Pay Policy Statement

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1 Pay Policy Statement /02/2014 People & Organisational Development

2 Current Document Status Version 0.2 Approving body Cornwall Council Date Date of formal approval (if applicable) Target date: 13 February 2014 Responsible officer Kevin Pearce Review date 1 December Location Version History Date Version Author/Editor Comments 22/12/ Draft. Kevin Pearce First draft for consultation. Equality Impact Assessment Record Date Type of assessment conducted Stage/level completed (where applicable) Summary of actions taken decisions made Completed by Impact Assessment review date Various Initial / Full Complete EIAs undertaken previously on individual policies Various Various Corporate Quality Assessment Record Date Insert date Completed by Insert name(s) Document retention Document retention period E.g. 5 years in hard and electronic copies. Cornwall Council Pay Policy 2014/15 2

3 Policy guidance template Introduction 4 Purpose and aim of the policy 4 Scope 4 Policy statement 4 Policy details 4 Consultation and engagement 12 Performance and risk management 12 Communicating the policy 13 Information and training 13 Evaluation and review 13 Appendix 1 - Pay Ranges 14 Cornwall Council Pay Policy 2014/15 3

4 1. Introduction This pay policy statement describes the Council s policies that relate to the pay of its workforce, particularly its senior officers and its lowest paid workers. It was approved by the Council on. 2. Purpose and aim of the policy statement This document fulfils the requirement of the Localism Act 2011 that local authorities prepare and publish a pay policy statement for each financial year. The pay policy statement is intended to provide sufficient information about pay policy to enable local taxpayers to reach an informed view about local decisions on all aspects of remuneration for relevant employees. It also sets the context for the numerical information that is published by the Council under The Code of Recommended Practice for Local Authorities on Data Transparency and by The Accounts and Audit (England) Regulations Policy statement The Council is committed to transparent, fair and equitable pay and reward arrangements that provide value for money and enable the recruitment and retention of employees with the skills and motivation to deliver high quality services for Cornwall and its communities. The policies that support these objectives are summarised in section Scope The pay policy statement describes the pay arrangements that apply to Council s senior and its lowest paid employees. Senior employees are the Council s Chief Executive, Corporate Directors and Heads of Service. The Council s lowest paid employees are those whose terms and conditions of employment are established by the National Joint Council for Local Government Services and amended through local collective agreements from time to time. The Council s lowest paid employees receive a salary equivalent to the minimum of grade B on the Council s pay structure. 5. Policy details The policies set out below apply to the Council s senior officers and its lowest paid employees unless otherwise stated. 5.1 Pay structure The Council s pay structure for the relevant employees consists of 20 grades with salary ranges. Grades are allocated to jobs through a process of job evaluation which establishes the relative value of different jobs. Cornwall Council Pay Policy 2014/15 4

5 In the last year the Council has reduced the salary range for its highest paid officer (the Chief Executive) and increased the minimum salary for its lowest paid employees. Employees are appointed to the minimum of the salary range for the job unless there is a substantial reason for making an exception, for example to secure the appointment of a candidate of the right calibre. Pay increases within the salary range are subject to affordability and an assessment of an employee s contribution. The assessment considers both the employee s achievements and their behaviour. The level at which pay increases for employees who meet the contribution threshold are made is determined by the Council each year in the context of its financial and business plan. Subject to affordability employees who meet the highest contribution thresholds and have reached the maximum salary within the range may be awarded a one off lump sum payment for their contribution in the year in question. In exceptional circumstances, for example for retention reasons, employees may be awarded accelerated salary progression at the discretion of the Council. The Council s Performance, Development and Remuneration Committee is responsible for, amongst other things, determining all matters relating to the remuneration of the Chief Executive and Corporate Directors. Further detail on the responsibilities of the Performance, Development and Remuneration Committee are set out in the Council s Constitution which is available on the Council s web site. Where an employee is promoted or regraded to a higher grade they should receive an immediate pay increase. They will be paid on the minimum of the salary range for higher grade unless this is less than a 2% salary increase in which case they will be paid a 2% salary increase. Exceptions may be agreed by the Chief Executive, Corporate Director or Head of Service, in each case in conjunction with the Head of People and Organisational Development. The value of salaries within the Council s pay structure is influenced by the outcome of national pay bargaining and by periodic reviews which take into account relevant market information. The Council s pay structure creates the foundation for the relationship between the pay of all the roles within the scope of the pay statement and is attached as an appendix to this statement. 5.2 Job evaluation Job evaluation is used to determine the relative value of jobs within the Council. Different elements within each job will accrue a number of job evaluation points. The total number of points accrued will determine the relevant grade and salary range for each job. Cornwall Council Pay Policy 2014/15 5

