POLICY ON THE PAYMENT OF ACTING ALLOWANCES

Transcription

1 POLICY ON THE PAYMENT OF ACTING ALLOWANCES Policy Effective from 1 April

2 DEPARTMENT OF LOCAL GOVERNMENT AND TRADITIONAL AFFAIRS POLICY ON THE PAYMENT OF ACTING ALLOWANCES 1. PURPOSE 1.1 The purpose of this policy is to compensate those officials who are appointed to act in higher posts. 2. BACKGROUND 2.1 The Department is a dynamic organisation which often results in officials having to act in higher, vacant posts. It has always been recommended that these periods be limited to three (3) months and that every endeavour should be made to fill the vacant post during this time. However, there have been deviations, as it has not always been possible to fill vacant posts within three (3) months. 2.2 Officials who were appointed to act in higher posts, were not compensated despite the provisions of the Public Service Regulations, The Public Service Regulations, 2001 make provision for the payment of an acting allowance to officials acting in higher posts provided that no more than two officials may simultaneously be compensated as a result of a single vacancy. 2.3 Officials were not compensated as payment could only be effected once the matter had been negotiated through the collective bargaining process. 2.4 The matter has been negotiated and the State as employer and organised labour has agreed upon the matter, resulting in Collective Agreement 1 of 2002, which regulates the payment of acting allowances. 3. LEGISLATION 3.1 Chapter 1, Part Vll B.5.1 of Public Service Regulations 2001, stipulates that a Head of Department may only compensate an employee for acting in a higher vacant post, in terms of a determination of the Minister made through the collective bargaining process. 2

3 4. SCOPE 4.1 This policy applies to all permanent officials within the Department. 5. PROVISIONS/ PRINCIPLES A framework for the compensation of employees who act in higher posts, is as follows:- 5.1 APPOINTMENT OF OFFICIALS BELOW THE SENIOR MANAGEMENT SERVICE Any official appointed to act in a higher post must be appointed in writing, provided that the appointment and approval to compensate an official acting in a higher post must be authorised by (a) (b) the Head of Department, where the acting appointment refers to a vacant post at salary level 9 or above; or an official at salary level 13 or above, where the acting appointment refers to a vacant post at salary level 8 and below Officials appointed to act shall be paid an acting allowance provided that:- (a) (b) (c) the post is vacant and funded; the period of appointment is uninterrupted and longer than six weeks; and no more than two employees are simultaneously being compensated as a result of a single vacancy The employer will pay the acting allowance on a monthly basis, provided that the first payment takes place in the month following the completion of the six weeks referred to in clause (b), backdated to the date that the employee officially began acting The acting allowance will be calculated on the basis of the difference between the current salary notch of the employee and the commencing notch of the higher post. 3

4 5.1.5 An employee, who is not part of the Senior Management Service (SMS) appointed to act in a post of the Senior Management Service, will receive the difference between his / her current salary notch and 60% of the commencing total cost of the employer package applicable to the post level in which he/she is appointed to act An employee may not act in a higher post for an uninterrupted period exceeding twelve months The fact that an employee has been appointed in an acting capacity does not create a right or legitimate expectation to be appointed when the vacant post is advertised. However the period must be viewed as a training and development opportunity for career progression as well as an opportunity for personal development. The employee will have to compete with other candidates, who have also applied for the post when the post is being filled The acting allowance is a non-pensionable allowance If employees are appointed to act in vacant higher posts, every endeavour must be made to fill the vacant post as soon as is reasonably possible. Disciplinary action will be taken against Directors or equivalent ranks, for failure to fill vacant posts without valid reasons If an official who has been appointed to act proceeds on leave for periods less than a week, then he/she is still eligible to be compensated provided that no other official is appointed to act in his/her absence Employees appointed to act, must accept their appointment in writing. 5.2 APPOINTMENT OF OFFICIALS BELONGING TO THE SENIOR MANAGEMENT SERVICE A member must be appointed in writing to act in a higher post, by the Head of Department Members appointed to act shall be paid an acting allowance provided that: (a) the higher post in which he/she is acting is vacant and funded, and 4

5 (b) the period of appointment is uninterrupted and longer than 6 (six) weeks The employer will pay the acting allowance on a monthly basis, provided that the first payment takes place in the month following the completion of the period referred to in paragraph 4 above, backdated to the date that the member officially began acting in the post A member may only act in a higher post for a maximum uninterrupted period of 6 (six) months. The acting allowance may only paid to an acting member for a maximum of 6 months, after which only permanent appointment will be considered for the relevant vacant and funded higher post unless prior approval is obtained from the relevant Executing Authority for reappointment of the acting member or appointment of a new member in the said post in an acting capacity A maximum of two members may receive the acting allowance proportionally if they are appointed to act in a single higher vacant post, provided that- a) the responsibilities attached to the higher vacant post are divided between the two members acting in such a post and expressed in the form of a ratio (i.e. 30/70%) before they are appointed to both act in such higher vacant post; b) the maximum (combined) acting allowance to be paid to the two members is the difference between the inclusive flexible remuneration package of the lowest graded member and the commencing inclusive flexible remuneration package of the higher graded vacant post. (This means that the expenditure may not exceed the expenditure if only the lowest graded member would have been appointed to act in the higher graded vacant post.); and c) the members individual acting allowances are to be determined proportional to the above-determined ratio. (This means that if the split in responsibilities between the members is 30/70% the one member will qualify for 30% and the other member 70% of the maximum (combined) acting allowance) The acting allowance is calculated on the basis of the difference between the current remuneration package of the member and the commencing remuneration package of the higher post A member on an inclusive flexible remuneration package, which includes a personal package, which is higher than the commencing inclusive flexible 5

