PURCHASE OF ANNUAL LEAVE (POAL)

The CWU are aware of the level of confusion and frustration felt by our members and reps alike regarding the loss of access to purchase additional annual leave via salary sacrifice. This LTB sets out to explain the challenges which exist but more importantly the work the CWU is undertaking with Royal Mail to try and resolve the situation.

Within the Way Forward agreement of 2000, the CWU and Royal Mail agreed that individuals should have the opportunity to be able purchase annual leave of up to six weeks. The CWU also secured the added benefit that members could pay for the additional annual leave using salary sacrifice and therefore not pay national insurance or tax costs. This had worked well and with no issues regarding the national minimum wage.

However, since 2022 the national minimum wage has increased by 28.5%, from £9.50 to £12.21 per hour and will go up by a further 4.1% in April this year to £12.71. This rise in the minimum wage has led to lots of companies being fined for breaching the minimum wage law as a result of use of salary sacrifice arrangements. This is because the HMRC (who audit companies to see if they are breaching the minimum wage law) only count gross hours pay following deductions by way of salary sacrifice, such as pension contributions, purchase of annual leave or any other My Bundle purchases.

Colleagues will recall that back in March 2025 Royal Mail stepped in and took over all individuals’ payments for POAL and My Bundle. They did this because they had a genuine fear that the HMRC could find them liable for breaching the minimum wage law due to the continued use of salary sacrifice.  This would have resulted in a significant fine and damage to their reputation, at a time when they were calling out other courier companies for using the self-bogus employment model to undercut Royal Mail in the parcels market. At that point Royal Mail had a 7% buffer in operation to determine whether individuals would qualify for salary sacrifice. This buffer is now set at 20% – which I will address later in this communication.

Royal Mail will continue to pay for the cost of both POAL and My Bundle until April and individuals will not have to pay back any monies for the financial year of 2025/2026. This decision was not taken lightly for a couple of reasons; the total cost which has been more than £13 million and the fact that they’re not paying this amount of money to all staff, only those who had voluntarily opted to purchase either annual leave or My Bundle items.

What has the CWU agreed with the business?

First and foremost our priority was to stop Royal Mail from removing the ability for those individuals with less than 20 years’ service to purchase additional annual leave. This would have been the easiest way for the company to mitigate this risk and ensure compliance, but we have worked with the company to ensure this was not the route they have gone down.

Last year over 63,051 employees were written to allowing them to purchase additional leave, with 21,255 individuals choosing to do so. It was therefore essential for us that this remained an option for all individuals, including those with less than 20 years of service.

We have also ensured that salary sacrifice is available for individuals to use subject to the qualifying criteria. Even with the 20% buffer, 3391 individuals will still be able to continue to purchase annual leave via salary sacrifice.

The CWU have also agreed that all individuals who want to purchase annual leave but do not qualify for salary sacrifice can still purchase additional annual leave at the same cost as POAL. The new system is called Additional Leave Unpaid (ALU).

We are in talks with the company to give individuals the opportunity to spread this payment for leave over the course of the year via net pay, in the same way as union deductions and other voluntary payments are paid. There are some legalities with this proposal, but we believe this should be a way to help members spread the cost of the purchase of additional leave. If we achieve this option, then someone on the lowest 0.6% purchase of annual leave will pay less than £1 more per week for the purchase of additional leave and even those who are at the top and paying 3% to purchase annual leave will only pay £3 extra per week.

We have also ensured that there is a mechanism for new entrants to continue to purchase additional annual leave, this was a real problem due to their lower hourly rate. This will kick in from the beginning of the new leave period. Last year over 2000 new entrants purchased additional leave.

There was one issue which was somewhat of a grey area and that was around whether the HMRC would count the functional supplements toward the minimum wage calculation, despite it being a permanent addition to basic pay and that it goes up by the same percentage as a basic pay rise. Having sought advice from our legal advisors and Royal Mail’s, it is thought that the safest method is to run the affordability check solely on base pay.

