Annual Leave Purchase Scheme 2011/12

Transcription

1 FOR DECISION AGENDA ITEM June 2011 Annual Leave Purchase Scheme 2011/12 Report of Paper prepared by Head of HR Policy and Compliance HR Policy and Compliance Officer Executive Summary The purpose of the Annual Leave Purchase Scheme is to give staff who would like to have additional annual leave entitlement the option to do so in a way that smoothes out the financial consequences of purchasing the leave as an alternative to taking unpaid leave and suffering a significant reduction in salary for the month. The rationale for the Scheme is to allow staff to purchase additional annual leave for a specific purpose and on agreed dates to allow managers to be able to plan for this absence. The Scheme is viewed as an additional flexible working tool which will also have financial benefits to the organisation. The underlying principles of the scheme together with the operating procedure and salary implications are attached as appendices to this paper, along with the application form staff must complete if they want to access this initiative. Annual Leave Purchase Scheme 2011/12 Page 1 of 5 Local Partnership Forum 20 June 2011

2 FOR DECISION Action/Decision required Link to other Board Committee (s) and subcommittees Link to Standards for Health Services in Wales To support the proposed recommendations Workforce Partnership Group, 13 June 2011 Employment Policy Sub Group 16 June 2011 Standard 25 Link to Public Health Agenda Link to UHB Strategic Direction and Corporate Objectives / Legislative and Regulatory Framework The scheme supports the UHB employee engagement and flexible working initiatives, providing greater flexibility for staff within the constraints of service delivery. The UHB will also benefit from reduced staffing costs. Link to relevant evidence base Annual Leave Purchase Scheme 2011/12 Page 2 of 5 Local Partnership Forum 20 June 2011

3 FOR DECISION ANNUAL LEAVE PURCHASE SCHEME 2011/12 INTRODUCTION The Cardiff and Vale University Health Board (UHB) recognises that some employees may wish to take more than their standard contractual annual leave entitlement. The purpose of the Annual Leave Purchase Scheme is to give staff who would like to have additional annual leave entitlement the option to do so in a way that smoothes out the financial consequences of purchasing the leave as an alternative to taking unpaid leave and suffering a significant reduction in salary for the month. THE ANNUAL LEAVE PURCHASE SCHEME The rationale for the Scheme is to allow staff to purchase additional annual leave for a specific purpose and on agreed dates to allow managers to be able to plan for this absence. The Scheme is viewed as an additional flexible working tool which will also have financial benefits to the organisation. The underlying principles of the scheme are set out in Appendix 1, along with details of how the scheme will operate in practice and the resulting salary adjustment. Individuals will be able to apply for whole or ½ days and the maximum amount of additional annual leave that any individual can apply for in 2011/12 is 10 days. Employees who wish to submit a request to purchase additional annual leave must complete the application form attached as Appendix 2. An application will only be approved by a Line Manager on the basis that the Line Manager can demonstrate that there would be no cost in covering the absence of the employee during the period. The UHB reserves the right to refuse an employee s application to purchase additional annual leave on the basis of operational or technical reasons related to their job and service needs. CONCLUSION The Annual Leave Purchase Scheme will enable members of staff to purchase additional annual leave, subject to certain conditions, and at Annual Leave Purchase Scheme 2011/12 Page 3 of 5 Local Partnership Forum 20 June 2011

4 FOR DECISION the discretion of their manager, with the cost of any approved annual leave being deducted from their salary on a monthly basis over 6 months. Whilst this means the employee is available for less work over the year, the Health Board benefits from reduced staffing costs. RECOMMENDATION The Committee is asked to: SUPPORT the implementation of the Annual Leave Purchase Scheme 2011/12 IMPACT ASSESSMENT [Please identify the impact on the following areas and what further action is required as a result of the assessment] Health Improvement Not applicable Workforce Education and Training Financial Legal The scheme supports the UHB employee engagement and flexible working initiatives, providing greater flexibility for staff within the constraints of service delivery Not applicable The UHB will be able to benefit from reduced staffing costs. Not applicable Equality The Scheme is open to all staff, including Medical and Dental staff and the Executive Team, whether they are full-time, part-time, temporary or permanent. The Annual Leave Purchase Scheme will apply Annual Leave Purchase Scheme 2011/12 Page 4 of 5 Local Partnership Forum 20 June 2011

