PROTECTION OF PAY AND CONDITIONS OF SERVICE
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1 Protection of Pay & Conditions of Service SECTION: HUMAN RESOURCES POLICY AND PROCEDURE: NATURE AND SCOPE: POLICY AND PROCEDURE TRUST WIDE SUBJECT: PROTECTION OF PAY AND CONDITIONS OF SERVICE This policy details Nottinghamshire Healthcare NHS Trust s arrangements for safeguarding the pay and conditions of service of individual employees adversely affected by organisational change as an alternative to redundancy and early retirement. DATE OF LATEST RATIFICATION: MARCH 2011 (REISSUED SEPTEMBER 2014) RATIFIED BY: HR CORE GROUP IMPLEMENTATION DATE: MARCH 2011 REVIEW DATE: DECEMBER 2012 ASSOCIATED TRUST POLICIES AND PROCEDURES: NONE ISSUE 3 MARCH 2011
2 NOTTINGHAMSHIRE HEALTHCARE NHS TRUST Protection of Pay & Conditions of Service PROTECTION OF PAY AND CONDITIONS OF SERVICE POLICY CONTENTS 1.0 Policy Statement 2.0 General Principles 3.0 Single Equality Scheme 4.0 Scope of Provisions 5.0 Definitions 5.1 Reckonable Service 5.2 Re-appointment of previous NHS employees 6.0 Roles and Responsibilities 7.0 Transfer to the Lower Band 8.0 Basic Pay Protection 8.1 Protection on movement to a new post resulting in downgrading as a consequence of organisational change 8.2 Protection on the movement to a new post on the same grade but with reduction in earnings as a consequence of organisational change 9.0 Enhancement in the new role 10.0 Protection of Notice Period 11.0 When Protection will Cease 12.0 Flexibility 13.0 Dissatisfaction with the application of this Policy 14.0 Target Audience 15.0 Review Date 16.0 Consultation 17.0 Legislation Compliance 18.0 Monitoring Compliance 19.0 Equality Impact Assessment 20.0 Champion and Expert Writer Appendix 1 Record of Changes Appendix 2 Employee Record of Having Read the Policy ISSUE 3 MARCH
3 1.0 POLICY STATEMENT NOTTINGHAMSHIRE HEALTHCARE NHS TRUST Protection of Pay & Conditions of Service PROTECTION OF PAY AND CONDITIONS OF SERVICE POLICY 1.1 The Nottinghamshire Healthcare NHS Trust (the Trust) believes that an integral feature of being successful is the ability to identify the need for change and to manage that change, taking into account management objectives as well as the aspirations and well being of its employees. 1.2 In ensuring good management practice the Trust, in consultation with staff representatives, has agreed the following arrangements for safeguarding the pay and conditions of service of individual employees adversely affected by organisational change as an alternative to redundancy and early retirement. 2.0 GENERAL PRINCIPLES 2.1. Any employee who, from the 1 April 2001, is on protected conditions under the provisions of the General Whitley Council agreement (Section 47) or functional council agreements shall continue to be protected under these provisions until the protection expires, otherwise the following arrangements will apply to all employees of the Trust Where a protection arrangement applies it is conditional that the employee gives an undertaking to consider any suitable alternative post that arises. Failure to accept an offer of suitable alternative employment may lead to the loss of any protection arrangement. 2.3 Protection payments in respect of this agreement are subject to protectable earnings. Earnings in the new post will be offset against protectable earnings. If for any particular pay period the total earnings in the new post exceed the protectable earnings, protection of earnings ceases for that period. 3.0 SINGLE EQUALITY SCHEME 3.1 In applying this procedure, managers, employees and their representatives will have regard to the principles and requirements of the Trust s Single Equality Scheme. The Trust is committed to equality, diversity and human rights accordingly the implementation of this policy and its impact will be monitored across all equality strands and reported regularly to the Trust Board. 3.2 Managers will not discriminate in the application of this policy and procedure in respect of age, disability, race, ethnic or national origin, gender, religion, beliefs, sexual orientation, marital/partnership status, social and employment status, gender identification, language or trade union membership or mental health status. 4.0 SCOPE OF PROVISIONS 4.1 These provisions apply to: Any employee who, as a consequence of organisational change, is required by management to move to a new post which results in a reduction in the employee's basic wage/salary/hours Any employee who, as a result of unsuitability in current post who subsequently accepts appointment to a lower graded post attracting lower wage/salary/hours ISSUE 3 MARCH
4 5.0 DEFINITIONS 5.1 Reckonable Service Protection of Pay & Conditions of Service (except where unsuitability is the subject of disciplinary, capability, conduct or personal preference which will be exempt from this policy) An employee s continuous previous service with any NHS employer counts as reckonable service in respect of NHS agreements on redundancy, maternity, sick pay and annual leave Employers have discretion to take into account any period or periods of employment with employers outside the NHS, where these are judged to be relevant to NHS employment When employees who have been transferred out of NHS employment to a non-nhs provider return to NHS employment, their continuous service with a new non-nhs employer providing NHS funded services, will be counted as reckonable in respect of NHS agreements on sick pay, annual leave and incremental credit. 