NOTTINGHAM UNIVERSITY HOSPITALS NHS TRUST MUTUALLY AGREED RESIGNATION SCHEME Documentation Control
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1 NOTTINGHAM UNIVERSITY HOSPITALS NHS TRUST MUTUALLY AGREED RESIGNATION SCHEME Documentation Control Reference HR/PT&C/027 Approving Body Trust Board Date Approved 25 Implementation Date 25 Summary of Changes from Previous Version New financial Cap for severance packages Supersedes Version 3 Consultation Undertaken Policy Sub Group Directors Group Date of Completion of 4 August 2011 Equality Impact Assessment Date of Completion of We 4 August 2011 Are Here for You Assessment Date of Environmental N/A Impact Assessment (if applicable) Legal and/or Accreditation Implications Target Audience All managers and staff Review Date June 2018 Lead Executive Director of Human Resources Author/Lead Manager Nicky Hill, Director of Human Resources Further Guidance/Information HR Managers Pay Services Managers 1
2 CONTENTS Paragraph Title Page 1. Introduction 3 2. Executive Summary 3 3. Policy Statement 4 4. Definitions (including Glossary as needed) 4 5. Roles and Responsibilities 5 6. Policy and/or Procedural Requirements 5 7. Training, Implementation and Resources Impact Assessments Monitoring Matrix Relevant Legislation, National Guidance 13 and Associated NUH Documents Appendix 1 MARS Payment calculator 15 Appendix 2 Business Case 16 Appendix 3 MARS Application form 17 Appendix 4 Flowchart 19 Appendix 5 Equality Impact Assessment 22 Appendix 6 Environmental Impact Assessment 25 Appendix 7 Here For You Assessment 28 Appendix 8 Certification Of Employee Awareness 29 2
3 1.0 Introduction The Mutually Agreed Resignation Scheme (MARS) is a national scheme which has been developed to help organisations meet the financial challenges including management costs and workforce reductions, service redesign and other efficiency needs. MARS has been designed to support the flexibility of Nottingham University Hospitals NHS Trust (the Trust) to address periods of rapid change and service re-design. MARS is a scheme under which an individual employee, in agreement with the Trust, chooses to leave employment in return for a severance payment. 2.0 Executive Summary 2.1 The MARS has been designed to support the flexibility of the organisation to address periods of rapid change and service redesign. The NHS Terms and Conditions Handbook was amended by Pay Circular (AfC) 3/2010 to incorporate the MARS principles. This addition can be found in Section 20 of the NHS Terms and Conditions Handbook MARS is a scheme under which an individual employee, in agreement with their employer, chooses to leave employment in return for a severance payment. A MARS is not a redundancy or a voluntary redundancy, which would currently be covered by Section 16 of the NHS terms and Conditions of Service Handbook The purpose of the MARS is to create job vacancies which can be filled by redeployment of staff from other jobs or as a suitable alternative for those facing redundancy Any application under MARS must demonstrate that the departure of an employee on voluntary terms would be in the 3
4 financial and operational interests of the Trust. The business case to leave under MARS will need to demonstrate: why the severance payment is in the public interest; why it represents value for money; how it represents the best use of public funds; that it will not affect the organisations financial targets; that it will not affect patient safety; that it will not affect the quality of service provision. 3.0 Policy Statement 3.1 This policy for the management of Mutually Agreed Resignations is in place until further notice to: Create vacancies where there is a need to ensure posts can be filled by redeployment from other jobs which themselves do not need to be replaced. Support change in the interests of the improved efficiency of the service. 4.0 Definitions 4.1 Mutually Agreed Resignation (MARS) is a scheme under which the Trust may offer a financial package to a member of staff to leave their employment on entirely voluntary terms Continuous service means full-time or part-time employment with the present or any previous NHS Employer. If with more than one NHS employer, there must not have been a break of more than a week (measured Sunday to Saturday) between employments. 5.0 Roles and Responsibilities 4