5 FOR DECISION to all employees regardless of age, disability, gender, race, sexual orientation, religion or belief or level in the organisation. Environmental Not applicable RISK ASSESSMENT [Please undertake a risk assessment against the following domains and detail whether the recommendations in the report are designed to address a known risk] Clinical/Service Financial Reputational An application will only be approved on the basis there will be no negative clinical/service impact. Service delivery is an acceptable reason for refusing an application. An application will only be approved on the basis there will be no cost in covering the absence of the employee during the period. Not applicable Acronyms and abbreviations CONSULTATION AND ENGAGEMENT Workforce Partnership Group Employment Policy Sub Group SOURCES OF INFORMATION Annual Leave Purchase Scheme 2011/12 Page 5 of 5 Local Partnership Forum 20 June 2011

6 ENCLOSURE 3.4 APPENDIX 1 Annual Leave Purchase Scheme 2011/12 1. Introduction 1.1 The Cardiff and Vale University Local Health Board (UHB) recognises that some employees may wish to take more than their standard contractual annual leave entitlement. This may be for a variety of reasons including taking an extended holiday or to cater for child care cover during school holidays etc. 1.2 The purpose of the Annual Leave Purchase Scheme is to give staff who would like to have additional annual leave entitlement the option to do so in a way that smoothes out the financial consequences of purchasing the leave as an alternative to taking unpaid leave and suffering a significant reduction in salary for the month. 1.3 Staff will be able to apply to purchase additional annual leave, subject to certain conditions, and at the discretion of their manager, with the cost of any approved annual leave being deducted from their salary on a monthly basis over 6 months. This means that the member of staff receives monthly remuneration that is the same throughout the year. The deductions will be adjusted to take account of any pay uplift such as increments or a change in hours 1.4 In the Annual Leave Purchase Scheme, whilst this means the employee is available for less work over the year, the Health Board benefits from reduced staffing costs. 2. Principles of the Annual Leave Purchase Scheme 2.1 The annual leave year for which this protocol applies to is 1 st April 2011 to 31 st March Individuals will be able to apply for whole or ½ days and the maximum amount of additional annual leave that any individual can apply for in 2011/12 is 10 days. Applications in 2011/12 will need to be made by October 1 st Annual Leave Purchase Scheme 2011/12 Page 1 of 4

7 ENCLOSURE 3.4 APPENDIX An employee who wishes to purchase additional annual leave is required to make a request in writing to their Line Manager using the attached form (Appendix One). 2.4 An application will only be approved by a Line Manager on the basis that the Line Manager can demonstrate that there would be no cost in covering the absence of the employee during the period. 2.5 The UHB reserves the right to refuse an employee s application to purchase additional annual leave. It may be necessary to refuse an employee s request for operational or technical reasons related to their job and service needs. If approval is not given, managers will give written reasons within 10 working days and possibly explore, with the employee, other alternative options that may be available to them. 2.6 Support and advice can be provided to both managers and individual employees via the Health Board s Workforce & OD Department. 2.7 The Health Board s Annual Leave Guidelines will apply to any additional leave being accrued as a result of this scheme and if, having gained additional annual leave, the employee fails to take the leave within the Leave Year, the leave will be lost. 2.8 Employees leaving the organisation will be reimbursed if the salary deductions on leaving amount to more than the leave taken. Likewise, payments will be recovered prior to leaving, if the value of the salary deductions is less than the value of the leave taken. 3. Participation in Leave Purchase Scheme 3.1 The Scheme is open to all staff, including Medical and Dental staff and the Executive Team, whether they are full-time, part-time, temporary or permanent. 3.2 The Annual Leave Purchase Scheme will apply to all employees regardless of age, disability, gender, race, sexual orientation, religion or belief or level in the organisation. 3.3 To qualify to make an application to purchase additional annual leave an employee must have sufficient time remaining to repay the amount owed, for example at least 7 months/30 weeks service remaining on their contract at the time of approval if the employee is to repay over 6 months/26 weeks. This will enable wage/salary deductions to be made. Annual Leave Purchase Scheme 2011/12 Page 2 of 4

