JOINT CONCILIATION COMMITTEE OF THE HEATING, VENTILATING AND DOMESTIC ENGINEERING INDUSTRY COMPRISING: 107 Building & Engineering Services Assocition (B&ES) (formerly Heting nd Ventilting Contrctors' Assocition (HVCA)) Unite the Union ESCA HOUSE, 34 PALACE COURT, BAYSWATER, LONDON W2 4JG TEL: 020 7313 4900 23 April, 2012 TO EMPLOYERS AND EMPLOYEES IN THE HEATING, VENTILATING, AIR CONDITIONING, PIPING AND DOMESTIC ENGINEERING INDUSTRY Der Sir/Mdm Introduction H&V Opertive Ntionl Agreement Welpln Supplement Rule E (Welfre Benefits Entitlement nd Pyment) Revision The Assocition nd the Trde Union, s the Prties to the H&V Opertive Ntionl Agreement, hve recently concluded comprehensive review of Rule E of the Welpln Supplement to the Ntionl Agreement, concerning Welfre Benefits Entitlement nd Pyment under the Welpln Scheme. The purpose of this JCC Letter is to drw these developments to your ttention. This review hs een occsioned y numer of fctors. Aprt from the need for some generl up-dting nd simplifiction of previous wording, relevnt provisions of Rule E hve hd to e chnged to reflect: i ii iii the introduction of the Government s Fit Note scheme for the certifiction of sickness sence; provisions of the ge discrimintion legisltion; nd numer of importnt legl decisions concerning sickness sence nd nnul holidy. In ddition, it hs een necessry, in the light of experience of operting the Scheme, to provide n greed definition of numer of key terms. Principl Chnges The principl chnges re: i ii iii iv the inclusion of n greed definition of key terms such s Active Employment nd Accident t Work ; revision of the definition of Doctor s Certificte to reflect the introduction of the Government s Fit Note scheme; removl of references to ge 65 s the cut-off point for eligiility for certin enefits, sustituting Stte Pension Age insted; clrifiction in rule E12 of the rrngements pplying if n Opertive is prevented from tking his holidy y virtue of sickness sence or ccident; 1
v vi vii viii clrifiction in rule E35 of the purpose of the Permnent Totl Disility Benefit (PTDB) of the Scheme; removl of the ge-relted reduction tpering which previously pplied to PTDB pyments; clrifiction in rule E41 of the procedure for the ssessment of n Opertive s eligiility for potentil pyment of PTDB; nd clrifiction t rule E42 of the enefits tht pply under the Scheme to Opertives remining in employment eyond Stte pension Age. The rrngements in the revised text of Ntionl Agreement Welpln Supplement Rule E which is set out in full in the Appendix to this JCC Letter re permissive. They should not e red s conferring ny prescriptive right on ny Opertive to e retined in ctive employment y his Employer eyond Stte Pension Age. Tht is, nd remins, mtter for individul greement etween the Opertive concerned nd his Employer. Signed on ehlf of nd s uthorised y BUILDING & ENGINEERING SERVICES ASSOCIATION B. JUDD, Chief Executive Signed on ehlf of nd s uthorised y UNITE the UNION B. McAULAY, Ntionl Officer Construction nd Contrcting 2
APPENDIX to JCC LETTER 107 H&V Opertive Ntionl Agreement Welpln Supplement Rule E Welfre Benefits Entitlement nd Pyment 1 All Opertives shll e entitled to sickness nd ccident enefit nd other welfre enefits under the Scheme s hereinfter provided. Although this section uses the expressions entitlement nd eligiility to enefits nd the liilities of Welpln Ltd, Opertives should note tht the wrd of the following enefits is t the discretion of Welpln Ltd up to mximum mount from time to time greed etween the Assocition nd the Union (nd similr expressions where used in this section in reltion to the following enefits shll e construed ccordingly): i sickness nd ccident enefit (see rule E16) ii deth enefit (see rule E26) iii ccidentl dismemerment enefits (see rule E34) iv permnent totl disility enefit (see rule E40). Rtes 2 The rtes of welfre enefit shll e: c greed from time to time etween the Assocition nd the Union enumerted in n Appendix to the Ntionl Agreement reviewed to tke ccount of chnges in wge rtes, income tx, sttutory