6 remuneration package of the higher graded vacant post should receive the difference between his/her current package and the next higher remuneration package applicable to the vacant higher post, provided there is a difference If the payment of the acting allowance to a member who acts in a designated HoD position commences after the 1 st day or terminates before the last day of a month, the daily tariff is calculated by dividing the annual amount by 12 (number of months per year) and then by the number of days for the specific month The member must accept the acting appointment in writing before the acting allowance is payable The acting allowance is non-pensionable The fact that a member has been appointed in an acting capacity does not create a right or a legitimate expectation to be appointed when the vacant post is advertised. 5.3 PAYMENT OF THE HEAD OF DEPARTMENT (HoD) ALLOWANCE TO MEMBERS ACTING IN DESIGNATED HOD POSITIONS For acting in a vacant and funded designated HoD post, as contemplated in Schedules 1, 2 and 3 of the Public Service Act, 1994, the HoD allowance is payable in addition to the acting allowance referred to in paragraph 4 above, calculated at 10% of the member s current inclusive flexible remuneration package. The HoD allowance is payable with effect from the date the member is appointed, in writing, to act in the vacant designated HoD position In cases of suspension of the designated HoD, the payment of the HoD allowance must be terminated with effect from the date of suspension. The HoD allowance is payable with effect from this date to the member who is appointed, in writing, to act in the designated HoD position In cases of any other absences of the designated HoD (e.g. due to vacation, sick, special or study leave), excluding maternity leave, the payment of the HoD allowance must be terminated with effect from the date of commencement of absence, provided that the period of absence is going to be longer than 30 continuous days. 6

7 The HoD allowance is payable to a member who is appointed, in writing, to act in the designated HoD position with effect from the date of termination, provided that the period of acting in the designated HoD position is going to be longer than 30 continuous days In cases of maternity leave, the payment of the HoD allowance must not be terminated for the incumbent of the position. However the HoD allowance is similarly payable to a member who is appointed in writing to act in the designated HoD position with effect from the date of commencement of maternity leave, provided that the period of acting in the designated HoD position is going to be longer than 30 continuous days In the circumstances referred to in paragraphs 5.3.2, and above, the acting allowance referred to in paragraph 4 is not payable because the post is not vacant HoD s employment contracts must stipulate that the payment of the HoD allowance will be terminated in the cases referred to in paragraphs and above If the payment of the HoD allowance to a member who acts in a designated HoD position referred to in paragraph 11 commences after the 1 st day or terminates before the last day of a month, the daily tariff is calculated by dividing the annual amount by 12 (number of months per year) and then by the number of days for the specific month. 6. GENERAL MEASURES 6.1 No person may be appointed to act in a higher post unless they meet the appointment requirements of the higher post. 6.2 Seniority and position/rank will not be the qualifying criteria when appointing someone to act. Qualifications and relevant experience will be the only qualifying criteria. 6.3 Managers must be more circumspect when appointing people to act in higher vacant posts. 6.4 No more than two persons will be appointed to act as a result of a single vacancy. 7. MONITORING 7.1 Copies of appointment letters and the acceptance must be submitted to the 7

8 Directorate: Human Resource Management for filing on the employee s personal file. 7.2 Each Chief Directorate shall submit quarterly returns within two weeks after the end of the quarter on staff appointed to act within that Chief Directorate, to the Human Resource Administration Section, who will in turn, submit consolidated returns to the Head of Department. The attached Annexure A must be utilised for this purpose: (a) (b) (c) (d) (e) period that the official has been acting for; post and salary level that the official is acting in; rank and salary level of the official appointed to act; reasons for the post not being filled permanently; the monthly financial compensation granted to the official. 8. DATE OF EFFECT 8.1 This policy is effective from 1 April 2005 and replaces any other previous policy. 8. CONCLUSION 9.1 The decision to appoint officials to act in higher posts must be continually reviewed due to the resultant financial implications. Compiled and amended by: Sunita Ramouthar - June 2003 Ricka Werner - January 2004 Sunita Ramouthar March 2005 PROSPEROUS AND HARMONIOUS COMMUNITIES 8

9 INQUBEKELA PHAMBILI NENTUTHUKO EMPHAKATHINI 9

10 10 QUARTERLY RETURNS - ACTING ALLOWANCE ANNEXURE A RETURNS TO BE SUBMITTED WITHIN TWO WEEKS AFTER EACH QUARTER TO: (Nil returns also to be submitted) MRS K PILLAY 4 th floor North Tower Natalia Building PIETERMARITZBURG CHIEF DIRECTORATE NAME PERSAL NO EMPLOYEE S RANK POST IN WHICH ACTING 1. EMPLOYEE S SALARY NOTCH SALARY OF POST IN WHICH ACTING REASON FOR POST NOT BEING FILLED PERMANENTLY MONTHLY FINANCIAL COMPENSATION GRANTED MANAGER S SIGNATURE / PRINT NAME DATE