Protection of Pay and Conditions of Service (As a Result of Organisational Change)

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1 Protection of Pay and Conditions of Service (As a Result of Organisational Change) Document Owner ENHCCG Document Author Jenny Holland, Senior HR Advisor Version Directorate Authorised By FINAL Human Resources Executive Team Date of Approval November 2013 Date of Review November 2015 Change History Version Date Name Revision Description 0.1 January 2011 Helen Searle Draft 2 August 2013 Jenny Ambrose PCT-CCG amendments 3 October 2013 Helen Edmondson Review and amend 4 November 2013 Anne Ephgrave Final amendments 5 May 2014 Jennie McCollin Policy template updated HR, QA Page 1 of 10

2 Contents Section No. Section Name Page No. Executive Summary 3 1. Introduction 4 2. General Principles 5 3. Definitions 5 4. Scope 5 5. Short-term Protection of Earnings 6 6. Long-term Protection of Basic Salary 7 7. Conditions 8 8. Protection of Conditions of Service 8 9. Entitlement to opt for Terms and Conditions of the New (or any subsequent) Post Policy Review 8 Appendix 1 Equality Impact Assessment Stage 1 Screening 9 Appendix 2 Privacy Impact Assessment Stage 1 Screening 10 Page 2 of 10

3 Executive Summary NHS East and North Hertfordshire Clinical Commissioning Group (hereafter referred to as the CCG) believes that an integral feature of being successful will depend upon its ability to identify the need for change and to manage that change, taking into account management objectives as well as the aspirations, well-being and employment rights of its staff. In ensuring good management practice the CCG has made arrangements, through this policy, for safeguarding the pay and conditions of service of individual staff adversely affected by organisational change as an alternative to redundancy and early retirement. A review of this policy and procedure has taken place in order to keep pace with present legislation, to reflect NHS Agenda for Change requirements and best employment practice, and to produce a comprehensive policy that is both fair and consistent with other employment policies. The CCG can provide training for all managers and employees involved in implementing and applying this policy and procedure. Page 3 of 10

4 1. Introduction 1.1 NHS East and North Hertfordshire Clinical Commissioning Group (ENH CCG) is committed to being an organisation within which diversity, equality and human rights are valued. We will not discriminate either directly or indirectly and will not tolerate harassment or victimisation in relation to gender, marital status (including civil partnership), gender reassignment, disability, race, age, sexual orientation, religion or belief, trade union membership, status as a fixed-term or part-time worker, socio-economic status and pregnancy or maternity. 1.2 ENH CCG works to a framework for handling personal information in a confidential and secure manner to meet ethical and quality standards. This enables National Health Service organisations in England and individuals working within them to ensure personal information is dealt with legally, securely, effectively and efficiently to deliver the best possible care to patients and clients. 1.3 ENH CCG, via the Information Governance Toolkit, provides the means by which the NHS England can assess compliance with current legislation, Government and National guidance. 1.4 Information Governance covers: Data Protection & IT Security (including smart cards), Human Rights Act, Caldicott Principles, Common Law Duty of Confidentiality, Freedom of Information Regulations and Information Quality Assurance. 2. General Priniciples 2.1 The CCG believes that an integral feature of being successful will depend upon its ability to identify the need for change and to manage that change, taking into account management objectives as well as the aspirations, well-being and employment rights of its staff. 2.2 In ensuring good management practice the CCG has arrangements for safeguarding the pay and conditions of service of individual staff adversely affected by organisational change as an alternative to redundancy and early retirement. 3. Definitions 3.1 Organisational change This means any structural or managerial change in the organisation of services provided by the CCG. 3.2 Basic wage or salary Basic wage or salary is the weekly or monthly sum due in respect of basic hours worked by the individual concerned within the standard working week including any distinction or discretionary awards but excludes any payments made in respect of acting-up or additional Page 4 of 10

