Appendix 3

Buy Down (grade) 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 how voluntary reduction in grade will be managed throughout Consignia plc.
2.	Audience   This policy applies to all Administrative and Operational Grades .
3.	Accountability   Personnel/Resources Directors of the Business Units will retain overall accountability throughout the process and for the application of the policy.
4   4.1     4.2	Communication   Preference exercises will identify those interested in possible buy down of grade to facilitate the placement of a Surplus Employee.   Where opportunities occur individuals will be contacted by Personnel Units or PCAs to discuss possible arrangements.
5   5.1     5.2     5.3   5.3.1                                             5.3.2         5.4     5.5	Policy   An employee may be permitted to reduce his/her grade (“Buy-Down”). where to do so would facilitate the placement of Surplus Employees   Buy-Down will be on a voluntary basis and at the discretion of Consignia. It will involve a variation to the employee’s contract of employment with no break in service.   Where the employee elects to Buy-Down, he/she will (at his/her option) either:   be paid a taxable lump sum payment equivalent to two years worth of the difference between the employee’s Pay[1] immediately prior to the transfer and the Pay applicable to the lower-graded new job as compensation (“the Compensation Payment”). Where this option is taken, the employee takes up the grade and all other terms and conditions of the new job immediately.   The Compensation Payment will be paid to the employee within 2 months of  the employee’s commencement of the new job.   Agreement to and receipt of the Compensation Payment will be subject to the employee’s agreement that,   a) upon termination of his/her employment for any reason whatsoever, or on promotion, during the period of two years immediately following the Compensation Payment (“the Compensation Period”), he/she will refund a proportion of the Compensation Payment to Consignia equivalent to the unexpired portion of the Compensation Period; and   b) any monies owing to him/her in this respect may be deducted from his/her wages/salary or any other payment due to be made from Consignia to him/her including any payment in respect of Voluntary Redundancy ( Standard Form 1.3.A contains a  pro-forma employee agreement).   or Continue to receive the level of Pay[2] that he/she was receiving immediately prior to the Buy-Down in the usual way for a period of two years following such Buy-Down (“the Reserved Rights Period”). At the end of the Reserved Rights Period, the employee will revert to the level of Pay for the lower grade (Standard Form 1.3.B contains a pro-forma employee agreement.   To minimise salary discrepancies, in such cases where the move is to a lower pay scale, the Pay to be applied in the new job should be the maximum of the grade of that new job.   For the avoidance of doubt, all other terms and conditions of employment will be those of the lower grade and new job immediately following the Buy Down.