sick py or in Ntionl Insurnce sickness, ccident nd disility enefits. The mount of deth enefit is suject to rules E26 nd E28. In ddition, there re limits under tx lw on the mximum mount of pension nd lump sum deth enefits tht cn e pid without incurring tx chrge. (Detils re ville on request from Welpln). Pyment y Welpln Ltd 3 Where n Opertive is entitled to welfre enefit(s) under the Scheme, enefit(s) shll e pid y Welpln Ltd suject to the oservnce of the Scheme y the Employer including the purchse of weekly credits for ll Opertives. Pyment y Employer(s) 4 Where n Opertive is entitled to welfre enefit(s) under the Scheme, enefit(s) shll e pid y the Employer if he hs not fulfilled the conditions in rule E3. The procedure to e followed should e dpted s necessry nd the sme conditions for pyment of enefits shll pply (see lso rule E26). Employment Qulifiction 5 To fulfil the employment qulifiction (which is not lwys required) n Opertive must t the time of incpcity, disility, ccident or deth: e in the ctive employment of n Employer under the Ntionl Agreement; nd hve een in such ctive employment for t lest four weeks of the eight weeks preceding the incpcity, disility, ccident or deth. Notes: Active Employment: Active employment mens ny period during which n Opertive is employed under the Ntionl Agreement under contrct of employment s defined in Section 230(2) of the Employment Rights Act 1996, nd is either: 3
ville nd le to dischrge his/her employment duties nd/or crry out his/her work, in ccordnce with the terms of his/her employment contrct; or is unle to dischrge his/her contrctul duties in circumstnces where he/she is entitled to receive pyment in respect of sickness nd ccident enefit under the terms of the Ntionl Agreement Supplement. Except tht ny Opertive who is sent y reson of nnul leve, erevement leve (s defined in the Ntionl Agreement), mternity, pternity, doption or prentl leve, time off for trde union duties nd ctivities in ccordnce with the ACAS Code of Prctice, pulic duties for which time off is required under the Employment Rights Act 1996 or ny other reson for which the Opertive cn produce evidence to the stisfction of the Employer tht such sence ws due to circumstnces eyond the Opertive s control shll e deemed to e in ctive employment for the period of tht leve or sence. Service Qulifictions: If the Employer hs properly purchsed weekly credits for the Opertive he/she will therefore normlly hve t lest four credits in the preceding eight weeks. An Opertive entering the Industry for the first time must serve t lest four weeks ctive employment with n Employer under the Ntionl Agreement nd hve t lest four credits in the first eight weeks of employment to e entitled to welfre enefits. Once the four weeks ctive employment hve een completed, weeks lso count where, in ccordnce with rule B9, no credit ws purchsed ecuse of prolonged sence due to sickness or ccident. Sickness nd Accident Benefit 6 The comined pyment to which n Opertive shll e entitled when sick shll e sum equl to ny sttutory sick py due under the regultions mde under the Sttutory Sick Py Act 1994, plus ny sickness nd ccident enefit due under rule E2 for the sme period. 7 An Opertive shll e entitled to sickness nd ccident enefit under the Scheme if: c he/she fulfils the employment qulifiction in rule E5 nd s result of odily injury or sickness he/she is unle to ttend work or to engge in ny ginful occuption for wge or profit nd he/she provides, for periods of sence for sickness/ccident of four complete dys up to nd including seven complete dys, self-certificte of incpcity or, for periods of sence for sickness/ccident in excess of seven dys, self-certificte of incpcity for the first seven dys nd therefter certificte of incpcity from registered medicl prctitioner. Note: Self Certificte: Any one of the following will e ccepted s self-certificte: i the Employer s own form of self-certificte otinle from the Employer ii HM Revenue nd Customs (HMRC) form of self-certificte (SC2), ville from doctors surgeries, hospitls, Jocentre