Company Policy Buying Additional Annual Leave

Transcription

1 Cmpany Plicy Buying Additinal Annual Leave

2 Dcument Cntrl Table Dcument title: Buying Additinal Annual Leave Versin number: 2.3 Date apprved: Apprved by: D Wythe Date f last review: Departments / a. ALL departments & cmpanies within the IPRS Grup Persnnel whm this plicy is applicable t: Series in which this plicy is relevant t: a. ALL Series Other IPRS Grup Plicies relevant t this The readers are directed t the fllwing cmpany plicies which are directly related t this plicy (but nt limited t this list): dcument: Annual Leave: Hliday Entitlement and Cnditins Dcument Histry Versin Date Sectin(s) Nte f revisins Authrised by New plicy D Wythe Applicatin windws fr 2016 G Edwards Change t eligibility criteria and new applicatin windw dates G Edwards Plicy reviewed - N changes D Wythe Change t applicatin windw dates D Wythe Page 2 f 9

3 Table f Cntents Intrductin... 4 Prcess Overview... 4 Buying Leave... 5 Eligibility criteria... 5 When can I apply?... 5 Payment fr additinal leave... 5 Calculatin f a days leave... 5 What if I leave the cmpany?... 6 Respnsibilities... 6 Terms and Cnditins f Use... 6 General cnsideratins... 7 Implementatin and review... 7 EXAMPLE Buying Additinal Leave REQUEST FORM... 8 Page 3 f 9

4 Intrductin At IPRS we recgnise the need fr ur staff t achieve a satisfactry wrk - life balance, and we are cmmitted t supprting ur staff in rder t help them achieve a healthy balance between their wrk and persnal lives. This is in the best interests f the IPRS Grup and the well-being f individual staff. This plicy utlines the ptin and prcess fr buying additinal leave and builds n the existing leave prvisins available t emplyees. The purpse f this plicy is t prvide staff with the pprtunity t have additinal flexibility with regards t annual leave entitlement. Buying extra hliday may appeal t staff fr a variety f reasns e.g. the chance t spend mre time with family r g n a special hliday. The pprtunity t buy additinal annual leave cmplements the ther elements ffered within the IPRS Grup such as salary sacrifice fr pensins, childcare vuchers and ther frms f leave such as parental leave. Further infrmatin n these can be accessed via the intranet (cmpany handbk). It is als separate frm ther frms f leave such as unpaid leave, cmpassinate leave and s frth. Prcess Overview Request frm Cmplete the 'Buying Additinal Leave - REQUEST FORM' The request frm can be fund here: Intranet, Dcuments, Cmpany Handbk, Annual Leave, 'Buying Additinal Leave' and 'Request Frm' Send cmpleted frms t hr@iprsgrup.cm Human Resurces HR file a cpy f yur request frm n yur emplyee persnnel file HR prcess the salary deductins fr the apprved requests HR will ntify yu t cnfirm salary deductins at the end f the applicatin windw Yur annual leave allwance is updated t include yur additinal purchased leave and will shw n the intranet annual leave request system - yur purchased leave must be bked and taken as per ur nrmal annual leave prcedure. Nrmal salary will resume frm January Page 4 f 9

