroyalmail.com/free-shares-eligibility:

* Eligible part-time employees will be given a pro-rata number of Free Shares (up to the maximum number of shares allocated to a full-time eligible employee) based on their paid hours between 10 July 2013 and a cut-off date several days before the date of flotation. We will tell employees of this date as soon as it has been decided and can be publicly announced.

* Part-time eligible employees on paid or unpaid leave (including those on maternity or paternity leave) during part of or all of the period between 10 July 2013 and the cut-off date referred to above will have their entitlement based on their standard contractual hours.

[Lounge Lizard]

https://www.myroyalmail.com/news/nation ... allocation

Under the Free Shares Offer, part-time eligible employees will be given a pro-rata number of Free Shares

When we sent eligible employees the Guide to the Royal Mail Employee Share Offers we confirmed that part-time employees will be given a pro-rata number of Free Shares. We confirmed this pro-rata number of Free Shares will be based on eligible employees’ paid hours between 10 July 2013 (the date the Government made its Parliamentary Statement) and a cut-off date several days before the expected date of the flotation.

The cut-off date has today been confirmed. It is 13 October 2013. Only hours paid on or before that date will count towards your entitlement.

Part-time employees’ paid hours in the period 10 July 2013 to 13 October 2013 inclusive are compared with the number of hours an equivalent full-time employee would have been contractually required to work in that three month period. A pro-rata allocation is then made accordingly.

Calculations of the number of Free Shares employees will receive will not take place until after the flotation. It is not possible for us to give any indication in advance of the number of Free Shares employees will individually receive.

It is important to remember that the value of shares can go down as well as up.

Allocation notice

All eligible employees will receive what’s called an ‘allocation notice’ shortly after Royal Mail is floated on the London Stock Exchange. This formal document will tell you how many Free Shares you have been given and their value when they were given to you.

So is this NOT widely known ?
And will there be many part-timers after 13th October saying that they would have worked more overtime since 10th July had they known this ?

[TrueBlueTerrier]

According to the prospectus, if a part-timer has ANY leave(including maternity etc) between 10 July & 13th Oct, They will only get shares based on their basic hours and not on actual (basic + O/T) hours. .

Given that 10th July to 13th October would encompass the main summer holiday period and thus most staff will have had some form of A/L, does this really mean that almost all part time staff will get a pro-rata to their basic hours even if they normally work much longer on O/T?

The relevant details are at http://www.myroyalmail.com/free-shares-eligibility:

* Eligible part-time employees will be given a pro-rata number of Free Shares (up to the maximum number of shares allocated to a full-time eligible employee) based on their paid hours between 10 July 2013 and a cut-off date several days before the date of flotation. We will tell employees of this date as soon as it has been decided and can be publicly announced.

* Part-time eligible employees on paid or unpaid leave (including those on maternity or paternity leave) during part of or all of the period between 10 July 2013 and the cut-off date referred to above will have their entitlement based on their standard contractual hours.

No the way I read it, and I may be wrong, is because they used the word ON instead of WHO HAVE TAKEN, they mean that during those periods of leave, their basic contracted only hours will be used. If they have worked overtime on their leave then still only the basic contracted hours count towards the shares.

[Brainache]

Sounds like a stitch up to me - I had A/L during that time and also worked quite a few of my rest week days. My average hours over that period are probably about 35hrs a week compared to my 30hrs basic.

[Lincox]

I have read paid leave or unpaid leave to mean leave other than Annual Leave. I stand to be corrected, but to penalise part time staff who have taken some Annual Leave during that period would seem even under Royal Mail standards to be taking the p.ss.

[barrowc]

I agree that it would be insane for A/L to be included in this if it was the case that any leave at all reset your entitlement to just your basic hours.

In fact, I assume this clause just means that the basic hours will be used in the calculation for any days you were off without basing the whole thing on your basic hours. So if you are contracted to 25 hours but do 39 hours every week and were off for half of the relevant period you will end up at 32 hours.

However, that clause is open to multiple interpretations so it would be very useful for Royal Mail to unambiguously clarify what it is intended to mean. All of my part-time colleagues are rightly unhappy about the whole pro-rata thing in the first place so we don't really need any more unfairness as far as these shares are concerned