The CWU are doing two things in this area, the first is we have discussed the possibility of consolidating part of all supplements into basic pensionable pay as part of this year’s pay rise. This is in line with the CWU conference policy of consolidating the minimum supplement that everyone achieves (which is £11.88) into basic pensionable pay. If this was to be achieved, then this would increase all the old contracts by an additional 32p per hour and would allow a significant number of individuals to be able to use salary sacrifice. This would require Royal Mail to fund the additional 13.6% in pension costs if this was to happen.

In addition, we are using our political influence and seeking that the ministers involved advise the HMRC to accept that the permanent functional supplements count towards the minimum wage calculation.

We have had several discussions with Royal Mail concerning the increase they have made to the buffer they have used over the years. The buffer was always 7% (due to pension contributions) and they have moved it to 20% which has meant a significant number of individuals have not qualified for salary sacrifice.

Royal Mail argues the increase in the buffer is needed to mitigate the various challenges with the minimum wage law. These include that the current PSP system is old and does not cater for a blanket case by case management if an individual is potentially in breach of the minimum wage law. This means that they cannot monitor whether in addition to an individual purchasing annual leave, they may also be purchasing several My Bundle items which would bring them below the minimum wage calculation.

Royal Mail specialist lawyers who advise other companies about being within the law have advised them of the following:

• That they do not believe Royal Mail will be classed as salaried under the different categories which are listed by the HMRC.
• That the national minimum wage audit reference period is the same as a worker’s pay frequency i.e. monthly or weekly.
• That minimum wage compliance is calculated based on the average earnings over the reference period divided by the hours worked.

The CWU still believe that the 20% buffer is too high and want this lowered. The 20% buffer means that from April an individual must be earning 20% above the £12.71 minimum wage.  This means after POAL, 6% pension, 1% booster that their gross pay is £15.25 per hour and even if it was reduced to 10% it would need to be £13.98 per hour. Our current national rate without salary sacrifice is £14.21 per hour with a wage rise due in April.

It is important that the union criticises and calls out Royal Mail when they are in the wrong as we have done over their USO model (ODM) and their failure to honour the commitment to equalise new entrants’ pay, terms and conditions.

However, it is also correct to say in this area we have had productive and open discussions with Royal Mail to try and navigate through these issues in a way which is acceptable and continues to allow all members who want to purchase annual leave up to 6 weeks that opportunity.

The CWU lawyers and Royal Mail Lawyers have met to go through the challenges with the minimum wage law and how the HMRC are potentially interpreting it.  Royal Mail’s position is that they will not risk their reputation from any audit and are following their lawyer’s advice.

The important message is that all individuals who want to purchase annual leave should continue to do so, either by way of POAL (Purchase of Annual Leave) or via ALU (Additional Unpaid Leave).  The cost of purchasing leave remains the same.

The CWU remains in discussions with Royal Mail over whether we can get more individuals access to salary sacrifice or whether we can get a weekly payment for ALU which means individuals can spread the payment in a similar way to how POAL is paid.

My message is to encourage those individuals who purchase additional leave to continue to do so, and we will continue to try and improve the repayment plan for this.

Please see attached Annex A which explains in more detail the issues with the minimum wage law.

Any enquiries relating to the content of this LTB should be referred to the DGSP department hford@cwu.org.

Yours sincerely,

Martin Walsh

Deputy General Secretary (Postal)

LTB 49/26 POAL

LTB 49/26 Attachment – Annex A

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CWU BRANCH GUIDANCE ON PICKETING

The purpose of this letter is to introduce and share with you the CWU’s new Branch guidance on picketing, attached below, which has been produced to conform with changes coming in under the Employment Rights Act and changes to the government’s Code on Picketing. 

This reflects the repeal of some of the most draconian anti-union legislation introduced under successive Conservative governments, and the CWU can be extremely proud of the role we have played in securing these important changes through our New Deal for Workers campaign. 

Key points reflected in the CWU Branch guidance on picketing

• The right for employers to impose minimum service levels and issue work notices in six key sectors was repealed in December 2025 (this could have affected CWU members working in 999 call operations).
• From 18^th February 2026, there is no longer a requirement for trade unions to appoint a picket supervisor.
• The repeal of these statutory requirements reduces the legal burden on unions and removes the risk of serious legal consequences for compliance failures.
• The Code on Picketing continues to set out the responsibilities of a ‘picket organiser’ and can be taken into account in court proceedings.
• It is necessary for the CWU to ensure compliance with the new regulations, and we ask that you familiarise yourself with the Code on Picketingwhich has been reproduced in full within the attached guidance document.