5 5.1 Committees Applications will be submitted to a MARS panel comprising of the Director of Human Resources, plus two additional Directors. The panel will make the final decision on whether to accept or recommend an application. 5.2 Individual Officers The Director of Human Resources is responsible for the implementation of this policy, with support from the Directorate HR Managers, Assistant Directorate HR Managers and HR Officers. 6.0 Policy and/or Procedural Requirements 6.1 POLICY SCOPE Applications for consideration under this policy may only be invited with the authority of the Director of Human Resources. Applications will be invited from identified areas of the workforce, with the approval of the Remuneration Committee, and each applicant will be considered in light of its impact on the Trust s progress towards its requirement to implement service improvement and efficiencies. Such applications will typically be sought on a defined basis that is, by specified department or staff group The Human Resources will notify staff that applications for MARS are being invited and advise them of the timescales for applications to be submitted. The intention to issue an invitation to apply and the nature of the invitation and to whom it is to be issued will be confirmed to the Trust s Staff Side Leads Any application for consideration under this policy must demonstrate that the departure of the member of staff from the Trust 5
6 on voluntary terms would be in the financial interests of the Trust Any scheme run in accordance with this Policy will require approval from the NUH Remuneration Committee and the NHS Trust Development Authority. Certain payments made under this scheme will require the same approval level. Human Resources will be able to provide further advice as required. ELIGIBILITY This scheme is open to all staff except for this listed below Employees who are aged 65 and over are excluded from this scheme. This is because they already have the right to retire and access their NHS pension This scheme is not applicable to employees -: Where they have already indicated/agreed their resignation, end of contract or retirement from a Trust post at the date of the issuing of invitations to apply Who are subject to Stage 1 or Stage 2 of the Capability Policy or who have a current formal warning at the time of application under the Disciplinary Policy (or equivalent policies for Medical Staff) Whose role has been identified as at risk as a result of a Workforce Change Consultation following its presentation to staff. Who has already secured employment with another employer Who have been notified of the date of the termination of their contract of employment by any other reason Who are in shortage or hard to recruit to posts Who are in posts where delivery of service would be put at risk by their departure The Trust reserves the right to determine whether or not an application will be approved and there will be no right of appeal on 6
7 the part of those staff whose applications are not successful. There will be no automatic entitlement to payment under the scheme and each case will be considered on its own individual merits A Mutually Agreed Resignation is viewed as being a voluntary resignation on the part of the individual employee, in return for a severance payment (as set Appendix 1). In considering such a resignation an employee needs to understand the implications for their own circumstances. Some of the implications for employees to consider when resigning would include, for example: o Establishing entitlements to welfare benefits; o The details of their mortgage protection insurance policy o Impact on pension entitlement; o Lease car penalties; Employees are encouraged to seek independent financial advice before making a decision. SCOPE OF PAYMENTS Mutually Agreed Resignation payments will be calculated using only the model included in Appendix The payment will be calculated as above based on basic annual salary (that is at current increment but excluding any unsocial hours allowances, bank holiday payments, overtime pay, clinical excellence awards, additional programmed activity, on call/availability supplements and additional allowances for management, educational or research roles) as at the termination date and will not be adjusted in the light of any back dated pay increase or subsequent pay increases. Current local and national Recruitment and Retention Premia will be included in the calculated payment, where applicable. The payment or deduction of pay relating to the balance of annual leave will be calculated separately6.3.3 There is an annual salary cap of 80,000 which will apply for payments as per the requirement of the Trust Development Authority. For staff with total earnings of 7
8 more than 80,000 (when calculated in accordance with section 6.3.2), the figure used for calculating a MARS payment will be 80, The amount of the payment will be paid as a lump sum effective as at the last agreed date of service. The payment will not include any further notice pay and neither is it pensionable. Successful applicants will be expected to take up their payment as set out in the written offer from the Director of Human Resources Continuous service will be calculated based on the number of completed years service accrued from the employee s NHS start date in accordance with the definition at Part years will not count towards the above entitlements At the time of the issue of this Policy and in accordance with current taxation law, section 403 Income Tax (Earnings and Pensions) Act 2003 the payment will be tax free up to a limit of 30,000. Payments beyond this level will be eligible for deductions of tax and national insurance Members of staff who leave the Trust s employment under this scheme will not be re-employed by the Trust under normal circumstances whether in the same or a different post, until a period of at least five years from their last day of employment with the Trust. Further any member of staff who leaves the Trust under this scheme may not take up employment with another NHS employer (including the Nottingham Treatment Centre) for three months from the last day of their employment with the Trust Members of staff who leave the Trust s employment under this scheme will be asked to sign a Settlement Agreement with the Trust. In signing such an agreement the employee must have access to independent advice regarding the agreement. The Trust will pay up to 400 to support the receipt of this advice. 