Plus nd HMRC offices or their wesite iii Welpln form of self-certificte printed on the reverse side of the Welpln sickness nd ccident enefit clim form, otinle from the Employer. Doctor s Certificte: Evidence from registered medicl prctitioner my e: i copy of Sttement of Fitness for Work (MED3), or ii the Welpln supplementry clim form. 8 Suject to rule E7, pyment of enefit shll: c egin on the fourth dy of disility, i.e. there will e no pyment in respect of the first three dys of disility unless the disility lsts t lest four weeks (s defined in rule E9), in which cse pyment will e mde retrospectively for the first three dys of disility, e clculted on seven dy week sis (including Sturdy nd Sundy), e pid for mximum period of up to 52 weeks for ny one continuous period of disility, 4
d e pid (in cses where n Opertive s registered medicl prctitioner hs recommended phsed return to work, i.e., temporry period of prt-time working involving complete dys t work) only for complete dys of sence. NB: No sickness nd ccident enefit shll e pid when n Opertive works reduced hours dily (in cses when his/her registered medicl prctitioner hs recommended temporry period of ltered or reduced hours of dily ttendnce). 9 Periods of disility certificted y self-certifictes or registered medicl prctitioner seprted y up to eight weeks which qulify to e pid under rule E7 shll e dded together to form one period of disility. 10 No enefit shll e pyle for disility which results from or is cused directly or indirectly y: self-inflicted injury or illness while sne or insne insurrection or wr whether wr hs een declred or not, or ny ct incidentl thereto, or prticiption in ny riot or strike. 11 No enefit shll e pyle for ny disility which commences while n Opertive is on strike whether officil or unofficil, ut enefit shll e pyle if the strike commences fter n Opertive suffers disility. Benefit shll lwys e pyle in respect of ny period of disility which continues fter the end of strike: in which cse the first three dys of disility referred to in rule E8 shll include dys of disility during the period of the strike. 12 c Sickness nd ccident enefit my e pid to n Opertive on holidy, if he is prevented from tking his holidy y virtue of the period of sickness sence or ccident, provided doctor s certificte is furnished in ccordnce with rule E7c. Dys of disility whilst on holidy shll count towrds the three witing dys only if the Opertive hs elected to tke those dys s sick leve rther thn holidy. Where sickness sence prevents holidy eing tken, holidy py shll e held over nd pid when the holidy is tken. 13 Rules E6-E12 shll e reviewed following ny chnge y the Government to the system of Sttutory Sick Py or other sttutory sickness nd ccident nd disility enefits nd modifictions to these rules shll e effective from the sme dte s the Government chnges. 14 Liility for pyment of enefit shll e in ccordnce with rules E3 nd E4. 15 Where Welpln Ltd is lile for pyment the Opertive must sumit to his/her Employer self-certificte of incpcity nd enefit will only e pyle if this is done promptly. Pyment shll e mde weekly to the Opertive through his/her Employer. 16 Pyment y Welpln Ltd shll e t the solute discretion of the trustee compny, Welpln Ltd, oth s to eligiility nd mount. 17 Where n Opertive is eligile for enefit in respect of disility nd his/her employment is (for ny reson) terminted during the period of the disility, this shll not prejudice or otherwise ffect the Opertive s continuing eligiility for enefit in respect of tht disility. 18 If there is insufficient medicl evidence ville to sustntite continued pyment of enefit under rule E17, supplementry clim form will e issued y Welpln Ltd nd must e completed y registered medicl prctitioner nd returned to Welpln Ltd efore further pyments re mde. 19 In ll cses, Welpln Ltd (or the Employer) shll hve the right to require the Opertive to undergo medicl exmintion y n independent registered medicl prctitioner to otin second opinion. Deth Benefit 20 All Opertives shll e entitled to deth enefit under the Scheme suject to the conditions set out elow. 5