5 earnings. Basic salary will be reckoned on the day immediately before the first day of employment in the new post. 3.3 Earnings in the new post This means the sum of the basic wage or salary in the new post and of any remuneration in respect of overtime, shift work and other additional duties. 3.4 Reckonable service This means the total continuous service with any NHS employer. Breaks in service of a 3 months duration or less can be disregarded for the purpose of calculating reckonable service under this policy. Any service which has been the subject of a redundancy payment will be excluded. 3.5 Downgrading This occurs when the new post, irrespective of band or title, carries an hourly rate lower than that of the previous post or a salary scale with a maximum point that is lower than that of the band held in the previous post. 3.6 Marked-time protection This means that the rate of the earnings is preserved without the benefit of any subsequent increments or pay awards, until the new earnings reach the level of the previous earnings or until such time as otherwise agreed. 4. Scope 4.1 These arrangements apply to all employees who, as a consequence of organisational change, are moved by the CCG to a new post or are required to change their patterns of working. This policy does not apply to protection arrangements under Agenda for Change, for which there are separate arrangements for assimilation, and nor does it apply in cases of downgrading following measures relating to competence (these would be addressed under the Capability Policy) or to staff who move to a lower-graded post at their own behest. 4.2 Staff in receipt of protected earnings under this policy will not unreasonably refuse any suitable alternative employment offered. Failure to do so will lead to the loss of the protection arrangement. 4.3 Where posts are moved to a new location base, excess travel costs will be applied as per NHS Terms and Conditions of Service Handbook. 4.4 Where, as a consequence of organisational change, a member of staff is required by the CCG to move to a new post or suffer a reduction in basic hours worked within the standard working week, she/he will receive: Page 5 of 10

6 Short-term protection of earnings, whether or not downgrading is involved (detailed in section 5 of this policy) and/or Full protection of basic salary/wages where downgrading is involved (detailed in section 6 of this policy) 5. Short-term Protection of Earnings 5.1 The following earnings are subject to short-term protection provided they are a regular requirement of the job over at least a continuous six-month period: Overtime Payments for working outside normal hours Payments for providing emergency cover outside normal hours On call payments 5.2 Such earnings must be either a contractual term of an individual s employment or regularly and formally rostered to be included in short term protected earnings. Regular and formally rostered means that it is an agreed working arrangement and that it is formally rostered into an individual s working arrangement. There will be no protection of ad hoc payments. 5.3 Earnings will be protected in accordance with the following table: Continuous NHS Service Period of Protection (Marked time) 1 2 years 4 months 2 3 years 6 months 3 4 years 8 months 4 5 years 10 months 5+ years 12 months 5.4 Protected earnings are calculated as an average of the previous four months basic salary plus those items listed in above i.e overtime etc. 5.5 Earnings in the new post will be offset against protect-able earnings. If for any particular pay period the earnings in the new post exceed the protect-able earnings, protection of earnings is extinguished. 5.6 Short-term protection of earnings will run concurrently with long-term protection of basic salary where downgrading is involved. Page 6 of 10

7 6. Long-term Protection of Basic Salary 6.1 An employee who is downgraded as a result of organisational change is entitled to protection of basic wages or salary (including High Cost Allowance / Fringe Allowance if part of their terms and conditions) including any annual cost of living increases in accordance with the following table. Employees are not eligible for pay protection, however, where the change is of their choice or where they are downgraded for other reasons (for example, as the result of disciplinary action). The period for which pay will be protected is as follows: Continuous NHS Service Protection Period (mark-time) Less than 1 year None 1 to < 2 years 6 months 2 to < 4 years 12 months 4+ years 24 months 6.2 During the defined protection period, the salary will freeze at that point, but the High Cost Allowance will still be added as applicable. No further uplifts will be applied until the pay rate for the job into which the person has been redeployed catches up with their frozen rate of pay or protection ends. This is referred to as marking time. 6.3 NHS pension scheme members may, within one month of the end of the protection period, apply to the Pensions Agency to have their higher rate of pay preserved for the purposes of their future pension calculations. The CCG will normally support such an application, but the final decision will rest with the Pensions Agency. 6.4 Upon immediate expiry of the period of protection, the employee will be paid on the scale applicable to the new post. 6.5 The CCG aims to support staff who find themselves in a long-term protection situation to regain the level at which they had previously been working. As downgrading may reduce the scope for an individual to maintain their skills and knowledge at the level previously acquired it is important that the Manager and individual meet regularly to review and agree the development requirements of the individual and the action s/he is taking to prepare and apply for posts commensurate with the level previously held. 6.6 In such cases reasonable opportunities will be given to provide relevant training in order to enable the employee to progress to a point where protection of pay is no longer required. Page 7 of 10