6.4 Application to run a MAR Scheme Directorates/Departments who wish to run a scheme need to 8
9 submit, via the Director of Human Resources, a business case for consideration by the Trusts Remuneration Committee. The template for completion is outlined at Appendix 2. If approval is gained, further approval will be sought from the NHS Trust Development Authority by the Chief Executive Once approval is gained, paragraph shall apply Staff wishing to apply under this policy should discuss their case with their line manager in the first instance. Informal discussions will be confidential and do not form a binding commitment by either party The individual s line manager will be asked to indicate their support or otherwise for an application by completing the attached form, outlining the potential financial savings and associated timescale, along with reassurance as to how the service and quality needs of the Trust will continue to be met Where an employee holds more than one established post with the Trust they will be required to resign from all posts. This includes any bank/ad hoc work (including work via NHS professionals for this Trust). The payment entitlement will be calculated as per Appendix 1 based on the salary for all posts held with the Trust Members of staff should then submit their application by the notified closing date, using the application proforma in Appendix 3. This must be submitted to the Director of Human Resources who will arrange for receipt of their application to be acknowledged within 5 working days, the information submitted to be verified and the potential payment to be calculated Once an application is submitted, it will be dealt with in strict confidence by all those involved with the process Applications will be submitted to a Special Panel comprising of the Director of Human Resources, plus two additional Directors. The panel will make the final decision on whether to accept or 9
10 recommend an application. For certain MARS payments, the Trust will need to seek the approval of the NHS Trust Development Authority before the Trust can approve Once approval has been obtained the Director of Human Resources will write to the member of staff confirming that their application has been approved, confirming the details of the payment, proposing a leaving date and requesting acceptance or rejection of the offer within five working days of the receipt of the letter. A non-response will be taken as a rejection of the offer unless the requirement for an extension has previously requested and agreed Where the MARS panel does not approve an application, the Director of Human Resources will write to the member of staff advising that their application has not been successful and why it has not been possible to approve the application at this time This process is summarised at Appendix Training and Implementation 7.1 Training Whilst this policy does not require any formal training or education. Directorate HR Managers, Assistant Directorate HR Managers and HR Officers should communicate the content of this policy to Trust managers, who should then communicate appropriately with their members of staff. Communication of the policy will be linked to the timescales for requesting applications. 10
11 7.2 Implementation The Director of Human Resources is responsible for the implementation of this policy, with support from the Directorate HR Managers, Assistant Directorate HR Managers and HR Officers Whilst this policy does not require any formal training or education. Directorate HR Managers, Assistant Directorate HR Managers and HR Officers should communicate the content of this policy to Trust managers, who should then communicate appropriately with their members of staff. Communication of the policy will be linked to the timescales for requesting applications. 7.3 Resources Application of this policy will be in line with the existing resources of the HR Department 8.0 Trust Impact Assessments 8.1 Equality Impact Assessment NUH is committed to ensuring that none of its policies, procedures, services, projects or functions discriminate unlawfully. In order to ensure this commitment all policies, procedures, services, projects or functions will undergo an Equality Impact Assessment A copy of the Equality Impact Assessment for this policy can be found in Appendix Reviews of Equality Impact Assessments will be conducted in 11