8 4. Operation of Scheme ENCLOSURE 3.4 APPENDIX During 2011/12, approved applications must be made by 1 st October 2011 for repayments over 6 th months within the leave year. 4.2 Employees who wish to submit a request to purchase additional annual leave must do so by submitting the application form (Appendix One) completed and signed by the employee and given to their Line Manager for consideration with as much notice as possible. 4.3 Once the request has been received, the Line Manager must consider the application fully and must normally respond within 10 workings days of receipt. The Line Manager must take into account the effect of granting the request on the operational requirements of the service, for example including potential cover available and the consequences of leaving the post uncovered, and holiday plans for other staff. The Line Manager has to demonstrate that the effect of the additional leave being agreed does not lead to additional cost. If the application is refused the reasons for this must be notified to the employee on the Leave Purchase Form. 4.4 Approval of any additional annual leave purchased must be recorded on the employees leave record and the days taken recorded and authorised in the normal way. 4.5 Line Managers are also required to monitor all additional purchased leave and ensure that it is managed properly, given that any leave cannot be carried over into the following year, in accordance with the Health Board s Annual Leave Guidelines. 5. Wage/Salary adjustment 5.1 Employees purchasing additional annual leave will have their salary reduced by the equivalent value of the number of days purchased. 5.2 Where additional annual leave is purchased it is the Line Manager s responsibility to notify payroll and provide signed authorisation/consent from the employee for the salary deduction. A copy of the form (Appendix One) must be forwarded to the Payroll Department in order to ensure that the appropriate and necessary salary adjustment is made. Deduction will commence from the first available pay period following receipt of notification of approval to payroll. 5.3 A record of all applications made, whether approved or declined, will be kept electronically. Annual Leave Purchase Scheme 2011/12 Page 3 of 4

9 ENCLOSURE 3.4 APPENDIX 1 6. Calculations 6.1 The amount of annual leave purchased which will be repaid as a salary deduction over the remaining six months of the leave year. This will be calculated on their hourly rate. 6.2 A tool has been developed for the intranet that will enable staff employed on the Agenda for Change Terms and Conditions of Service to input their pay point and the number of hours additional leave they wish to purchase, this will automatically calculate their hourly rate and the cost of purchasing those days/hours. 6.3 Calculations will also be available to reflect the hours of the Medical and Dental staff and the Executive Team. 6.4 All calculations will be validated by the Payroll Department before any deductions in salary are made. Annual Leave Purchase Scheme 2011/12 Page 4 of 4

10 ENCLOSURE 3.4 APPENDIX 2 Annual Leave Purchase Scheme Rules and Procedures (including approval and request form) 1. Introduction This document details the rules and procedures relating to the Cardiff and Vale University Health Board Leave Purchase Scheme. This scheme will be monitored and reviewed as necessary. 2. Scope This scheme is available to all employees of the Health Board. 3. Scheme Rules The following rules apply to the purchase of annual leave: 3.1 There is a limit of 10 days additional leave that may be purchased. 3.2 Approval of requests will depend upon the needs of the service and will be conditional upon no backfill, temporary or agency cover being required to cover the absence. 3.3 Leave may be purchased in whole or part days. 3.4 Leave once purchased may not be sold back to the Health Board. 3.5 The additional annual leave must be taken within the annual leave year for which it has been purchased. 3.6 A request for additional annual leave must include details of when the leave is to be taken to allow for business planning. 3.7 Payment for leave must normally be made in advance of the leave being taken. This will be through payment over a fixed