6 The Council uses the Greater London Provincial Council (GLPC) and Hay Job Evaluation Schemes. Jobs which score 700 or more GLPC points qualify for an evaluation under the Hay Job Evaluation Scheme. 5.3 Market supplements In exceptional circumstances the Council may pay a market supplement in addition to the salary for the job where, in the absence of such a payment, it would not be possible to recruit and retain suitable employees. The value of the market supplement takes into account the labour market pay information for similar jobs. Any market supplements are reviewed on an annual basis and are varied or cease as necessary according to the labour market evidence for the job in question. 5.4 Premium payments The standard working week for employees within the scope of this policy statement is 37 hours, worked from Monday to Friday. For some employees who are required to work outside the normal working week a premium payment may be due. The premium payments which may be payable are set out below Overtime Overtime is time worked beyond the standard working week (37 hours) which attracts additional payment. Overtime is only paid in circumstances where it is not practicable to grant compensatory time off in lieu. All paid overtime is subject to authorisation in advance by the relevant manager. Overtime is paid at plain time with the exception of emergency recall to work after midnight which attracts a 50% plusage. Only employees in receipt of a salary on or below the maximum of grade N are eligible for payment for work beyond 37 hours per week Sunday working as part of the normal working week Sunday working as part of the normal working week attracts a 25% plusage. Only employees paid up to and including grade H or equivalent are eligible for this plusage. Employees contracted to work only at weekends are paid plain time Night work Night work on Monday to Friday as part of the normal working week attracts a 25% plusage. Night work at weekends attracts a 50% plusage. Only employees paid up to and including grade H or equivalent are eligible for this plusage Work on public holidays Cornwall Council Pay Policy 2014/15 6

7 Work on public holidays attracts a 100% plusage. Only employees paid up to and including grade H or equivalent are eligible for this plusage Standby duty Employees who undertake standby duty are required to be available to receive and deal with work related issues for a pre-determined period outside normal working hours. Employees who are on standby duty and are paid on or below the maximum of grade N are eligible for standby payments. Standby payments will be calculated in relation to the midpoint of the salary range for the relevant standby role and according to the rates set out in the table below. Period on standby (outside of normal working hours) Monday to Friday Weekends Bank holidays Payment rate for each hour on standby 14% of standby role hourly rate 17% of standby role hourly rate 20% of standby role hourly rate Call out Call out is the requirement for an employee who is on standby to carry out duties relevant to the standby role during a period of standby duty. It may require the employee to attend their place of work, another location and may include work undertaken from their home. If an employee is called out for less than 15 minutes they will not be paid for call out. However, if an employee is called out on separate occasions within the same shift these can be aggregated to trigger a call out payment, for example if an employee is called out for 10 minutes then returns to standby and is called out for a further 10 minutes they will be entitled to a call out payment in accordance with the following provision. Call out of between 15 and 30 minutes attracts a payment of half an hour. Call out of between 31 minutes and 60 minutes attracts a payment of one hour. Where the duration of call out is more than 1 hour, payment is rounded up to the nearest half hour. Payments for call out will be based on the midpoint of the salary range for the relevant standby role and attract any relevant premium in accordance with the 2011 Local Collective Agreement. Any payments for call out are made in addition to payments for standby. In exceptional circumstances, subject to consultation with the trade unions, the Council may increase standby payments for particular roles if it would otherwise experience problems operating a critical out of hours standby Cornwall Council Pay Policy 2014/15 7

8 rota. Any such arrangements are the subject of an annual review in accordance with the principles of the Council s market supplement policy. In accordance with the Working Time Regulations, managers will adjust normal working arrangements to ensure required rest time is provided as necessary for employees who have been called out. 5.5 Allowances Acting up allowances and honoraria Employees who act up in the absence of more senior employees for a continuous period of at least four weeks are entitled to be paid the salary of the higher graded post (or a proportionate allowance where they are not undertaking the full duties and responsibilities). Once the qualifying period of four weeks has been satisfied, the higher salary is paid with effect from the first day on which the employee took on the duties and responsibilities of the higher graded post. Where the preceding circumstances do not apply, an honorarium may be granted (of an amount dependant on the circumstances) at the Council s discretion, to an employee who performs duties outside the scope of his or her post over an extended period, or where the additional duties and responsibilities are exceptionally onerous Pay protection The Council has a pay protection policy where employment on less favourable terms is offered to an employee as an alternative to redundancy. An employee s basic pay is protected for up to two years if the reduction in their basic pay does not exceed 17.5%. If, by accepting alternative employment, the reduction in an employee s basic pay exceeds 17.5%, pay protection is subject to the Head of People and Organisational Development and the relevant Corporate Director being satisfied that there is some tangible benefit to be gained by the Council, for example in circumstances where pay protection would be less costly than an employee s redundancy. During the pay protection period an employee s basic pay is protected on a mark time basis. Mark time means that during the period of protection, an employee s basic pay is frozen and that any increments and annual pay awards applicable to their previous job are not paid to the employee First aid allowances Employees designated by the Council as recognised first aiders are entitled to a First Aid payment. A payment of per annum is made to fulltime employees designated as recognised first aiders provided that they Cornwall Council Pay Policy 2014/15 8