The provisions of the Employment Rights Act are being phased in throughout the course of 2026 and 2027.   Several changes are being implemented from 18^th February 2026, including the repeal of the great majority of the Trade Union Act 2016 and with it the removal of the requirement to appoint a picket supervisor and the various administrative duties associated with this role.    

The entirety of the Strikes (Minimum Service Levels Act) 2023 was repealed in December 2025, thereby removing the right for employers to issue work notices relating to minimum service levels during strikes in six key sectors, including emergency services and transport services.  Though the majority of CWU members were not affected by the 2023 Act, the regulations could have allowed BT to issue work notices to CWU members working in BT 999 call operations during periods of strike action, and the rules on transport services could have been expanded in future to cover parcels and postal delivery. 

The government’s Code on Picketing has been revised to bring it into conformity with these changes, and the new Code is due to complete its laying period in parliament on 25^thFebruary 2026.  For the short intervening period between 18^thFebruary and 25^th February, the “old” Code will no longer apply.

As the Branch guidance document notes, the repeal of the statutory requirements relating to picket supervisors and minimum service levels reduces the legal burden on unions and represents a significant step toward returning to the pre-2016 industrial relations framework. 

However, the Code of practice on picketing continues to set out the responsibilities of a ‘picket organiser’ including that they should have a letter of authority from their union which they can show to the police and that they should maintain close contact with the police.  The Code remains admissible in evidence and can be taken into account in the event of proceedings before any court, employment tribunal or Central Arbitration Committee where they consider them relevant.   Therefore, it is necessary for the CWU to ensure compliance with the Code, and as such we ask that you familiarise yourself with the requirements of the Code, which has been reproduced in full within the attached guidance document. 

If you have any questions, please contact the General Secretary’s department at dlynch@cwu.org.

Yours sincerely

Dave Ward                                                   

General Secretary             

LTB 047/26 – CWU BRANCH GUIDANCE ON PICKETING

Att: Branch Coordination Picketing Organisation 2026 Code of Practice on Picketing – Branch Guidance

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TIMETABLE FOR IMPLEMENTATION OF THE EMPLOYMENT RIGHTS ACT

As branches will be aware, the Employment Rights Act received Royal assent on the 18^th Decemberand has now become law. As reported in LTB 276/25, there will be a staggered implementation of different aspects of the legislation.

Attached to this LTB is a timetable for this process which sets out when the provisions of the Act will be introduced. This is based on the government’s timeline^[1] and includes some additional detail in relation to the Certification Officer, political funds, and the simplification of industrial action ballot papers and notices to the employer.

As the timetable shows, many of the new trade union rights will take effect from 18^th February 2026, including:

• Repealing many parts of the restrictive Trade Union Act 2016
• Removal of the 12-week limit on industrial action dismissal protection
• The simplification of industrial action and ballot notices
• Ending the requirement for unions to appoint a picket supervisor
• Removal of the 10-year ballot requirement for trade union political funds 
• New members automatically ‘opted in’ to political fund contributions.

Several further trade union rights are due to be implemented between April and October 2026, including:

• Measures to simplify the trade union recognition process
• Establishment of the Fair Work Agency to enforce employment standards.
• Electronic and workplace balloting for statutory ballots
• New rules on rights for trade unions to access workplaces
• A new duty on employers to inform workers of their right to join a trade union
• Measures governing unfair practices in the trade union recognition process
• New rights and protections for trade union representatives 
• Extending protections against detriments for taking industrial action.

Together with trade union rights, there are also many individual rights being introduced under the Employment Rights Act, including for example:

• Rights to Statutory Sick Pay from day one of sickness and for workers earning below the current Lower Earnings Limit (April 2026)
• Requiring employers to take ‘all reasonable steps’ to prevent sexual harassment of their employees (October 2026)
• Enhanced dismissal protections for pregnant women and new mothers (2027)
• Bereavement leave including pregnancy loss (2027)
• Ending the exploitative use of zero hours contracts (2027)

This legislation represents a substantial improvement in UK employment rights and a major reversal of anti-trade union law that was introduced by successive Conservative governments. It has been hard won by unions after nearly a decade of campaigning and the CWU can be extremely proud of the role we have played in securing these important changes through our New Deal for Workers campaign. 