5.2 Re-appointment of previous NHS employees On returning to NHS employment, a previous period or periods of NHS service will be counted towards the employee s entitlement to annual leave On returning to NHS employment, a previous period or periods of NHS service will be counted towards the employee s entitlement to sick leave, where there has been a break or breaks in service of 12 months or less. 5.4 Continuous service: is the continuous length of time the individual has been employed in the NHS without a break in service, but excluding any service for which a redundancy payment or any other compensatory or termination payment has been made and previous service from which the employee has retired and for which pension benefits have been paid. 5.5 Break in service: is as defined in the NHS Redundancy Provisions. 5.6 Organisational change: is any structural or managerial change in the organisation of health service provision. Inclusive of change of base that involves additional travel. 5.7 Downgrading: occurs when the new post, irrespective of its band, grade or title has a salary scale with a maximum annual salary lower than the maximum annual salary for the current post. 5.8 Basic pay: is the weekly or monthly sum due in respect of the basic hours worked by the employee within the standard working week including contractual overtime, plus any payment made for statutory regulatory duties, any long-term recruitment and retention premia and for doctors and dentists clinical excellence awards, discretionary points or distinction award, but excluding any existing protection payments. 5.9 Off-scale salary point: is a salary point which falls part way between two salary points on a band or grade. 1 An employer must include all reckonable service when calculating annual leave entitlement (5.1.3) gives discretion to employers to decide what previous (non-nhs) employment can count towards annual leave entitlement. ISSUE 3 MARCH
5 Protection of Pay & Conditions of Service Mark time basis: means that the protected basic pay will be frozen and will not be increased by increments or pay awards for a given period Protected basic pay: is the value of the basic pay immediately prior to downgrading and will include payment of cost of living awards and any further increments during the period of protection Protection of earnings applies to basic payments and to a reduction in basic hours within a standard working week Basic payments will include: Bonus payments Special duty payments Proficiency allowances Unsocial hours Forensic lead payments On call and stand by duty Shift allowances Night duty Split duty Recruitment and retention premia 5.13 These basic payments must be a contractual feature of the individual s employment for the items to be included in protectable earnings. The basic earnings exclude any acting up allowances, fixed term payments/additional sessions or non-contractual overtime. The earnings will be calculated over the previous 12 week period. 6.0 ROLES AND RESPONSIBILITIES 6.1 Before protection is agreed, all alternative options will be considered, in accordance with the Trust s Organisational Change Policy. The arrangements must be discussed between the employee, represented by an accredited representative of a trade union or professional organisation, or a fellow employee, and the manager, advised by a manager/advisor from Human Resources. 7.0 TRANSFERS TO THE LOWER BAND or GRADE 7.1 On downgrading the individual will transfer to the new, lower band or grade, in one of the following ways: 7.2 If the individual s salary on the current band or grade is equal to a salary point on the lower band or grade, the individual will move across to that salary point on the lower band or grade and protection of basic pay will not be necessary. The individual will retain their incremental date. 7.3 If the individual s salary on the current band or grade is greater than the maximum salary point on the lower band or grade, the individual will move across to the maximum salary point on the lower band or grade and protection of basic pay will apply. 7.4 If the individual s salary on the current band or grade is a value between two salary points on the lower band or grade, the individual will move across to the lower band or grade on an off scale salary point of the same value and protection of basic pay will apply. The individual will retain their incremental date. At the next incremental date, the individual will move up to the next salary point on the lower band or grade. ISSUE 3 MARCH
6 Protection of Pay & Conditions of Service BASIC PAY PROTECTION 8.1 Protection on movement to a new post resulting in downgrading as a consequence of organisational change An employee required to move to a new post on a lower grade will be entitled to protection of the grading of the original post in accordance with the following schedule. Their entitlement will be to protection of their basic wage or salary. LENGTH OF CONTINUOUS SERVICE PERIOD OF PROTECTION Less than 1 year Nil 1 year to under 2 years 6 months 2 years to under 5 years 1 year 5 years to under 10 years 2 years Over 10 years 2 years Following the expiry of the protection period, employees with over 5 years continuous service at the time of the commencement of the protection arrangements will mark time on their existing basic wage/salary with no further increments or cost of living awards until the new basic wage/salary exceeds the mark time basic salary/wage. 8.2 Protection on the movement to a new post on the same grade but with reduction in earnings as a consequence of organisational change