21 Where deth rises from n ccident t work or trvelling to or from work the Opertive shll e eligile for deth enefit (regrdless of ge or service) if t the time of the ccident he/she ws in the ctive employment of n Employer under the Ntionl Agreement. Note Accident t Work: Deth shll e deemed to hve risen t work from n ccident t work where deth occurred s direct result of specific incident which resulted in physicl hrm to the Opertive nd which took plce either whilst the Opertive ws lwfully present on work premises or during the course of n Opertive crrying out his duties under his contrct of employment. For the voidnce of dout this does not include deth following the development of n occuptionl illness over period of time, including deth following n illness which hs risen s direct result of the specific incident. 22 Where deth rises from ny other cuse the Opertive shll (suject to rule E28) e eligile for deth enefit if, t the time of deth, he/she ws under the Stte Pension Age nd he/she either: i fulfilled the employment qulifiction in rule E5; nd ii hd completed t lest six months ctive employment in the Industry in the three yers prior to deth, or would hve fulfilled the conditions in rule E22 ut for the fct tht within four weeks prior to deth his/her employment hd een terminted nd he/she hd remined unemployed up to the time of deth. Opertives over the Stte Pension Age who fulfil the provisions outlined t E22 nd ove my lso qulify for deth enefit. 23 Deth enefit shll normlly only e pyle to the Opertive s dependnts (if ny) i.e. normlly to such person or persons who re wholly or prtilly dependent upon the Opertive for their mintennce. 24 Liility for pyment of deth enefit shll e in ccordnce with rules E3 nd E4. 25 Where Welpln Ltd is lile for pyment, clim for deth enefit must e sumitted on form otined from Welpln Ltd, together with n extrct of the Opertive s irth certificte, deth certificte nd mrrige certificte (where pproprite). 26 Pyment y Welpln Ltd shll e t the solute discretion of the trustee compny, Welpln Ltd, oth s to eligiility nd mount. The mount of the deth enefit shll hve regrd to ny prior pyment in respect of ccidentl dismemerment enefits nd/or permnent totl disility enefit under the Scheme nd to the period etween pyment of such enefits nd the deth (see rules E2, E28, E29-34 nd E35-40). 27 Where the Employer is lile for pyment, the Opertive s dependnts my seek the guidnce of the trustee compny s to their entitlement. 28 Disility Wiver Where n Opertive suffers continuing disility (suject to resonle proof) fter eligiility for sickness nd ccident enefit hs cesed; nd t the time of the disility, he/she: i fulfilled the employment qulifiction in rule E5; nd ii hd completed t lest six months ctive employment in the Industry in the three yers prior to the disility; nd c t the time of deth ws under the Stte Pension Age he/she shll while so disled, regrdless of whether or not his/her employment is terminted, e eligile for deth enefit (suject to rule E41). 6
Under this rule the mount of deth enefit shll (suject to rules E2 nd E26) e t the rte in force t the time of deth. Accidentl Dismemerment Benefits 29 All Opertives shll e entitled to ccidentl dismemerment enefits under the Scheme suject to the conditions set out elow. 30 In ll cses pyment of enefit is conditionl upon loss of lims or digits or sight occurring y ccidentl mens within 90 dys of the ccident, ut excluding self-inflicted injury, insurrection, wr or riot, disese or infection, odily or mentl infirmity or dismemerment cused y medicl or surgicl tretment, commission of ssult or felony y the Opertive, tking of poison or inhltion of gs. 31 An Opertive shll e eligile for enefit(s) if he/she either: fulfils the employment qulifiction in rule E5 nd (suject to rule E30) loses y ccidentl mens one or more lims or one or more digits or sight of one or oth eyes or would hve fulfilled the qulifiction in rule E31 ut for the fct tht within four weeks prior to ccidentl injury his/her employment hd een terminted nd he/she remined unemployed up to the time of the ccidentl injury. Note: The enefit entitlement is hlved for loss of sight in one eye only. 32 Liility for pyment of ccidentl dismemerment enefits shll e in ccordnce with rules E3 nd E4. 