Human Resources Policy HR09 Pay Protection Policy Apr 2010
Document Management Title of document Type of document Relevant to Pay Protection Policy Policy HR09 All Employees Author Department Directorate Lisa Cessford Human Resources HR Approved by Voice Employee Forum / Executive Management Team Date of approval 26/08/2010 Version Number 3 Review frequency Bi-annually Next review date Apr 2012 Internal distribution Email, Intranet External distribution Availability Shared drive Intranet site (primary care staff) Contact details Address: Human Resources, FCH Tel : 01604 651154 E-mail: @northants.nhs.uk 1
Pay Protection Policy Contents 1. Introduction... 3 2. Scope... 3 3. Definition... 4 4. Voluntary Transfer... 4 5. General Principles... 4 6. Short Term Protection... 4 7. Long Term Protection... 5 8. Other Conditions of Service... 6 9. Protection Period Arrangements Non Pay... 6 10. Personal Development Plans... 7 11. Appeal... 7 12. Equality Impact Assessment... 7 2
1. Introduction This policy needs to be read in conjunction with NHSN s Organisational Change Policy which provides details of how to manage change, including the consultation process. This policy is designed to support successful organisational change in providing suitable alternatives to redundancy, which safeguard pay for a defined period. It contains the details & provisions for an employee accepting redeployment from a higher to lower paid post within NHSN. It provides: Short term protection of earnings, where a move to a lower banded post is not involved. The detriment is incurred through the loss of enhancement or supplements to basic pay or a non voluntary reduction in hours. Longer term protection of basic salary where a move to a lower banded post its involved. The detriment is incurred through a change to basic salary. 2. Scope These arrangements apply to all employees of NHSN who, as a consequence of organisational change, are required by NHSN to: Move to an alternative post where earnings are lower due to either a change of band affecting basic pay, or a loss of enhanced payments, or both; Reduce the contracted hours while continuing in the existing post or band. All reasonable steps will be taken to avoid redundancies, but NHSN recognises that there are circumstances when the NHS and NHSN have to review services, skills or numbers of workforce and as a result of the following may apply: The employee s current post becomes obsolete; The skills required of the post are altered; The staffing requirements for the service to which the employee is employed are reduced. There will be no entitlement to pay protection under this policy where the reduction of band or enhancement is related to: The lack of ability or competence of the employee to perform the duties of their existing band; The employee is redeployed following ill health; The employee, at their own volition, seeks to be redeployed to a lower band; A redundancy payment is made; An acting up or temporary re-grading reaches its agreed end, or finishes early. 3
No payment will be given unless there is an actual reduction in total earnings calculated as an average over a 12 week period prior to the date of change. The procedure does not apply to individuals employed by agencies or other contractors. 3. Definition NHSN Trade Unions NHS Northamptonshire recognised and accredited by NSHN Agenda for Change the NHS Terms & Conditions of Service 4. Voluntary Transfer Staff moving to a post in a lower band at their own initiative shall normally enter the new band on the same pay point, if this is at a point where the pay bands overlap or at the maximum point of the band. 5. General Principles Consultation with the employee(s) and their representatives will take place whenever organisation change is being proposed as in accordance with the NHSN s Organisational Change Policy. Where an employee is redeployed as a result of organisational change to a post in a lower band, the salary on transfer shall be determined by NHSN having regard to all relevant circumstances. All protection arrangements will be based on length of continuous NHS service with NHSN (or predecessor organisation in the case of TUPE), but excludes service which has been the subject of a redundancy payment. Protection of both short term and long term earnings is conditional on the employee moving to, or applying for a suitable post more in keeping with their protected conditions as and when such a suitable post becomes available. 6. Short Term Protection When an employee is required to move to a new post on the same band, and the total earnings in the new post will be less due to a reduction or cessation of enhancements or supplements to basic pay, earnings will be protected for a period of time relating to reckonable service in that band. Protection payment is effective from the date of change. The following enhancements or supplements to basic pay will be taken into consideration in calculating short term protection where they reflect payment for duties which are a regular contractual requirement of the job: 4
