Reference Periods
Introduction
What follows here is a simplified overview of what reference periods are, we've not gone overboard in our explanation of this section
as in essence there really isn't a need to. Further information pertaining to reference periods, their construction and data collection
can be found within this section via the link entitled Record Keeping.
- What are Reference Periods?
- Workforce Agreement
- Holiday & Sickness Impact
- Changing Employers
- Calculating WTD Data
- Further Reading
What are Reference Periods?
The Government defines a reference period as a 17 (or occasionally 18) week period where a worker's time is calculated and averages a
48 hour week. However, the reference period can be extended to 26 weeks where there is a collective or workforce agreement in place. Rolling
periods or fixed calendar periods can be implemented to suit the needs of individual businesses, however, agreements must be in place
before changes take effect.
Default reference periods will begin at 00.00 on the nearest Monday morning on or after 1 April, 1 August and 1 December each year. Therefore if a company fails to set its reference periods, then the Government's default dates are applicable.
Since the inception of the WTD (April 4th 2005) and based upon the governments defaults, we have calculated the following Reference Period dates for 2012 - 2013 as follows:
- Period 24 commences on Monday 2 April 2012 - 18 weeks
- Period 25 commences on Monday 6 August 2012 - 17 weeks
- Period 26 commences on Monday 3 December 2012 - 17 weeks
- Period 27 commences on Monday 1 April 2013 - 18 weeks
There are several ways to obtain mobile workers data to include within a Reference Period. You can use an external source, such as a Transport Consultancy, a Tachograph Analysis company, or you could contact either the Freight Transport Association (FTA) or the Road Haulage Association (RHA), who both have departments specialising in this aspect of your legal requirements. However, if you are an operator with 20 or less vehicles, you may find it cheaper and easier to calculate your own data, and for those of you who fall into this category, we have created a calculator and a set of master spreadsheet reference periods and some simple instructions to guide you through the process - see the link for Record Keeping.
Workforce Agreement
If your company wants to put in place a set of reference periods that are specific to it's operation, then you are obliged to enter into
a workforce agreement with your staff.
The Department for Transport (DfT) have outlined the structure of how a workforce agreement should be arrived at, as follows:
- an election must be conducted and those voting must be able to do so in secret
- the votes must be fairly and accurately counted
- candidates for election must be relevant members of the workforce or in the case of a group of workers they must be members of the group
- workers must be able to vote for as many candidates as there are representatives to be elected
- the number of representatives to be elected is to be determined by the employer
To be valid, a workforce agreement:
- it must be in writing and have effect for a specific period (not exceeding 5 years)
- have been circulated in draft to all workers to whom it applies together with the guidance to assist their understanding of it
- be signed before it comes into effect either:
- by all the representatives of the members of the workforce or group of workers or;
- if there are 20 workers or fewer employed by a company, either by all representatives of a workforce or by a majority of the workforce
If your company fails to put in place a workforce agreement within a definitive reference period, then the government 17 & 18 week reference periods will apply at all times.
Holiday & Sickness Impact
You should note that any full week(s) of statutory holiday or Sickness taken from January 1st in any year, that fall within
a reference period are to be calculated at 48 hours (9.6 hours per day). However, this only applies to the statutory
entitlement laid down in the directive, which is 4 weeks in both cases
As an example therefore, if a mobile worker is entitled to 5 weeks holiday and takes them as 5 full weeks, and was sick for 2 weeks and 3 days during the year, the calculations for the WTD would be as follows: -
Key Information
- The first 4 full weeks holiday would be calculated as 48 hours per week or 9.6 hours per day in the reference period it fell within
- The final weeks holiday would be calculated as 40 hours or 8 hours per day within the reference period applicable
- The 2 full weeks sickness would be calculated as 48 hours for each week or 9.6 hours per day within the reference period applicable
- The remaining 3 days sickness would be calculated at 8 hours per day within the reference period applicable
Changing Employers
Where a mobile worker ends employment with one employer, who operates road transport services for passengers or the movement of goods,
during a reference period, and commences work for another, all relevant hours worked for the previous employer should be included in the
calculation of working time for the reference period in question. In such instances, employers must ask the new mobile worker in writing
for an account of time spent working elsewhere. The mobile worker must declare this information in writing.
The WTD isn't all about more administrative pain, it can supply you with a great deal of information on costs, and can assist in the decision process if your fleet is engaged in many types of operational activities, being particularly useful where multi-drop activities are concerned.
If you select the link Record Keeping in the WTD section, you'll find a complete guide to capturing the data you require with downloadable reference period spreadsheets and calculators to assist you.
Further Reading
For further information relating to Reference Periods, please use the link below.