33 Where Welpln Ltd is lile for pyment, clim must e sumitted on form otined from Welpln Ltd together with proof of clim sustntited y such medicl evidence s shll e required y Welpln Ltd. 34 Pyment y Welpln Ltd shll e t the solute discretion of the trustee compny, Welpln Ltd, oth s to eligiility nd mount. Permnent Totl Disility Benefit 35 All Opertives shll e entitled to permnent totl disility enefit under the Scheme suject to the conditions set out elow. Permnent totl disility enefit is intended s contriution towrds compensting n Opertive for his/her reduced ernings potentil following permnent totl dislement. Entitlement ceses on reching Stte Pension Age or (if dislement rises from n ccident t work or while trvelling to or from work) five yers fter reching Stte Pension Age. 36 In ll cses, suject to rule E35, pyment of enefit is conditionl upon permnent totl dislement from ginful occuption, y ccidentl or nturl cuses, ut excluding self-inflicted dislement or dislement resulting from insurrection, wr or riot, or the commission of ssult or felony y the Opertive. 37 An Opertive shll e eligile for the enefit when he/she: i hs fulfilled the employment qulifiction in rule E5 nd (suject to rule E36) is permnently nd totlly disled from ginful occuption; nd ii hs received the mximum sickness nd ccident enefit entitlement (under rule E8) or would hve fulfilled the qulifictions in rules E37 i nd ii ut for the fct tht within four weeks prior to the expiry dte for mximum sickness nd ccident enefit entitlement his/her employment hd een terminted nd he/she hd remined unemployed up to the time of the dislement. 38 Liility for pyment of permnent totl disility enefit shll e in ccordnce with rules E3 nd E4. 39 Where Welpln Ltd is lile for pyment, clim must e sumitted on form otined from Welpln Ltd, together with proof of the clim sustntited y such medicl evidence s shll e required y Welpln Ltd. 40 Pyment y Welpln Ltd shll e t the solute discretion of the trustee compny, Welpln Ltd, oth s to eligiility nd mount. 7
Effect of Pyment of Permnent Totl Disility Benefit on Entitlement to Deth Benefit (Residul Deth Benefit) 41 Suject to rules E35-E37, fter n incpcitted Opertive hs received 52 weeks sickness nd ccident enefit he/she will e invited to e ssessed for eligiility for pyment of permnent totl disility enefit. If the Opertive opts not to e ssessed or, fter ssessment, is found not to e permnently totlly disled, he/she will e entitled to ongoing deth enefit cover under rule E28 ( Disility Wiver ) or, if he/she returns to ctive employment, under rules E21 nd E22. Where n Opertive is ssessed for permnent totl disility enefit nd is found not to e permnently totlly disled, nd therefore entitled to Disility Wiver, he/she cnnot susequently qulify for permnent totl disility enefit. Pyment of permnent totl disility enefit shll restrict the Opertive s entitlement to deth enefit under rule E28 s follows: i ii the mount of deth enefit is reduced y the mount of the permnent totl disility enefit pid; nd the mximum durtion of the deth enefit cover shll e no more thn three yers, clculted from the dte of the totl disility pyment, or until the ttinment of Stte Pension Age, whichever is the erlier. Opertives remining in Active Employment eyond Stte Pension Age 42 Sickness nd ccident enefit, ccidentl dismemerment enefits, deth enefit (under rule E21 nd E22) nd permnent totl disility enefit rising from n occuptionl ccident (under rule E35) shll e provided for Opertives in ctive employment eyond Stte Pension Age. For the voidnce of dout, provision of disility wiver (rule E28), permnent totl disility enefit where disility is not due to n occuptionl ccident (rule E35) nd residul deth enefit (rule E41) re excluded from these rrngements s entitlement shll cese t the Stte Pension Age. 8