An employee required to move to a new post on the same grade but with lower earnings/reduction in non-basic pay allowances will be entitled to protection of earnings in accordance with the following schedule. LENGTH OF CONTINUOUS SERVICE PERIOD OF PROTECTION Less than 1 year Nil 1 year and under 3 years 6 months 3 years and over 12 months Protection of earnings applies to basic payments and to a reduction in basic hours within a standard working week. 9.0 ENHANCEMENTS IN THE NEW ROLE 9.1 Enhancements, on-call or overtime payments due in the new role will be paid at the rate for the new role PROTECTION OF NOTICE PERIOD 10.1 Employees who are downgraded and granted protection of basic pay who are entitled to a longer period of notice from the Trust in their current role than in the new role will continue to benefit from the longer period of notice for the period of mark time protection chosen, as described in paragraph 7.2, after which the period of notice will fall to that applicable to the new post. Statutory notice periods will apply as a minimum WHEN PROTECTION WILL CEASE 11.1 Protection of basic pay will cease: ISSUE 3 MARCH
7 ISSUE 3 MARCH Protection of Pay & Conditions of Service if the basic pay of the new post exceeds the protected basic pay, or if the employee is appointed to a different post where the basic pay equals or exceeds the protected basic pay, or if the employee is offered another suitable post with higher basic pay and unreasonably refuses to accept it, or if the employee chooses following an application to move to another post with basic pay lower than in the downgraded post, or if the employee leaves the employment of the Trust FLEXIBILITY 12.1 Where an employee aged 50 or over with 2 years' or over reckonable service, is down-graded and afforded protection in accordance with the agreement, the appropriate Executive Director will have the discretion to extend the period of protection. All such requests will be dependent upon the individual circumstances of each case and should be discussed with the Associate Director of HR who will ensure consistency in application. The discretionary decision of an Executive Director will not be subject to appeal Employees within 5 years of retiring will have their protection extended by up to a maximum of 5 years providing they have 5 years continuous NHS service. They will be asked to confirm in writing that they will retire within 5 years and to confirm that if they do not do so, they will repay any monies received in excess of the protection set out above If an employee accepts an alternative post at a lower salary then protection is conditional on the employee accepting any subsequent offer if another suitable post becomes available where the basic pay or grade exceeds that of the initially accepted alternative post DISSATISFACTION WITH THE APPLICATION OF THIS POLICY 13.1 Any employee who is dissatisfied with the way this policy is applied will be able to use the Trust s Grievance Policy TARGET AUDIENCE 14.1 All Trust employees REVIEW DATE 15.1 This policy will be reviewed in December 2012 or in light of organisational or legislative changes CONSULTATION 16.1 In partnership with Core Group and ELC LEGISLATION COMPLIANCE (This is not an exhaustive list): The Equal Pay Act 1970 & 1984 The Rehabilitation of Offenders Act 1976 The Mental Health Act 1983 & 2007 The Human Rights Act 1998
8 The Data Protection Act 1998 The Mental Capacity Act 2005 The Immigration and Asylum Act 2006 Work and Families Act 2006 The Equality Act MONITORING COMPLIANCE Protection of Pay & Conditions of Service The implementation of this policy and its effectiveness will be monitored on an ongoing basis by the Trust Board, relevant General Managers/Heads of Service, senior members of the Human Resource Departments and members of the Core Group. This monitoring process will include the consideration of employment relations statistics provided to management groups EQUALITY IMPACT ASSESSMENT 19.1 Following the EIA screening exercise it has been concluded that a full EIA is not needed. The policy aims to provide a framework which ensures that the needs of staff are supported where at all possible and that appropriate support and guidance is available to both staff and managers CHAMPION & EXPERT WRITER 20.1 The champion of this policy is Associate Director of Human Resources Expert Writer is Employment Relations Specialist. ISSUE 3 MARCH
9 Protection of Pay & Conditions of Service APPENDIX 1 POLICY/PROCEDURE: PROTECTION OF PAY & CONDITIONS OF SERVICE (previously 13.04) Issue: 03 Status: Author Name and Title: APPROVED Owen Fulton, Employment Relations Specialist. Issue Date: MARCH 2011 (REISSUED SEPTEMBER 2014) Review Date: DECEMBER 2012 Approved by: Distribution/Access: HR CORE GROUP Normal RECORD OF CHANGES DATE AUTHOR POLICY DETAILS OF CHANGE 11/06 J Fleet PE/45 Changes to house style and review date only 11/10 O. Fulton May 14 P Hall Change in policy number Changes to house style and review date, General principles, equality scheme, definitions, roles responsibilities, transfer to lower grade, basic pay protection, protection of notice, when protection would cease, dissatisfaction with the policy, legislative compliance. ISSUE 3 MARCH
10 Protection of Pay & Conditions of Service APPENDIX 2 EMPLOYEE RECORD OF HAVING READ THE POLICY TITLE OF POLICY: PROTECTION OF PAY & CONDITIONS OF SERVICE I have read and understood the principles contained in the named policy. PRINT FULL NAME SIGNATURE DATE ISSUE 3 MARCH
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