Unsocial hours enhancements; Contractual overtime payments; Regular on call payments. Short term protection is conditional on the employee continuing to undertake, if a requirement of the new post, overtime, night duty, unsocial hours etc, up to the level undertaken before the change in terms and conditions. After the end of the protection period any relevant enhancements, allowances or supplements to base salary will be determined by reference to the new post, rather than being carried across from the previous post. The amount of regular earnings will be calculated by taking into account the basic pay and weekly or monthly earnings of additional earnings over a 12 week period immediately prior to the change in terms and conditions taking effect. This calculation will exclude any complete weeks of sickness absence. The arrangements for short term protection are as follows: Length of service in band Less than one year in band at date of change More than one year but less than 5 years in band Service of five years or more in band Protection period 3 months 6 months 12 months 7. Long Term Protection When an employee is required to move to a new post, and the new post is at a lower band and attracts a lower basic annual salary, protection will be of the basic pay or salary without the benefits of any increments, or annual pay awards. In other words, the employee will mark time until new salary catches up or the protection period expires, whichever is the earlier. At that point the member of staff moves to the maximum point of the new scale for the job. Protection may be terminated if the employee unreasonably refuses a subsequent offer of a comparable post at the previous band or a post where the earnings are comparable to the earnings in the previous post. The maximum of three year protection is based on length of service as follows: Length of service in band period Up to one year At least one year but less than two years At least 2 years but less and five years At least 5 years Protection 3 months 6 months 12 months 3 years 5
If a backdated pay award affects the pay protection calculation, the protected pay figures will be recalculated accordingly. At the conclusion of the pay protection period, the employee will receive the correct pay for the post into which they have been redeployed. 8. Other Conditions of Service Following transfer to a new post all other conditions of service, with the exception of the pay protection arrangements, will be those pertaining to the band of the new post. Other conditions of service will be adjusted at the time the change becomes effective. If pay is reduced under the circumstances relating to organisational change or a disability as defined by the Disability Discrimination Act, members of the NHS Pension scheme may have their period of NHS Pension Scheme membership preserved at the higher rate of pay. Contact must be made with the HR Department within one month of pay being reduced to commence this process as this has to be actioned with the Pension Agency within three months of the change. 9. Protection Period Arrangements Non Pay 9.1. Mileage Mileage protection in relation to the additional mileage incurred as a result of a change in main base will fall into two categories: Change of base resulting from amalgamation of NHS Employers or from acceptance of another post in consequence of redundancy (covered by Agenda for Change Terms and Conditions Handbook section 17.27) Change of base as a result of organisational change, service review and reconfigurations, will be reimbursed their daily travelling expenses for a period of one year. The excess shall be calculated on the basis of the bus fares or standard rail travel or if the employee travels by private motor vehicle on the basis of the public mileage rate. 9.2. Temporary Transfer Employees who are required by their employer to carry out temporary duties at a place other than their permanent place of employment, and who travel daily to their temporary base whilst continuing to live near their permanent base, may be reimbursed their excess travelling expenses at public mileage rate for the duration of this temporary working arrangement. 9.3. Lease Car When an employee is required to move to a post with significantly reduced travelling requirements and they currently have a lease car, they 6