5 Buying Leave Members f staff wh satisfy the eligibility criteria can apply t buy additinal annual leave. Yu can purchase a minimum f ne day, up t a maximum f ne wrking week in any ne leave year. This is a pr-rata entitlement. There will be ne applicatin windw within 2018, 2 nd 12 th January The request t buy additinal leave can be made thrugh a Request frm, which is then frwarded t HR via . When a request is agreed, HR will prvide the emplyee with final figures at the end f the applicatin windw. The salary deductins will cmmence January-December. The bught leave is a temprary additin t annual leave entitlement fr the applied year and yur annual leave entitlement n the intranet will shw any additinal purchased leave within 2 weeks after the applicatin windw has clsed. Salary and hliday allwance will revert back t standard the fllwing hliday year. Eligibility criteria This benefit f being able t purchase additinal annual leave applies t IPRS Grup staff members, excluding the fllwing: Emplyees engaged n a fixed-term / temprary cntract fr less than 12 mnths. Emplyees engaged n cntracts that d nt cntain fixed hurs (referred t as zer-hurs r variable hurs cntracts) Emplyees in a prbatinary perid Emplyees wh are n absence mnitring as a cnsequence f hitting a Sickness Absence Trigger, unless therwise justified by Line Managers When can I apply? Staff members will have an pprtunity t apply fr additinal bught leave during the applicatin windw nly. There will be ne applicatin windw within 2018, 2 nd 12 th January All request frms must be received by HR within this perid. The leave may be taken at any time during the rest f the current year (January-December). It des nt have t be taken tgether as a single blck r the dates specified at the pint f the applicatin being made. When the leave is t be taken, it is t be prcessed in the same way as cntractual annual leave via the intranet annual leave request system where yur additinal annual leave will have been added. Nrmal annual leave rules apply. Payment fr additinal leave The additinal day(s) annual leave will be bught by the emplyee thrugh a deductin frm their salary. The additinal leave is exempt frm tax and natinal insurance cntributins as it is deducted frm salary prir t NI & tax deductins being made. The net deductin will hwever be subject t an individual s tax psitin. The deductin frm pay will be made per mnth fr the remainder f the leave year i.e. 12 mnthly deductins frm January t December inclusive. The value f a day s leave is defined in the next sectin belw. Pensin cntributins will remain unchanged as bth the emplyer and emplyee cntributins will cntinue t be made n nrmal pay i.e. prir t the deductin fr bught leave being made. Calculatin f a days leave The calculatin f a days leave will be as shwn in the example belw. IPRS Grup advises that yu calculate the cst implicatins prir t making an applicatin / submitting a Request Frm. Page 5 f 9

6 If yu need any assistance, please speak t the HR team. Additinal annual leave is nt a taxable benefit, s there is n incme tax r natinal insurance (NI) payable n the value f the day(s) bught. This means that the net cst is reduced by up t 33% fr a basic rate tax-payer and 41% fr a higher rate tax payer. Yur salary deductin will be calculated using yur hurly rate. Therefre, if yu wish t purchase 7 hurs additinal hliday, it will cst yu 7 hurs salary and s n. Here is an example salary calculatin: Annual salary = 15,000 Hurs wrked per week = 35 Hurly rate = 15,000 / (52*35) = 8.24 Final salary deductin figures will be cnfirmed by HR nce apprved requests are prcessed. What if I leave the cmpany? Emplyees leaving the cmpany will be reimbursed, if the salary deductins n leaving, amunt t mre than the leave taken. Payments will be recvered prir t leaving if the value f the salary deductins is less than the value f the leave taken. Respnsibilities It is the staff member s respnsibility t: Request leave by the required deadline. T prvide the necessary infrmatin within their applicatin. T mnitr their wn annual leave entitlement including any additinal days purchased. Human Resurces respnsibility t: T cmmunicate this plicy t staff members. T prvide guidance t staff members and Line Managers n the applicatin f this plicy. T mnitr the uptake f this plicy and benefit. Terms and Cnditins f Use buying additinal days annual leave flexible benefit The purchase f additinal annual leave can nly be requested during the designated perid f the year nly Repayment fr the additinal annual leave is deducted mnthly, where the cst f the additinal leave will be split int 12 equal amunts and deducted ver the remaining 12 mnths f the current year (January- December inclusive). The cmpany reserves the right t refuse requests based n business requirement, there is n appeal prcess. Althugh the scheme has been intrduced t give emplyees mre cntrl ver their benefits, nce they have cmmitted t the scheme and submitted their applicatin they cannt change their mind. Additinal leave must be taken by the end f the leave year. It cannt be rlled ver t the next year, if yu fail t take it befre the end f yur hliday perid fr the relevant year, the leave will be lst. There is nt an ptin t sell leave back t the cmpany. If there is an alteratin t an emplyee s hurs partway thrugh the leave year there will be n effect n payments r deductin e.g. if they buy tw days leave and, partway thrugh the year reduce their hurs frm full-time t part-time, they will still be entitled t take tw days f leave. If an emplyee receives a salary increase partway thrugh the leave year any payments r deductins will remain the same as per the time f the applicatin being prcessed. Page 6 f 9