12 line with the review of the policy, procedure, service, project or function 8.2 Environmental Impact Assessment The environmental impact of this policy has been considered and no further action is required at this time. 8.3 Here For You Assessment This Trust is committed to providing the highest quality of care to our patients, so we can pledge to them that we are here for you. This Trust supports a patient centred culture of continuous improvement delivered by our staff. The Trust established the Values and Behaviours programme to enable Nottingham University Hospitals to continue to improve patient safety, outcomes and experiences. The set of twelve agreed values and behaviours explicitly describe to employees the required way of working and behaving, both to patients and each other, which would enable patients to have clear expectations as to their experience of our services. 12
13 9.0 Policy / Procedure Monitoring Matrix Minimum requirement to be monitored Responsible individual/ group/ committee Process for monitoring e.g. audit Frequency of monitoring Responsible individual/ group/ committee for review of results Responsible individual/ group/ committee for development of action plan Responsible individual/ group/ committee for monitoring of action plan No of applications and outcome Review panel Audit of applications Per scheme Director of Human Resources Director of Human Resources Director of Human Resources 13
14 10.0 Relevant Legislation, National Guidance and Associated NUH Documents 10.1 All trust polices and trust wide procedures must comply with the relevant legislation (non exhaustive list) where applicable: Equality Act 2010 Employment Relations Act (1999) Rehabilitation of Offenders Act (1974) Human Rights Act (1998) Trade Union and Labour Relations (Consolidation) Act 1999 Part Time Workers - Prevention of Less Favourable Treatment Regulations (2000) Fixed Term Employees - Prevention of Less Favourable Treatment Regulations (2001) 14
15 Appendix 1 CALCULATION FOR PAYMENT subject to 80,000 annual salary cap Length of Continuous NHS Service Scale of Payment 1 year continuous service 1 month s basic salary 2 years continuous service 2 month s basic salary 3 years continuous service 2 month s basic salary 4 years continuous service 2 month s basic salary 5 years continuous service 3 month s basic salary 6 years continuous service 3 month s basic salary 7 years continuous service 3 month s basic salary 8 years continuous service 4 month s basic salary 9 years continuous service 4 month s basic salary 10 years continuous service 5 month s basic salary 11 years continuous service 5 month s basic salary 12 years continuous service 6 month s basic salary 13 years continuous service 6 month s basic salary 14 years continuous service 7 month s basic salary 15 years continuous service 7 month s basic salary 16 years continuous service 8 month s basic salary 17 years continuous service 8 month s basic salary 18 years continuous service 9 month s basic salary 19 years continuous service 9 month s basic salary 20 years continuous service 10 month s basic salary 21 years continuous service 10 month s basic salary 22 years continuous service 11 month s basic salary 23 years continuous service 11 month s basic salary 24 and over years continuous service 12 month s basic salary 15
16 Appendix 2 Business case to run a MARS (For submission to Remuneration Committee) Name of Department The reason for running the MARS The estimated cost savings from running the scheme Confirmation that the scheme is affordable and will not impact on reaching planned financial position Time scale for running the scheme including closing date for applications latest termination date confirmation that there is no timescale overlap with a redundancy consultation Confirmation that no-one will be allowed to leave that potentially puts the service at any risk Confirmation there are no staff leaving under the scheme who should otherwise be managed under the organisation s performance/capability procedures Confirmation that EQIA on the scheme and appropriate monitoring will be undertaken Confirmation that the roles vacated will create job vacancies which can be filled by redeployment of staff from other jobs or as a suitable alternative for staff facing redundancy Confirmation that audit scrutiny of applications will take place either pre or post payment Confirmation that staff leaving will be covered by a compromise agreement that will include clawback and an express clause stating that the individual has not prejudiced any of their rights under PIDA Signed: Name:.. Date:.. 16
