General Performance Related Pay Scheme

Transcription

1 General Performance Related Pay Scheme

2 Contents <Title> Introduction 3 Who can participate and potential awards? 4 Scorecards 5 How the scheme works 6 General Performance Related Pay (GPRP) at a glance 7 Receiving General Performance Related Pay (GPRP) 8 Review of overall performance 8 General Performance Related Pay (GPRP) rules

3 Introduction <Title> Our 2017/18 scorecards have changed to bring Network Rail s priorities closer to those of our train operating companies and customers. The business area and national scorecard results are used to set general performance related pay scheme awards (formerly GBS). As the scorecards have changed, performance related payments are also changing. Employees have the opportunity to share in Network Rail s success through the general performance related pay scheme which has been updated this year to reflect the scorecard changes. In many areas, the performance of the route or function will have a greater influence on the overall out-turn, to align general related pay more closely to performance in our devolved organisation. This means higher payments for areas that out-perform the scorecard target. The new general related pay is designed to: Reward employees for achieving national, individual and, where appropriate, business specific and/or functional goals. Link the interests of employees to those of Network Rail as a whole and its stakeholders and customers. Emphasise that safety, train performance and financial performance go hand in hand. Reinforce the company strategy and key goals. Provide an incentive to improve results and reinforce the company s performance culture. 3

4 ? <Title> Who can participate The General Performance Related Pay Scheme is open to employees on a Network Rail contract paid through payroll in the following grade/band: Who is Eligible Role Clarity Band 5-8 Graduates Apprentices Target Performance Award (scorecard targets achieved) Maximum Performance Award All network operations employees including: Signallers Supervisors ECOs Controllers Managed stations employees Maintenance employees unless covered by other performance related pay arrangement 750 1,500 Employees who join under TUPE, unless covered by other performance related pay arrangement Employees can only participate in one performance related payment scheme at a time. 4

5 Scorecards <Title> Train performance and other measures are now set individually for each route. To help us focus on customers needs we are aligning our targets with those of customers, route by route. These changes bring our customers and our passengers ever closer to the heart of how we operate here at Network Rail. To view the scorecards or to find more information, visit Important points: The performance measures on the national scorecard stand alone, and each is calculated independently. No payment will be made in respect of any performance measure below the minimum level of performance. Achievement between the minimum performance level and the target performance level will be calculated on a pro rata basis; as will achievement between the target performance level and the maximum performance level. Evidence of safety under reporting will result in the outcome of the safety measures being reviewed, reducing performance accordingly, potentially to zero. 5

6 How the scheme works Up to 60 per cent of route performance targets are now set locally, linked to customer scorecards and rolling-up into a national scorecard. If the scorecard out-turn result is less than 20%, then no performance related payment will be made. Network Rail is facing an increasingly challenging financial situation and needs to be far more disciplined in how it spends tax payers money. For this reason under-performance against the financial performance measures by the company will reduce the out-turn for everyone on a sliding scale. If our financial performance goes beyond twice the 'worse than target' for both FPM measures added together, then no payment will be made. Business area scorecard* National + scorecard Scorecard Out-turn Maximum performance = x = level 1,500 Performance related pay Business area weighting Weighting Business Area (business area/ national) Routes 60/40 IP 20/80 Corporate Central Functions* 0/100 Route Services 20/80 Digital Railway 20/80 System Operator 20/80 Safety, Technical & Engineering* 0/100 *The national scorecard applies for business areas with no local scorecard. 6

7 General <Title> Performance Related Pay Calendar 1 April 2017 to 31 March 2018 MARCH JUNE/JULY Performance targets for the year are set for each business area by Finance and the business. Performance results finalised at the end of the performance period. Final performance related pay sign off. (See review of overall performance). JULY / AUGUST ONGOING Results are published on Connect. General performance related payments are paid to eligible employees, if applicable. Performance is measured against targets throughout the scheme year. Performance against key business measures are published on connect. Performance results will be finalised at the end of the performance period. 7

8 Receiving <Title> General Performance Related Pay The general performance related payment date will be announced after the end of the financial year (31 March 2018) and once the outcome against performance measures has been finalised. This is usually in June/July to allow for the final out-turn and approval by the Remuneration Committee. Payments will be made in July/August 2018 depending on payroll processing dates. Review of overall performance The Remuneration Committee will review the results of the scorecard at the end of the scheme year and will take into account all factors, including overall business performance and safety. The Remuneration Committee may then reduce/ increase the overall payment to take account of such factors. 8

9 General <Title> Performance Related Pay rules The general performance related pay does not form part of your contractual terms and conditions. Employees will be eligible to receive payment in accordance with the following rules: Category Type Description General Scheme year The scheme year is 1 April March Payment New Joiners, changes to band & part time working Payment date Tax, NI and pensions Eligibility New joiners Changes to band or secondments Part time working Payment date will be announced after 31 March 2018 once the outcome against performance measures has been finalised. Payment to qualifying leavers will be made at the same time as they are made to existing employees. Payments under the scheme are subject to statutory deductions and are not pensionable. Under-performance against the national financial target will reduce the performance related pay amount for everyone, on a sliding scale. If our financial performance goes beyond twice the worse than target, then no performance related payment will be made. Additionally, a scorecard out-turn of less than 20% will result in no performance related payment being made. If you join on or before 28 February 2018 you will qualify for a pro rata payment based on the number of calendar days employed in the scheme year. If you join after 28 February 2018 you will not receive any performance related payment for the 2017/18 scheme year. In the event of moving to (including going on secondment to) a lower or higher band during the scheme year, payment will be pro rated on the basis of calendar days in each respective band. Performance related payments will be calculated on a pro rata basis based on the weekly FTE contractual hours for the role and your number of contractual hours. In the event your hours change during the scheme year, payments will be calculated on a pro rata basis based on the number of calendar days for each set of contractual hours. 9

10 GPRP <Title> rules Category Type Description Absence Individual Performance Leavers Absence from work Performance and disciplinary Industrial action Terminations of employment (e.g. resignations and retirement) Ill health severance and death in service Redundancy If you are absent for 20 or more working days, your participation in the scheme will be maintained, however your payment will be subject to a deduction based on the total number of working days you have been absent for. Working days are calculated on the basis of a standard 5 day working week (dependent on role, this could include rostered weekend working, but not rest days). If you are absent due to maternity, adoption, paternity, parental leave or shared parental leave, the first 20 working days will not form part of the reduction. If you are absent due to jury service, volunteer leave or Territorial Army leave this will not trigger an absence reduction. If you consider that you have a disability that may cause absence from work that should not be considered as part of the general performance related payment deduction please refer to the reasonable adjustment policy. Participants who receive a formal disciplinary warning in the scheme year will not receive a payment. Payments will be made to participants under disciplinary investigation in the scheme year. The underlying principle of the scheme is to reward employees for the achievement of the company s performance targets. As a consequence, if you take part in industrial action during the performance period you will put your eligibility at risk and you may not receive any performance related payment as a result. You are only entitled to payment if you are in Network Rail s employment on 30 June 2018 and have not commenced your contractual notice period before the end of the performance period (31 March 2018). If you have left employment due to ill health or severance you or your nominees will be eligible to receive a payment. Any payment made will be pro rated based on the number of calendar days employed in the scheme year. This also applies in the case of employees who have died in service. If you leave under redundancy or TUPE transferal you are eligible to receive a payment. Any payment made will be pro rated based on the number of calendar days you were employed in the scheme year. The scheme has been prepared so that it complies with Condition 16 of Network Rail s network licence. This document provides the framework and rules for the operation of the Scheme for the financial year