7 If an emplyee is absent frm wrk due t illness when the bught leave is due t be taken then, prviding they meet the requirements f the IPRS Grup s sickness prcedures, they can reclaim the leave. An alternative date t take the leave shuld be investigated as sn as pssible after returning t wrk. If an emplyee ceases emplyment with the IPRS Grup partway thrugh the leave year, their final pay will be adjusted t accunt fr the prprtin f leave they have accrued r taken. IPRS have the right t alter r remve this scheme at any time. Any already purchased annual leave will remain, as per the agreement made at the time f the applicatin being prcessed. If yu need any guidance r have any questins, please cntact the HR team wh are happy t assist. General cnsideratins Once an agreement has been made and the mnthly deductins have cmmenced it becmes a binding agreement between the staff member and IPRS. The staff member cannt nrmally reverse their decisin unless there are exceptinal circumstances. These circumstances are referred t key life changes, which wuld include marriage r divrce, severe illness f either the staff member r a member f their family, having t reduce hurs f wrk r pay, r the ptential jb lss f either the staff member r partner. Where an emplyee leaves part way thrugh the leave year, their annual leave allwance will be calculated n a prrata basis up until their last cmpleted calendar mnth f emplyment, plus any additinal bught leave. Any debit in the amunt f leave taken r balance f mnies t be repaid in respect f days bught will be recvered autmatically frm the emplyee s final pay. Any utstanding leave shuld nrmally be taken in the ntice perid. Any untaken leave will be negtiated and remunerated as apprpriate. Implementatin and review All parties invlved in the peratin f this plicy have the respnsibility fr ensuring that the applicatin f this plicy is in line with the IPRS cntract f emplyment and cmpany handbk. This plicy will be mnitred and reviewed n a regular basis, t ensure that it meets the needs f the IPRS Grup and t ensure cmpliance with the relevant legislatin. This plicy has been Equality Impact Assessed based n cnsultatin and infrmatin available at the time f the plicy being develped. It is recmmended that an equality review f the plicy takes place, and thereafter n an annual basis. This shuld include cnsideratin f any data (qualitative and quantitative) that culd identify any equality related issues that have arisen and require cnsideratin. This plicy may be changed r remved with apprpriate ntice frm the IPRS Grup at any time felt apprpriate any additinal annual leave that has already been purchased, will be allwed accrdingly. Page 7 f 9

8 EXAMPLE Buying Additinal Leave REQUEST FORM Title: Frename(s): Surname: Department: Extensin: Yu may apply fr a number f hurs f additinal annual leave that is equal t a maximum f up t 1 wrking week (prrata t equate t 1 wrking week fr all staff). If apprved, yur annual salary will be reduced by an amunt equivalent t the number f hurs leave being taken. Fr staff wh wrk part-time r are cntracted t wrk mre r less than a standard five day wrking week, the number f hurs will be pr-rated t the equivalent f ne wrking week. Yu can apply frm the 2 nd 13 th January 2018 fr up t ne wrking week s additinal leave (pr-rata) in the remainder f the current leave year (January-December). Number f days / hurs requested I wish t apply fr an additinal day(s) f annual leave in the year 20 This equals t hurs f annual leave. Emplyee s Declaratin I cnfirm that, if apprved, my salary will be reduced by an amunt equivalent t the salary fr the number f hurs additinal leave requested; hurly rate cnsidered t be: Annual salary / (52*35). I agree that this additinal leave will be added t my annual leave and taken in the nrmal way by applicatin via the intranet annual leave request system. The deductin will be made by equal mnthly salary sacrifice payments, either frm January thrugh t December inclusive. In the event that I leave the IPRS Grup, I understand that any utstanding balance will be autmatically recvered / refunded as apprpriate against my final salary. Signed: Date: Apprved frms shuld be sent t Human Resurces Page 8 f 9

9 Belw sectin is fr use by Human Resurces Salary adjustment ntificatin fr additinal annual leave purchase Emplyee Name: Date: Payrll ntificatin Mnthly Salary Adjustment advice fr January December inclusive Please arrange the salary sacrifice adjustments and revert pay back t nrmal frm the next January Hurly rate Additinal hurs hliday purchased Ttal salary deductin ( xx.xx * xx hurs) Mnthly salary deductins: First payment January 2018 Secnd and subsequent payments ending in December 2018 xx.xx Xx hurs xx.xx xx.xx Page 9 f 9