17 Appendix 3 MUTUALLY AGREED RESIGNATION SCHEME APPLICATION FORM For Completion by Employee Directorate/dept: Full Name: Job title: Date of Birth: Pay Band/Grade: NI Number: Assignment No:- (from payslip) Gross Annual Salary (before deductions): NHS continuous employment start date: Preferred Contact Details: Phone: Address: I wish to apply for the Mutually Agreed Resignation Scheme. I understand that the information above will be validated and the outcome of my application will be communicated to me in writing. Signed: Date To be completed by the line manager/hr Department Details required of how recurrent cost savings can be made through skill mix/redeployment: 1. Why is the employee being considered for voluntary severance? 2. Savings to be delivered as a result of agreeing a MARS payment (recurrent and nonrecurrent). How does this represent value for money and the best use of public funds? 3. Voluntary severance costs 4. Does this application create job vacancies which can be filled by redeployment of staff from other jobs or as a suitable alternative for staff facing redundancy 17
18 I do/do* not support this application (*Delete as appropriate) Signed: Reason: Line Manager Date: PLEASE FORWARD ALL COMPLETED FORMS TO THE DIRECTOR OF HUMAN RESOURCES Authorisation from HR Director This application has/has not been approved by the MARs panel (delete as applicable) This application has / has not been approved by the Remuneration Committee (delete as applicable) Signed: Date: For Completion by HR/Payroll Team Basic Annual Salary: Organisation Start Date: MARS Payment Calculation: Leaving Date: Completed Years: Completed by: Date 18
19 Appendix 4 Flowchart Business Case submitted to Remuneration Committee via Director of Human Resources Scheme approved Scheme rejected Scheme sent to NHSTDA via CEO for approval Feedback via Director of Human Resources Scheme approved Scheme rejected Feedback via Director of Human Resources Staff Side informed and applications invited from designated group. Line manager s support should be sought Review panel arranged Applications received and reviewed via panel Application approved Application rejected For certain payments, approval must be sought from NHSTDA before final confirmation Settlement agreement developed and signed Payment made and termination date agreed 19
20 20
21 Insert templates of relevant impact assessments (page break after each) APPENDIX 5 Equality Impact Assessment (EQIA) Form (Please complete all sections) Q1. Date of Assessment: Q2. For the policy and its implementation answer the questions a c below against each characteristic (if relevant consider breaking the policy or implementation down into areas) Protected Characteristic a) Using data and supporting information, what issues, needs or barriers could the protected characteristic groups experience? i.e. are there any known health inequality or access issues to consider? The area of policy or its implementation being assessed: b) What is already in place in the policy or its implementation to address any inequalities or barriers to access including under representation at clinics, screening Race and policy applies equally to all none Ethnicity Gender policy applies equally to all none Age policy applies equally to all none Religion policy applies equally to all none Disability policy applies equally to all none c) Please state any barriers that still need to be addressed and any proposed actions to eliminate inequality 21
22 Sexuality policy applies equally to all none Pregnancy and policy applies equally to all none Maternity Gender policy applies equally to all none Reassignment Marriage and policy applies equally to all none Civil Partnership Socio-Economic policy applies equally to all none Factors (i.e. living in a poorer neighbour hood / social deprivation) Area of service/strategy/function Q3. What consultation with protected characteristic groups inc. patient groups have you carried out? None specifically Q4. What data or information did you use in support of this EQIA? Eligibility criteria Q.5 As far as you are aware are there any Human Rights issues be taken into account such as arising from surveys, questionnaires, comments, concerns, complaints or compliments? Yes Q.6 What future actions needed to be undertaken to meet the needs and overcome barriers of the groups identified or to create confidence that the policy and its implementation is not discriminating against any groups 22
23 What By Whom By When Resources required Q7. Review date 23
24 Environmental Impact Assessment Appendix 6 The purpose of an environmental impact assessment is to identify the environmental impact of policies, assess the significance of the consequences and, if required, reduce and mitigate the effect by either, a) amend the policy b) implement mitigating actions. Area of impact Environmental Risk/Impacts to consider Action Taken (where necessary) Waste and materials Soil/Land Water Air Is the policy encouraging using more materials/supplies? Is the policy likely to increase the waste produced? Does the policy fail to utilise opportunities for introduction/replacement of materials that can be recycled? Is the policy likely to promote the use of substances dangerous to the land if released (e.g. lubricants, liquid chemicals) Does the policy fail to consider the need to provide adequate containment for these substances? (e.g. bunded containers, etc.) Is the policy likely to result in an increase of water usage? (estimate quantities) Is the policy likely to result in water being polluted? (e.g. dangerous chemicals being introduced in the water) Does the policy fail to include a mitigating procedure? (e.g. modify procedure to prevent water from being polluted; polluted water containment for adequate disposal) Is the policy likely to result in the introduction of procedures and equipment with resulting emissions to air? (e.g. use of a furnaces; combustion of fuels, emission or particles to the n/a n/a n/a n/a 24
