PEOPLE POLICIES CHANGES TO TERMS AND CONDITIONS POLICY

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1 PEOPLE POLICIES CHANGES TO TERMS AND CONDITIONS POLICY Introduction This policy outlines the principles to be applied in situations where employees terms and conditions may change. This can be through harmonisation, re-organisation programmes or other processes such as recruitment, capability or disciplinary. Purpose The intention of this policy is to provide clarity when an employee s terms and conditions change and to ensure that any changes are managed fairly and consistently. Principles The following principles should be adhered to: All employees will be treated fairly, consistently and reasonably Employees should be aware that their terms and conditions may change Employees have a responsibility to ensure they have read any material in relation to changes to their terms and conditions Employees will have the opportunity to raise any concerns with regard to any changes to their terms and conditions The Company reserves the right to vary, withdraw, or implement an alternative approach Only at the discretion of the Group HR Director can exceptions be made to this policy Definitions Harmonised Terms and Conditions Harmonised Terms and Conditions are the standard terms and conditions in operation within the Company at the present time. They apply to the majority of current and new employees and are in relation to an employee s contractual and non-contractual terms and benefits. They also extend to the Company s employment policies and guides. To view the harmonised terms and conditions please click here.

2 Legacy Terms and Conditions Some employees remain wholly or partially on historical terms. These are generally the terms and conditions an employee held with previous companies prior to any significant change programmes such as a TUPE, merger or acquisition. Ring-fencing The term ring-fencing refers to the protection of specific terms and conditions for a set period of time. Generally this occurs when an employee is moving to a role where the entitlements are lower than their current terms and conditions. Any ring-fencing will be agreed with the employee and confirmed in writing. Terms and Conditions Changes Moving to a higher band or transferring to a role of the same band When an employee is appointed into a role within a higher band or sub- band, it will mean additional responsibility and possibly an increase in salary and enhanced benefits. Alternatively, an employee may be appointed to either a different role or a similar role in a different department which is the same band as they are currently on. Confirmation of any change will be provided in writing to the employee, and will outline any revised or new terms and conditions. For the situations outlined above the following terms and conditions will apply: TERMS AND CONDITIONS / BENEFIT Basic Salary Redundancy terms Pension scheme (including Life Assurance) Bonus Private Medical Insurance (if applicable) Car Allowance(if applicable) Salary Range Annual Salary Review Overtime(if applicable) Holiday Entitlement Notice Period APPROACH To be agreed with the employee s new line manager, in line with the salary range applicable to the role. Any salary increase will be effective from the date of appointment. Existing entitlement will be retained entitlement for the band from the date of appointment. To view the harmonised entitlement for each band please click here.

3 All employee policies and guides e.g. maternity, sickness absence and dignity at work policies specified on the Employee Guide on the Intranet. Legacy policies will no longer be applicable. Moving to a lower band general principle In most circumstances where an employee is appointed to a role with a lower band or subband, the move is likely to mean a reduction in responsibility and may also lead to a decrease in salary, and loss of benefits. Confirmation of any change will be provided in writing to the employee, outlining any revised or new terms and conditions. Where an employee moves to a lower role at their own request or as a result of another Company procedure e.g. as part of an outcome in a Capability or Disciplinary process, they will move to the terms and conditions of the new role from the date of appointment. Any enhanced terms and conditions previously received will not be ring-fenced e.g. if an employee moves from a Band 2 to a Band 3, any entitlement to car allowance and enhanced annual leave and AIP benefit will be removed. The appropriate salary and benefits for the Band 3 role will apply from the date of appointment. Moving to a lower band as part of a redundancy situation Suitable Alternative Roles The Company reserves the right to place employees at risk or under notice of redundancy into any suitable alternative role available. A role will be deemed as a suitable alternative if it requires broadly similar skills/knowledge and experience and has broadly similar terms and conditions. (Please note the definition of a suitable alternative role is derived from the current Questions & Answers document provided to any employee placed at risk of redundancy). Where an employee is placed into a suitable alternative role (with no option to take redundancy) on a permanent basis and which carries lower terms and conditions or noncontractual benefits e.g. there may be a sub band change resulting in a lower salary range or a different job family applied, then consideration will be given to ring fencing the existing terms as detailed below: TERMS AND CONDITIONS / BENEFIT Basic Salary APPROACH Where the current salary is higher than the maximum of the new salary range the existing salary will be ring-fenced for 12 months from the date of appointment. After 12 months the salary will be aligned to the appropriate position within the salary

4 Annual Salary Review Redundancy terms Pension scheme (including Life Assurance) Bonus Private Medical Insurance (if applicable) Car Allowance(if applicable) Salary Range Overtime(if applicable) Holiday Entitlement Notice Period All employee policies and guides e.g. maternity, sickness absence and dignity at work range for the new role. Where the ring fenced salary is greater than the maximum of the new salary range no annual salary increase will be applied. Any award made will be in line with the standard principles of Annual Pay Review i.e. the equivalent award will be made as a non-consolidated payment and not added to base salary. Existing entitlement will be retained. Existing entitlement will be ring-fenced for 12 months from date of appointment. The employee will then move to the harmonised entitlement of the new band. To view the harmonised entitlement for each band please click here policies specified on the Employee Guide on the Intranet. Legacy policies will no longer be applicable. Alternative Roles Where an employee at risk or under notice of redundancy is not directly matched to a role, or appointed to a role deemed as a suitable alternative, they are able to apply or have made known to them any alternative work or roles which may be temporary or permanent. The definition of an alternative role is any role which requires substantially different skills/knowledge and experience and / or may therefore be subject to different terms and conditions e.g. a Band change. If successful in securing an alternative role, the employee will move to the terms and conditions of the new role from the date of appointment and the above ring fenced principles will not apply; with the exception of redundancy terms and pension scheme which will remain unchanged. This could be a move up or down as applicable. A trial period will usually be offered in these circumstances. If the alternative role is not made permanent following a trial period, the employee will revert to the terms and conditions of the redundant role. These terms will be used to calculate any severance payment. This approach to an individual s terms and conditions, will also apply if an employee accepts a temporary alternative role or similar short term work, for example a project role, to extend

5 service and allow further opportunity to find a permanent position. In these situations the appropriate terms for this role will be applied for the duration of the work. At the end of the temporary assignment, if no permanent opportunities are identified, the employee will again revert to the terms and conditions of the redundant role for the purpose of any severance calculation. Relocation Relocation occurs when an employee permanently moves to a different geographical work location and may result in a change to the employee s terms and conditions. Confirmation of the relocation will be provided in writing to the employee and will outline any revised or new terms and conditions. Any decisions made regarding relocation will be made in line with the relevant relocation policy. Where relocation takes place, employees will move in line with the terms and conditions specified in this policy and relevant to the band of the role they are relocating into. Career Families and Salary Range Career families and the salary range of a job role are none contractual and the company reserves the right to review these when it is appropriate to do so. A role that is considered to be a direct match or a suitable alternative could potentially be in a different family associated to a different range. Associated documentation: Relocation policy Capability policy Disciplinary policy Recruitment and Selection Policy Redundancy Policies Redundancy Q and A s Benefits matrix Version Control Sheet Version Date Author Comment / reason for change 2 August 2012 A Johnson Policy Review and general update 3 November 2012 A Johnson Updated following feedback 4 July 2013 A Johnson Updated with additional information and link to terms and conditions matrix. 5 September 2013 K Measures Updated following feedback 6 October 2013 K Measures Updated following consultation with Unite 7 June 2015 H W Foster Policy Review career family amendment