9 maintain a current First Aid Certificate. In the case of part-time employees, a pro rata payment is made Professional fees The Council pays the professional fees of employees where the Corporate Director or Head of Service determines that membership of a professional body is essential for the continuous professional development of an employee Removal and separation allowances In exceptional circumstances for hard to fill posts the Council may offer removal and separation allowances to new employees taking up employment with the Council. The scheme provides that the Council will contribute to the cost of removal of furniture, the cost of legal and estate agents fees and to the payment of a separation / two homes allowance of up to 75 per week ( 100 during the summer) for up to 52 weeks whilst two homes have to be maintained Work base relocation All employees are required to work at or from any of the Council s premises in Cornwall. However, from time to time because of organisational requirements, employees may have their contracted work-base changed which results in them incurring additional expenditure. Where an employee s contracted work-base is changed by organisational circumstances beyond their control, they are eligible to receive an allowance equal to the difference between the costs of travelling from their home to their new work-base and from their home to their old work-base. Authorised excess travel costs are reimbursed from the date of the work base move for up to 24 months and may include travel by private vehicle or public transport in accordance with the business travel and expenses policy set out below. 5.6 Business travel and expenses Where employees are required to travel in the course of their duties they are expected to determine the most appropriate form of transport taking into account the total cost, travel time and carbon emissions. The cheapest form of transport will normally be chosen unless the travel time is unreasonable. If there are two forms of transport with comparable costs the transport with the lowest carbon emissions must be selected unless the travel time is unreasonable. If public transport is used the cheapest travelling fare should be chosen, for example a monthly or annual season ticket. It is the Council s policy not to pay for first class travel Mileage allowances Cornwall Council Pay Policy 2014/15 9

10 Where, in accordance with the Council s travel policy, employees use their own vehicles for business purposes, the following allowances will apply In each tax year 40p per mile for the first 3000 miles, 20p per mile for each mile thereafter In accordance with the Council s travel policy and to satisfy critical operational needs, the following allowances will apply to roles / positions* designated by the Council In each tax year: 40p per mile up to 3000 miles; 40p per mile for business travel and 20p per mile for relocation travel from 3001 to 10,000 miles; and 20p per mile thereafter These allowances will be reviewed periodically in consultation with the trade unions and such reviews will take account of any changes to the number of roles/positions eligible for each scheme. * The designated roles/ positions will be the subject of consultation with the relevant recognised trade unions The mileage rates applicable to motorcycles and cycles are 24p and 20p respectively. The motorcycle allowance applies where personal motorcycles are used for business purposes irrespective of engine size. The cycle allowance is payable for all business journeys within a three mile radius of the normal place of employment Lease cars Subject to certain conditions employees who travel over 1,000 business miles per annum may apply for a lease car. The Council contributes to the cost of the lease an amount equivalent to the mileage allowances that would otherwise be payable for business travel. The employee is responsible for the remainder of the lease payments Subsistence payments Employees may claim reimbursement of reasonable additional expenditure actually incurred whilst they are away from their normal place of work and unable to follow their usual arrangements. Such claims will normally be paid only in circumstances where employees are required to travel out of Cornwall and incur an overnight stay. Exceptionally, where it is agreed that the out of Cornwall journey will be made in a single day and this involves the working day starting before 8am and finishing after 8pm, claims for reasonable reimbursement for lunch and an evening meal are permitted. Reimbursement of all claims will only be paid on submission of a receipt for the expenditure incurred. Claims may be made up to the following maximum levels Cornwall Council Pay Policy 2014/15 10