We will continue to campaign for the swift and effective implementation of the policies set out in this timetable. We will also continue to push for the measures that were part of our New Deal campaign, which are not included in the Act but which the government is considering as part of the Make Work Pay manifesto commitments. This includes taking further action on the gig economy, introducing further sectoral collective bargaining measures, protecting workers from surveillance at work and creating a single status of worker.

We will keep branches updated with the progress of these other initiatives as developments occur.

If you have any questions, please contact the General Secretary’s department at dlynch@cwu.org.

Yours sincerely                              

Dave Ward                                                    

General Secretary

[1] Plan to Make Work Pay and Employment Rights Act: timeline update

Published 3 February 2026 Plan to Make Work Pay and Employment Rights Act: timeline update – GOV.UK

LTB 046/26 – TIMETABLE FOR IMPLEMENTATION OF THE EMPLOYMENT RIGHTS ACT

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UKHSA Burkholderia Stabilis Risk Guidance – Check Your First Aid Kits

Dear Colleagues,

The UKHSA UK Health Security Agency – GOV.UK is investigating an outbreak of Burkholderia Stabilis involving individuals across the UK, linked to wipes. There have been fifty-nine confirmed cases of Burkholderia Stabilis, and one death associated with the infection.

Wipes used in first aid kits should be individually wrapped and sterile, in compliance with British Standard BS8599-1.

There will be a variety of First Aid kits in many workplaces and CWU branches around the UK.

The UKHSA and MHRA Medicines and Healthcare products Regulatory Agency – GOV.UK are urging the public and workplace first aiders to check your first aid kit and ensure you have appropriate sterile products for treating wounds.

The direct public advice is to not use four specified non-sterile alcohol-free wipe products, due to the risk of infection associated with their use. If you have the products listed below, UKHSA advice is not to use them and to dispose of them in your household waste as a precautionary measure given the potential for contamination.

• • ValueAid Alcohol Free Cleansing Wipes
  • Microsafe Moist Wipe Alcohol Free
  • Steroplast Sterowipe Alcohol Free Cleansing Wipes
  • Reli Wipe Alcohol Free Cleansing Wipes

For familiarity purposes, images of the above specified products can be viewed via the link below.

What is Burkholderia stabilis, and why should I check my first aid kit? – UK Health Security Agency

Key messages:

• Do not use non-sterile alcohol-free wipes on broken or damaged skin – these are not suitable for wound care.
• Seek advice and support from trained first aiders for any workplace sustained cuts or wounds.
• Seek medical attention for significant injuries or wounds that show signs of infection.

CWU engagement via local workplace health and safety committees is encouraged wherever possible, with primary focus on First Aid risk assessments and local First Aid risk control for workplaces.

The Health and Safety (First Aid) Regulations 1981 states: “An employer shall provide or ensure that there are provided such equipment and facilities as are adequate and appropriate in the circumstances for enabling first aid to be rendered to his employees if they are injured or become ill at work”.

Regular Checks

Regular checks of First Aid kits are crucial to ensure that the contents are complete, in good condition, and ready for use. It is recommended that a thorough inspection of a workplace First Aid kit is carried out at least monthly

Further HSE guidance on the application of the First Aid at Work Regulations is shared alongside this LTB.

This LTB is shared on behalf of CWU Central Services.

If you have any questions or need any further information, please contact:

Jamie McGovern FRSPH MIIAI 

CWU Health & Safety Policy Assistant at jmcgovern@cwu.org.

LTB 045 2026- UKHSA Burkholderia stabilis risk guidance_

HSE guidance – first aid at work regulations 1981

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ROYAL MAIL PROCESSING ENGINEERING TERRITORIAL REP BALLOT

• Northern Territory

Further to LTB’s  24/06 dated 27^th January 2026, Branches should note that the ballot timetable for the above elections has now been confirmed with the independent scrutineer, and is as follows:

Ballot Papers Despatched:      19^thFebruary 2026

Ballot Closes:                           12^th March 2026 (1^st Post)

Branches should note that the ballot papers will be despatched 2^nd class post and returned to the Independent Scrutineer by 2^nd class post.