11 ENCLOSURE 3.4 APPENDIX 2 period of six months. Payment will be made through a deduction from salary. 3.8 Written consent will be required in advance of the deduction from salary and before the leave is taken. 3.9 Requests must be made to the relevant Line Manager. 4. Deductions from Salary Salary will be reduced by the value of the number of days purchased multiplied by the hourly rate applicable at the time of processing the first salary deduction. Employees will be notified in advance of any changes incurred to the monthly deductions as a result of increments or changes in hours worked. Pension contributions will be unaffected and pensionable service will be deemed to be continuous. 5. Procedure The following procedure will apply to the request and approval for additional annual leave: 5.1 Employees should complete Part 1 of the Request and Approval form attached as Appendix A and forward this to their Line Manager. 5.2 The Line Manager will complete Part 2 of the form indicating whether the additional leave can be supported, taking into account the needs of the service and whether the absence could be tolerated without the need for backfill, temporary or agency cover. 5.3 The Line Manager will forward the form to the relevant Divisional Manager/Divisional Nurse for approval. The Manager/Nurse will complete Part 3 of the form and return it to the Line Manager. 5.4 The Line Manager will notify the employee if the request for additional leave has been approved. 5.5 If the request is rejected the Line Manager will inform the employee of this and ensure that they are aware of the reasons that the application was refused..

12 ENCLOSURE 3.4 APPENDIX If the request is approved the form will be forwarded to Payroll who will process the claim. The Request and Approval form will serve as the express authorisation from the employee to make the necessary deduction from salary. 5.7 Employees will receive confirmation of the total monthly deductions over the chosen payment period before any deductions in salary are made.

13 ENCLOSURE 3.4 APPENDIX 2 Appendix A Annual Leave Purchase Scheme Request and Approval Form Part 1 - Employee Request I have read and understand the rules and procedures of the Leave Purchase Scheme and make the following request to purchase additional annual leave under the terms of that Scheme. Name of employee: Staff number: address: Department: Band: Current hours worked per week: I am applying to purchase (enter number of hours) hours annual leave during the leave year 1 st April 2011 to 31 st March I plan to take this leave as follows: (response is optional) Days/hours Dates Total hours I have requested the additional leave for the following reasons: (response is optional)

14 ENCLOSURE 3.4 APPENDIX 2 I understand that if approved my salary will be reduced by the value of the number of hours purchased by my hourly rate applicable at the time of processing my first salary deduction. I authorise my salary to be reduced in equal instalments over: (tick as appropriate) 6 months / 26 weeks Commencing October 2011 Employee signature: Date: Part 2 - Line Manager Commentary The Line Manager should provide a brief commentary as to how the additional leave requested will impact on the needs of the service during the relevant period and confirm that backfill, temporary or agency cover will not be required to cover the absent worker. Line Manager Signature: Line Manager Title: Date:

15 Part 3 - Divisional Manager/Divisional Nurse Approval ENCLOSURE 3.4 APPENDIX 2 Either: I approve this request for the purchase of additional annual leave and can confirm that backfill, temporary or agency cover will not be required to cover this absence. Divisional Manager/Nurse Signature: Divisional Manager/Nurse Name: Date: OR: I reject this request for the purchase of annual leave on the following grounds: Divisional Manager/Nurse Signature: Divisional Manager/Nurse Title: Date: Notes: Part 1 - to be completed by Employee and forwarded to Line Manager Part 2 - to be completed by Line Manager and forwarded to relevant Divisional Manager/Divisional Nurse Part 3 - to be completed by relevant Divisional Manager/Divisional Nurse and returned to Line Manager Line Manager to confirm outcome to Employee and forward form to Payroll Department