will receive protection of the NHSN s contribution to the lease car for the remaining term of the lease only. 10. Personal Development Plans The employee will commit to, and their manager will support, ongoing development in order that the employee will maximise opportunities for redeployment at their former substantive band, either internal or external to the organisation. 11. Appeal If the employee considered they have suffered a detriment as a result of this process, they need to raise their complaint through the NHSN s Grievance procedure. 12. Equality Impact Assessment Department/Team: Human Resources Lead Officer: Lisa Cessford Contact details: 01604 651154 A. Function/Service. Aims/Purpose/objectives. B. Policy, Strategy, Plan and Procedure undergoing the assessment. C. Groups who the function should benefit; - Patients - Staff - Other internal or external stakeholders Policy. The purpose of this policy is to outline the procedures which apply to all staff whose pay, supplements or enhancements are affected as a result of service or organisational change, modernised working methods or any other form of organisational restructuring. The Pay Protection Policy and its associated suite of policies and documents. All Staff. Step 1 Question 1 Who should be served by the policy? Baseline information on the This policy seeks to benefit all staff general population and the groups working for NHS Northamptonshire. the function should benefit, by Ethnicity, Disability, Gender, Age, Sexual Orientation and Religion/Belief e.g.: 7
o Census data (or more up to date population projections) o Other survey data o Information of social and economic factors, such as age, income levels, health etc which are indicators of need. Step 2 Question 2 Do you have monitoring data? o Workforce Date o Audit or review information o Satisfaction survey results o Workforce or service user profile broken down in to: The effectiveness of the policy can be measures in a number of ways including: o Results of staff survey o Number of Employment Tribunals o ER (Grievances) Gender, Race, Disability, Religion, Sexual Orientation, Age Step 3 Question 3 Who is using the function/policy? o What does your monitoring All staff. data on your service users tell you? No evidence available. o Are any groups under or over represented compared to what you would expect to see from the baseline data o What does your monitoring data outcomes tell you? E.g. are some groups more likely to be served better by your function, service and policies etc compared to what you would expect to see from the baseline data on their needs? Step 4 Question 4 What evidence do you have that your service is accessible equitably to all groups taking into account sexual orientation, gender, age, race, religion, belief and disability. o Potential sources of Policy has been approved by staff side evidence: representatives (Voice) and is available o Customer Satisfaction on NHS Northamptonshire intranet and Survey results via the HR Department. o Local and national research o Consultation o Observation o User Groups The policy is available to everyone in scope of Pay Protection as a result of organisational change or any other form of organisational re-structuring. Step 5 Question What action have you taken to ensure that your users are all served 8
o Staff training in how to treat individuals with specific needs o Ensured information is produced in a range of formats o to assist all groups Changes made directly to reflect changes in the user profile. o Users consulted prior to planned changes to the service being implemented o Staff groups made aware of user groups who may be being disadvantaged by existing policy, practice and procedure. o Staff being consulted to assess how new policies and procedures may impact on them equitably? Policy available to all staff via many routes. All staff have access to a line manager for any issues/information required. Monitoring ER activity. Step 6 Question 6 Based on the evidence gathered in Steps 2-5, have you identified any potential differential impact for any of the equality groups (Sexual Orientation, Gender, Race, Religion, and Belief & Disability)? o If yes, go to Step 7 None identified. o If No, go to Step 9 Step 7 Question 7 Is the differential impact as a result of indirect or direct discrimination? If the impact is a result of direct discrimination, this is unlawful and the organisation must decide how to ensure they act lawfully (go to Step 8). N/A If the differential impact is a result of indirect discrimination, is this objectively justified or proportionate in meeting a legitimate aim? If yes, provide details here: If no, go to step 8. Step 8 Consider alternatives (Proposing actions) Information N/A 9
Step 9 Consult on those likely to be affected by the plan. Follow the organisation s consultation process. Step 10 Base your decision on four factors: o The aims of the policy o The evidence you have collected o The results of public involvement and consultations o The relative merits of alternative approaches Actions; Review in 2012 Information The policy has been produced in consultation with Voice employee forum; having previously been accepted by Provider Side of the PCT. Question Decide whether to adopt the plan Make monitoring arrangements Complete EIA Summary Form The author is looking for endorsement from EMT and will be reviewed in 2012 in conjunction with Voice. COLLATE THE ACTIONS IDENTIFIED AND COMPLETE THE EQUALITY IMPACT ASSESSMENT ACTION PLAN BELOW; Issues identified Action required to be taken How will the impact be measured Lead/timescales 10