11 Breakfast (departure before 7.00am) 6.00 Lunch (departure before 12 noon and return after 2.30pm) 9.05 Evening meal Overnight stay (bed & breakfast) (outside major cities) Overnight stay (bed & breakfast) (major cities except London) Overnight stay (bed & breakfast) (London) In exceptional circumstances, and where authorisation is given to an individual employee by their manager, reasonable additional expenditure supported by a receipt may be payable. The subsistence maximum levels will be reviewed periodically by the Council in consultation with the trade unions. 5.7 Pensions The Council s policy is not to grant augmented benefits under the Local Government Pension Scheme except where it is essential to do so in order to facilitate a tangible and specific organisational benefit. The Council s policy is not to contribute to any Shared Cost Additional Voluntary Contribution scheme. 5.8 Salary and pension payments The Council does not exclude a person in receipt of a pension from another public sector organisation from applying for and being appointed to a job with the Council. The Council s primary concern is to appoint the best person for the job utilising an effective and fair recruitment and selection process. The Council s policy is to disregard any previous public sector retirement income as that is a matter for the relevant public sector pension fund. 5.9 Retirement Early retirement The Council s policy is not to allow employees to retire early with an unreduced pension unless a financial saving can be achieved within a period of no more than two years and there is a benefit to the service. However, from 1 April 2014, under the Local Government Pension Scheme Regulations, employees aged 55 or over have the ability to cease employment and draw reduced pension Flexible retirement Cornwall Council Pay Policy 2014/15 11

12 The Council permits flexible retirement only where there is either a financial or operational benefit to the Council and where the employee s reduced level of earnings together with his or her pension does not exceed his or her pre- retirement earnings. In addition, the Council will not waive any actuarial reduction to an employee s pension benefits and any pension costs to the Council must be recovered within a two year period Redundancy Under the Council s severance policy, the relevant Corporate Director or Head of Service may approve redundancies. In each case this is also subject to the agreement of the Head of People and Organisational Development or Head of Legal, Democratic and Procurement Services being obtained and subject to confirmation from the Head of Finance that costs can be recovered within a two year period. If costs will take longer than two years to recover the approval of both the Leader and Cabinet Member for Resources is also required. The Council exercises discretion under the Local Government (Early Termination of Employment) (Discretionary Compensation) (England and Wales) Regulations 2006, to make compensatory payments to employees being made redundant based on a multiple of 1.75 times the number of weeks to which an employee would be entitled under the statutory redundancy formula, inclusive of any redundancy payment up to a maximum of 52.5 weeks pay. The Council calculates compensation and redundancy payments based on actual salary and continuous local government service. Employees who are members of the Local Government Pension Scheme and who are eligible to be paid a compensation payment as a consequence of their redundancy may ask the Council to convert their total compensation payment into additional pension. 6. Consultation and engagement The recognised trade unions representing the relevant employees within the scope of this pay policy statement have been consulted on the statement. 7. Performance and risk management In accordance with the requirements of the Localism Act this policy will be kept under review and as a minimum will be reviewed and updated on at least an annual basis to ensure an accurate pay policy is published ahead of each financial year. The annual review will be facilitated and coordinated by the People and Organisational Development Service. Cornwall Council Pay Policy 2014/15 12

13 8. Communicating the policy The Council will publish its pay policy statement on its website. 9. Changes to the policy The Council may at any time by resolution of the Council amend this pay policy statement. 10. Information and training Further information relating to this pay policy statement can be obtained from the Head of People and Organisational Development. 11. Evaluation and review The policy will be subject to review by no later than 31/03/2015 Prepared by Kevin Pearce Employment and Reward Strategy Manager People and Organisational Development 17 February 2014 If you would like this information in another format please contact: Cornwall Council County Hall Treyew Road Truro TR1 3AY Telephone: Please consider the environment. Only print this document if it cannot be sent electronically. Cornwall Council Pay Policy 2014/15 13

14 Appendix 1 Cornwall Council Pay Ranges from 1 April 2014 subject to national pay negotiations Grade Salary Ranges pa Minimum Maximum B 12,435 12,915 C 12,588 14,013 D 12,996 14,880 E 13,576 16,215 F 14,880 19,317 G 17,137 21,734 H 19,882 23,945 I 22,290 28,922 J 26,375 33,128 K 30,695 37,578 L 34,975 42,032 M 39,295 47,139 N 43,256 51,961 O 47,210 56,780 P 54,444 66,540 Q 63,180 77,216 R 72,370 88,455 S 81, ,619 CD 110, ,000 (Corporate Director) CE (Chief Executive) 158, ,000 Cornwall Council Pay Policy 2014/15 14

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