The successful candidates will take up position from Monday 16^th March 2026

Any enquiries regarding this letter to Branches should be addressed by email to lparrett@cwu.org.

Yours sincerely,

Martin Walsh
Deputy General Secretary (P)

26LTB044

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PARCELFORCE WORLDWIDE BALLOT TIMETABLES

• Parcelforce Area Health & Safety Representative – South East Region 2026
• Parcelforce Worldwide Area Organiser – Northern Ireland 2026

Further to LTB’s  25/06 & 26/06 dated 27^thJanuary 2026, Branches should note that the ballot timetable for the above elections has now been confirmed with the independent scrutineer, and is as follows:

Ballot Papers Despatched:      19^thFebruary 2026

Ballot Closes:                           12^th March 2026 (1^st Post)

Branches should note that the ballot papers will be despatched 2^nd class post and returned to the Independent Scrutineer by 2^nd class post.

The successful candidates will take up position from Monday 16^th March 2026

Any enquiries regarding this letter to Branches should be addressed by email to lparrett@cwu.org.

Yours sincerely,

Martin Walsh
Deputy General Secretary (P)

26LTB043

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ROYAL MAIL: RAISING CONCERNS AGREEMENT – CASE STATISTICS

Branches will recall that LTB 166/2025 issued on 8^th August 2025 contained the statistics in relation to the six-month review period for Raising Concerns. At that time, the PTCS Department asked for feedback on the application of the Raising Concerns Agreement, and in particular examples of where the process wasn’t being adhered to by managers. This information was required to assist us with further discussions moving forward into the 12-month review of the Agreement.  The PTCS Department received a number of enquiries along with some cases that Branches and Representatives wished for us to review and consequently we undertook this activity and provided feedback where appropriate.

Bobby Weatherall, Acting Assistant Secretary, Alan Tate, PE Member, and Peter Donaghy, Policy Advisor, met with Royal Mail on 19^th November 2025 to discuss the latest statistics (attached). Following this meeting, we shared this information with the Postal Executive and subsequently presented to the Senior Field Officials (SFO) at their meeting in Cardiff on 4^thDecember 2025.

For ease of reference and for the benefit of Branches and members, below is a summarised overview and analysis of the attached statistics:

• 4,866 cases (as at 7^th October 2025) raised since the launch of Raising Concerns
• Cases raised under the previous procedures 23/24 = 2,681. The cases raised under the new procedure for 24/25 = 4,275, which is an increase of 59%
• 67% of the outcomes are informally resolved, upheld or partially upheld
• 578 concerns have been resolved informally, including through mediation
• 1,293 concerns have been taken through the formal process of which 52% have been upheld or partially upheld
• 505 appeals raised since launch. Out of 403 concluded, 28% of appeals are either upheld or partially upheld
• Informal cases – 88% have met the 14-day meeting status. 86.9% completed
• Formal cases – 95.2% have met the 14-day meeting status. 86.9% completed.

All the above statistics apply to UK operations.  There are also statistics for Parcelforce, National Distribution, Fleet Maintenance, PFSL, and Central Functions.

Further to the above, and following feedback from the field, we have made a couple of improvements to the Raising Concerns Agreement and these can be seen in the attached presentation on pages 7, 8 and 9.  These are as follows:

• Firstly, ‘Where a case is raised against a CWU Representative, the case manager must record this in a drop-down box and ticking ‘Yes’ before they can move forward. They must also inform the Divisional Representative of a case involving a CWU Representative’. 
• Secondly, the previous wording in the agreement was, ‘Following the formal investigation, the investigating manager will communicate the outcome to the employee raising the concern and to the employee responding to the concern giving their rationale for the decision. This will be set out clearly in a decision report which includes reference to how the evidence they gathered throughout the investigation supports their decision.’ 

The new wording in the agreement is, ‘Following the formal investigation the investigating manager will communicate the outcome to both the employee who raised the concern and the employee responding to the concern, providing the rationale for the decision. The employee who raised the concern will receive an outcome letter and a decision report outlining the rationale for the outcome. The employee responding to the concern will receive and outcome letter that includes the rationale relevant to their involvement. In both cases, the rationale should reference how the evidence gathered during the investigation supports the decision’.