25 Energy Nuisances atmosphere, etc.) Does the policy fail to include a procedure to mitigate the effects? Does the policy fail to require compliance with the limits of emission imposed by the relevant regulations? Does the policy result in an increase in energy consumption levels in the Trust? (estimate quantities) Would the policy result in the creation of nuisances such as noise or odour (for staff, patients, visitors, neighbours and other relevant stakeholders)? n/a n/a 25
26 Appendix 7 We Are Here For You Policy and Trust-wide Procedure Compliance Toolkit The We Are Here For You service standards have been developed together with more than 1,000 staff and patients. They can help us to be more consistent in what we do and say to help people to feel cared for, safe and confident in their treatment. The standards apply to how we behave not only with patients and visitors, but with all of our colleagues too. They apply to all of us, every day, in everything that we do. Therefore, their inclusion in Policies and Trust-wide Procedures is essential to embed them in our organization. Please rate each value from 1 3 (1 being not at all, 2 being affected and 3 being very affected) Value Score (1-3) 1. Polite and Respectful 1 Whatever our role we are polite, welcoming and positive in the face of adversity, and are always respectful of people s individuality, privacy and dignity. 2. Communicate and Listen 1 We take the time to listen, asking open questions, to hear what people say; and keep people informed of what s happening; providing smooth handovers. 3. Helpful and Kind 1 All of us keep our eyes open for (and don t avoid ) people who need help; we take ownership of delivering the help and can be relied on. 4. Vigilant (patients are safe) 1 Every one of us is vigilant across all aspects of safety, practices hand hygiene & demonstrates attention to detail for a clean and tidy environment everywhere. 26
27 5. On Stage (patients feel safe) 1 We imagine anywhere that patients could see or hear us as a stage. Whenever we are on stage we look and behave professionally, acting as an ambassador for the Trust, so patients, families and carers feel safe, and are never unduly worried. 6. Speak Up (patients stay safe) 1 We are confident to speak up if colleagues don t meet these standards, we are appreciative when they do, and are open to positive challenge by colleagues 7. Informative 1 We involve people as partners in their own care, helping them to be clear about their condition, choices, care plan and how they might feel. We answer their questions without jargon. We do the same when delivering services to colleagues. 8. Timely 1 We appreciate that other people s time is valuable, and offer a responsive service, to keep waiting to a minimum, with convenient appointments, helping patients get better quicker and spend only appropriate time in hospital. 9. Compassionate 1 We understand the important role that patients and family s feelings play in helping them feel better. We are considerate of patients pain, and compassionate, gentle and reassuring with patients and colleagues. 10. Accountable 1 Take responsibility for our own actions and results 11. Best Use of Time and Resources 3 Simplify processes and eliminate waste, while improving quality 12. Improve 1 Our best gets better. Working in teams to innovate and to solve patient frustrations TOTAL 14 27
28 APPENDIX 8 CERTIFICATION OF EMPLOYEE AWARENESS Document Title Mutually Agreed Resignation Policy Version (number) 4 Version (date) 25 I hereby certify that I have: Identified (by reference to the document control sheet of the above policy/ procedure) the staff groups within my area of responsibility to whom this policy / procedure applies. Made arrangements to ensure that such members of staff have the opportunity to be aware of the existence of this document and have the means to access, read and understand it. Signature Print name Date Directorate/ Department The manager completing this certification should retain it for audit and/or other purposes for a period of six years (even if subsequent versions of the document are implemented). The suggested level of certification is; Clinical directorates - general manager Non clinical directorates - deputy director or equivalent. The manager may, at their discretion, also require that subordinate levels of their directorate / department utilize this form in a similar way, but this would always be an additional (not replacement) action. 28
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