Appendix 2

PAY PROTECTION POLICY

This document forms part of the Managing the Surplus Framework - Administrative and Operational Grades and should be read in the context of the Framework as a whole and all the documents which constitute it. Information for line managers on the deployment of the Framework is set out in the Guide to Deployment of Managing the Surplus Framework.

 

1.	Purpose        The aim of this policy is to provide clear direction on the terms that will apply to Surplus   Employees placed into positions which attract less favourable terms and conditions in terms of Pay, pensionable allowances and regional pay than they enjoy or enjoyed in their old job.
2.	Audience    This policy applies to all Administrative and Operational Grades of Surplus Employees of Consignia plc.
3.	Accountability Personnel / Resources Directors of the Business Units will retain overall accountability throughout the process and for the application of the policy.
4.	Communication Affected employees will be individually notified by their PCA or Personnel Unit who will explain the terms available to them.
5.   5.1       5.2                         5.2.1         5.2.2                                                           5.2.3                                     5.2.4           5.2.5                                                               5.3               5.4     5.5	Policy   Every reasonable effort will be made to place an employee at his/her substantive grade and on equivalent terms, conditions and allowances; however there will be occasions where this is not possible.   A Surplus Employee who cannot be found a suitable alternative job on the same terms and conditions, or allowances and who is matched against a position that attracts less favourable terms and conditions or allowances, because the new job is either at:   a) a lower grade in the same or a different Business Unit; or b) a broadly similar level in another Business Unit with different pay structures; or c) the same grade but which does not attract the same allowances or shift payments and would result in a reduction in pay or allowances will be entitled to the protections set out below: (For the avoidance of doubt where an employee is already in receipt of reserved rights this will continue to apply for it’s full duration.)   Protection of Pay Following appointment to the new job the employee will remain on the Pay Rate[1] of his/her substantive grade in his/her Parent Business Unit in perpetuity from the date of transfer.     Protection of Pensionable Allowances – Employees under age 50, or 60 and above Where the new job carried out by the employee, who is less than age 50, or age 60 or more, attracts a lower level of pensionable allowances (and non-pensionable element of Service Delivery Night Shift Allowance if appropriate) than that received in total by the employee in his/her old job and, at the date his/her job ceases, the employee has been fulfilling a role to which these allowances applied continuously for:   a)    more than six months but less than twelve months he /she will be entitled to receive a lump sum payment equivalent to three months payment of the difference between the level of  allowances in the old job and the new job; b)    twelve months or more but less than twenty four months he /she will be entitled to receive a lump sum payment equivalent to six months payment of the difference between the level of allowances in the old job and the new job.   A sliding scale calculation based on yearly increments will then apply in respect of a maximum of eight years receipt of these allowances when the employee will be entitled to receive a lump sum payment equivalent to four years payment of the difference. Receipt of these allowances for more than eight years will not attract any additional payment.   Where the employee had been fulfilling the duty attracting pensionable allowances in his/her old job on a rotation basis payment, as set out above, will be made on a pro-rated basis.   There will be no requirement to recover such payments from the employee on leaving the business or returning to a higher level of earnings.   Any entitlement as a result of these protections will be set off against the amount of any increase in the employee’s Pay which the employee enjoys by reason of redeployment into the new job.   Protection of Pensionable Allowances – Employees aged 50 or more but less than 60 Employees who are aged 50 or more but less than 60, whose new job attracts a lower level of pensionable allowances (and non-pensionable element of Service Delivery Night Shift Allowance if appropriate) than that received in total by the employee in his/her old job and, at the date his/her job ceases, the employee has been fulfilling a role to which these allowances applied continuously for more than six months, then he/she will continue to receive the difference between the old level of allowances and the new, as if they were still carrying out the previous role. This protection of allowance will continue for a maximum of ten years or until the employee is aged 60 whichever is the earlier.   Where the employee had been fulfilling the duty attracting pensionable allowances in his/her old job on a rotation basis payment, as set out above, will be made on a pro-rated basis.   Employees will be expected to take on responsibilities in the new job which attract equivalent pensionable allowances to those earned in their old job wherever possible. Any entitlement as a result of these protections will be set off against the amount of any increase in the employee’s pay, which the employee enjoys by reason of redeployment into the new job.   Overtime And Non Pensionable Allowances Protection Where an employee has earned overtime in the 13 weeks (or 3 months dependent on whether paid weekly or monthly) immediately prior to the move of job, where there is a reduced    opportunity for overtime and other earnings  he/she will receive a lump sum payment equivalent to the average difference of that last 13 week’s overtime and allowances pay.   Protection of Regional Pay Where the new job attracts a lesser amount of regional pay than the employee received in his/her old job the following lump sum payments will be made to the employee in two equal annual instalments, the first payment being made with the employee’s next salary payment following the end of his/her trial period and confirmation into the new job. All payments will be made less the usual deductions, including tax and employee national insurance contributions and will only be made where the employee is in employment on the date for payment.   a)    Move from Inner London to National pay area  - £7,000 b)    Move from Outer London to National pay area - £3,500 c)    Move from Inner London to Outer London - £3,200   If, within two years after the transfer the employee leaves Consignia, or moves to an area with higher regional pay, any and all payments made will be recoverable in full. It is a condition of payment of the above sums that the employee agrees to such repayment and in particular than any outstanding monies may be deducted from monies owing to him/her by Consignia. (Standard Form 1.2.A contains wording for this employee agreement)   In addition to the payments referred to above, the employee will continue to receive the regional pay element of his/her salary in his/her old job until such time as his level of Pay and regional pay in the new job (taken together) equates with or exceeds the level of Pay and regional pay he/she was receiving in his/her old job immediately prior to the transfer.   Where the employee who is entitled to receive Protection of Regional Pay is aged between 50 and 60 he/she will have the option of continuing to receive the current level of regional pay until age 60 (maximum of 10 years) to maximise pensionable earnings, as an alternative to receiving the lump sum payments and mark time provision described above.    Where an employee is entitled to receive an excess travelling payment, regional pay protection will not be netted against the ETE ceiling.   Additional Protection where new job is at a lower grade Where the new job is at lower grade efforts will continue to be made to place the employee at his/her former substantive grade.  The search for suitable alternative employment at his/her former substantive grade will continue.   The employee may opt to take Voluntary Redundancy as an alternative to taking a transfer to which this policy applies.   Costs The costs associated with this policy will be borne by the Parent Business Unit.   Movement to a job at a higher pay rate Where an employee is appointed to a post which is at a broadly similar level in another Business Unit but where the different pay structure will result in a higher Pay Rate than that he/she enjoys immediately prior to the transfer, the employee will transfer to the new structure at the incremental step which is immediately above his or her current actual Pay Rate.