We are naturally aware and recognise there are frustrations coming from some of our Reps and members whereby they are unhappy with the outcomes of their Raising Concerns case, or the way the manager has dealt with the case. However, these concerns do not indicate there are any underlying problems with the Raising Concerns Agreement itself, and the feedback into the Department is that the process is generally fit for purpose and is in the main working for our members, particularly in comparison to the former arrangements. Crucially, the stats demonstrate that cases are being heard and dealt with in significant numbers and a high number of these cases are completed within the 14-day period. Bobby Weatherall, Postal Executive member, will continue to monitor and review the cases coming into the Department and respond on my behalf.

Lastly, Branches are reminded of the following clause within the Agreement – “Any concerns regarding the interpretation or application of these principles should be referred to the signatories for resolution”. 

 Any enquiries in relation to this LTB should be sent to snicholas@cwu.orgor hmaughan@cwu.org.

Yours sincerely,

Andy Furey

Assistant Secretary

LTB 041/26 – RM Raising Concerns Agreenment – Case Statistics

Att: Appendix to LTB 041 Raising Concerns

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ROYAL MAIL: THE COLLECTIVE PLAN – ANNUAL BENEFIT STATEMENT & ADJUSTMENT LETTERS

Branches and members are advised that the Collective Plan has issued its first Annual Benefit Statement and adjustment letters.  These will be sent via second class post from today, Monday 9^th February to all scheme members who were in the Collective Plan between October 2024 and March 2025.

The Annual Benefit Statement tells Collective Plan members how much they’d built up in the Collective Plan to 31 March 2025, how much they might get from the Collective Plan at age 67, and other information the Collective Plan is legally required to send to members.

The adjustment letters inform members of the outcome of the Collective Plan’s valuations, which determine how much everyone’s income for life and lump sum are adjusted. The results of the valuations are:

• Income for life built up in the period to 31 March 2025 will increase by 6.4%on 31 March 2026
• Lump sum built up in the period to 31 March 2025 will increase by 7.6% on 31 March 2026

Scheme members should remember, everyone’s income for life is adjusted each year by the same percentage, even after you’ve retired, so that the cost of everyone’s income for life stays in balance with the value of the Collective Plan’s assets. This means your income for life can go down as well as up, both before and after you start getting your income for life.

Your lump sum is guaranteed and cannot go down, and each year the Trustee will work out if your lump sum can go up or not, and by how much if it can go up. You will see from above that this year it is going up by 7.6%.

Branches are urged to encourage members to sign up to:

• The MSS website where they can see how much has been built up so far and an indication of what they might receive at age 67 (link – https://www.securermcollectiveplan.com). Members must register for the Collective Plan’s Member Self-Service to access the Annual Benefit Statement and adjustment letter in the future as they will only be provided via the MSS from next year. Details about how to do this are included in the letter from the Collective Plan.
• Details of dependants – it is also vitally important that members provide these details via the MSS website.

Members can also sign up to the following via the Royal Mail People App

• Lump sum booster (a 1% member contribution is matched at 1% by Royal Mail) – Royal Mail – Pensions
• AVCs – If members pay AVCs into the Collective Plan, those payments will build up in a separate pot. And they’ll have different rules about how members can take them. Refer to the AVC Handbook. Royal Mail – Pensions

Conclusion

The Collective Plan has been running since 7^th October 2024 and this is the first annual valuation (which will be repeated every year going forward).  Clearly, this year’s outcome is very healthy and positive for our members.

Lastly, if Branches or members require further information, the attached Q&As will assist.  Members can also use the various QR codes to access the relevant information on the Collective Plan website.

Any enquiries in relation to this LTB should be sent to snicholas@cwu.org or hmaughan@cwu.org

Yours sincerely,

Andy Furey
Assistant Secretary                                  

LTB 039 RM THE COLLECTIVE PLAN – ANNUAL BENEFIT STATEMENT AND ADJUSTMENT LETTERS

LTB 039 Attachment FAQs for Union

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