8 7. Conditions 7.1 Short-term protection of earnings is conditional on the employee undertaking any overtime, shift work or other additional duties which may be required up to the level at which earning in the new post equal to protected earnings. Long and short-term protection of earnings is conditional on the employee accepting any subsequent offer of another suitable post within the CCG which attracts additional earnings at the same level or in excess of those protected. 7.2 Long-term protection of basic wage or salary where downgrading is involved is conditional on the employee accepting a suitable post within the CCG which is more senior when one becomes available. 7.3 Earnings in the new post will be offset against protect-able earnings. If for any particular pay period the earnings in the new post exceed the protect-able earnings, protection of earnings is extinguished and earnings in the new post are paid in full for the particular pay period. 7.4 When calculating earnings in the new post, the rates used for calculating payments in respect of overtime, shift work and other additional duties shall be those applicable to the new post. 7.5 Long-term and short-term protection ceases if the individual voluntarily moves to another post or they retire. 8. Protection of Conditions of Service 8.1 Employees required to move to a new post at a lower grade will retain the following conditions of service appropriate to the former post: Subsistence and excess travel Notice period Annual Leave (with any subsequent improvements within the protection period) 9. Entitlement to opt for Terms and Conditions of the New (or any subsequent) Post 9.1 Employees with an entitlement to long-term protection may at any time opt for the complete package of pay and conditions of service applicable to the new post. This option, once exercised, cannot be cancelled 10. Policy Review 10.1 This policy will be reviewed in line with future changes in legislation and two years after its implementation. Page 8 of 10

9 Appendix 1 Equality Impact Assessment Stage 1 Screening 1. Policy EIA Completion Details Title: Protection of Pay and Conditions of Service Proposed Existing Date of Completion: August 2013 Review Date: August Details of the Policy. Who is likely to be affected by this policy? Employee Patients Public 3. Impact on Groups Race, ethnicity, nationality, language etc. Gender (inc. transgender) Disability, inc. learning difficulties, physical disability, sensory impairment etc. Sexual Orientation Probable impact on group? Positive Adverse None Names & Titles of employee involved in completing the EIA: Jenny Holland, Senior HR Advisor High, Medium or Low Please explain your answers Religion or belief Human Rights Age Other: No impact on any Please explain and provide evidence of the groups above. 4. Which equality legislative Act applies to the policy? Human Rights Act 1998 Sex Discrimination Act Race Relations Act Disability Discrimination Act Gender Recognition Act 2004 Mental Health Act 1983 Equality Act 2006 Mental Capacity Act 2005 Age Equality Regulations 2006 Equal Pay Act Sexual Orientation Regulations 2003 Religion or Belief Regulations 2003 Health & Safety Regulations Part time Employees Regulations Civil Partnership Act How could the identified adverse effects be minimised or eradicated? N/A 6. How is the effect of the policy on different Impact Groups going to be monitored? N/A Page 9 of 10

10 Appendix 2 Privacy Impact Assessment Stage 1 Screening 1. Policy PIA Completion Details Title: Protection of Pay and Conditions of Service Proposed Existing Date of Completion: August 2013 Review Date: August Details of the Policy. Who is likely to be affected by this policy? Employee Patients Public Technology Does the policy apply new or additional information technologies that have the potential for privacy intrusion? (Example: use of smartcards) Identity By adhering to the policy content does it involve the use or re-use of existing identifiers, intrusive identification or authentication? (Example: digital signatures, presentation of identity documents, biometrics etc.) By adhering to the policy content is there a risk of denying anonymity and de-identification or converting previously anonymous or deidentified data into identifiable formats? Multiple Organisations Does the policy affect multiple organisations? (Example: joint working initiatives with other government departments or private sector organisations) Data By adhering to the policy is there likelihood that the data handling processes are changed? (Example: this would include a more intensive processing of data than that which was originally expected) If Yes to any of the above have the risks been assessed, can they be evidenced, has the policy content and its implications been understood and approved by the department? Names & Titles of employee involved in completing the PIA: Jenny Holland, Senior HR Advisor Yes No Please explain your answers Page 10 of 10

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