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Appendix 18 Pay Policy Statement 2019/20

Appendix 18 Pay Policy Statement 2019/20. Pay Policy Statement 2019/20. P a y Po li c y S t a t e m e n t f o r t h e Y e a r 2 0 19 /20

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Appendix 18 Pay Policy Statement 2019/20

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  1. Appendix 18 Pay Policy Statement 2019/20 Pay Policy Statement 2019/20 PayPolicyStatementfortheYear2019/20 ThePayPolicyStatementsetsouttheCouncil’sapproachtopaypolicyinaccordancewithinthe requirementsofSection38oftheLocalismAct2011.ThePayPolicyStatementhasalso beenrevisedtotakeintoaccounttheCouncil’sapproachtoapprovalbyFullCouncilfor severancepaymentsinexcessof£95KinlinewithguidancereceivedfromtheDepartmentfor Communities andLocalGovernment(DCLG).This paypolicyapplies for theyear2019/20 unless replacedorvaried by Full Council. Itdoesnotcoverteachingstaffwhosesalariesandtermsandconditionsofemploymentareset bytheSecretaryofState.AcademySchoolsareanentirelyseparatelegalentityfromthe CouncilandarecoveredbyAcademiesAct2010andasaseparateemployerareresponsible for settingsalariesfortheiremployees. ThepurposeofthePayPolicyStatementistoensuretransparencyandaccountabilitywithregard totheCouncil’sapproachtosettingpay. ThePayPolicyStatementhasbeenapprovedby CouncilandispublicisedontheCouncil’swebsiteinaccordancewiththerequirementsofthe LocalismAct2011 in Marcheach year. Underlying Principles TheCounciliscommittedtoandsupportstheprincipleofequalpayforallouremployees.Equal paybetweenmenandwomenisa legalrightunderbothUnitedKingdom andEuropean Law.TheEqualityAct2010requiresemployersnottodiscriminateongroundsofraceand disabilityand similarrulesapplytosexual orientation,religion andage. TheCouncilappliestermsandconditionsofemploymentthathavebeennegotiatedandagreed throughappropriatecollectivebargainingmechanisms(nationalorlocal)orasaconsequenceof authoritydecisions,these arethen incorporatedintocontractsofemployment. 2019/20 Tameside MBC Budget Report

  2. Appendix 18 Pay Policy Statement 2019/20 • ThePayPolicyStatementidentifies: • The method bywhichsalariesandseverancepaymentaredetermined. • Thedetailandlevelof remunerationof theCouncil’smostseniormanagersi.e.Chief ExecutiveandLeadershipTeam,whichaccordswiththerequirementsofthe Localism Act 2011. • The process for ensuringthatthe Pay PolicyStatement is applied consistently, includingtheStaffingPanelwhichhasdelegatedpowersinrelationtoseniormanagerpay and employment. • Thedetailandlevelofremunerationforthelowestlevelofemployee. • Theratio ofpayofthetop earnerandthatofthemedian earner. • ItshouldbenotedthatthePayPolicyStatementdoesnotincludeinformationrelatingtothepay ofTeachersorSupportStaffinschoolswhoareoutsidethescopeoftheLocalismAct2011. • ThisStatementcomplieswith all statutoryand legal requirements. • In this policyweusethe term “Senior Manager” tomeanthesameas“chiefofficer” as describedintheLocalismAct2011.TheCouncilalreadyseparatelypublishesinformation aboutpayand averagepay,which isalsosetouthere. 2019/20 Tameside MBC Budget Report

  3. Appendix 18 Pay Policy Statement 2019/20 • Policyon the remuneration of itsSenior Managers • ChiefExecutiveandChiefOfficersconditionsofserviceareinlinewiththeJointNegotiating CommitteesforChiefExecutivesandChiefOfficers. ThepaylevelsfortheChiefExecutive andDirectorsaredeterminedby theCouncil’sSeniorStaffingPanelonappointment, havingregardtotheCouncil’sdutytoensurebestvalueandaftertakingprofessionaladviceon paylevels,marketconditionsand otherrelevantemploymentfactors. • AssistantDirectorpayisdeterminedbyajobevaluationprocess,whichwas undertakenin2011.TheschemeusedwasonedesignedbytheLocalAuthorityEmployers Organisation,whichadvisesCouncilsatanationalandregionallevelonemploymentandpay issues. • Thelevelofremunerationisdeterminedassetoutabove.Otherthanallowableoutofpocket expenses,theCouncildoes notmakeother payments toSenior Managers inaddition to basicsalaryforundertakingtheircorerole.Overtimeisnotpayable to SeniorManagers. • Anyremuneration package in excess of£100K will be determined by Council. • 2. Policyon the remuneration of itslowestpaid employees • Inthispolicy,weusethedefinitionoflowestpaidemployeeasbeingthosepaidonspinal columnpoint6oftheNationalJointCouncilforLocalGovernmentServicesplustheLiving WagesupplementpaymentwhichwasintroducedwithintheCouncilpaystructurein September2016.Weusethisbecauseitisthelowestsubstantivepaygradeusedforlocal authorityemployees. • Ourpolicyisthatanemployeewouldnormallyonlybepaidatthisrateiftheywereinthefirst yearofappointmenttoapostwhichhasbeenevaluatedunderthenationalschemefor evaluatinglocalauthorityjobs.TheCouncilusesthenationallyagreedjobevaluation schemeforemployeesoflocalauthoritieswhichisusedbyalargeproportionofotherlocal authorities. • Oncesomeonehasbeeninpostayeartheywill,subjecttosatisfactoryperformance,moveto thenextincrementinthepayscale.Incrementsarepayableeachyearon1April,untilthe maximumpointofthegradeisreached. • The Council’s pay structure is available on the website at http://www.tameside.gov.uk/paystructure 2019/20 Tameside MBC Budget Report

  4. Appendix 18 Pay Policy Statement 2019/20 • 3. Policyon the relationship between- • the remunerationofitsSeniorManagers,and • the remuneration ofitsemployeeswhoarenot SeniorManagers • TheCouncilhasnoformalpolicyontherelationshipbetweentheremunerationofSenior Managers.TheHuttonreviewentitledFairPayinthePublicSectorconsideredthemultiple shouldbenogreaterthan20to1(lowerisbetter)andbasedonthecurrentsituationtheCouncil fallswellbelowthisthreshold. Theauthoritydoesnothaveapolicyonmaintainingor reaching aspecific‘pay multiple’,however,theauthorityisconsciousof theneed toensurethatthe salaryofthehighestpaidemployeeisnotexcessiveandisconsistentwiththeneedsofthe authority.Thesepayratesmayincreaseinaccordancewithanypaysettlementswhichare reached throughtheirrespective nationalnegotiatingbodies. • AtTameside,the paymultiplebetweentheChiefExecutive’spayandthelowestpaid employee in theorganisation is10.4:1andisthereforewellwithin thisrecommended range. • 4. Policyrelating to the remuneration ofSeniorManagers on recruitment • AllpostsaresubjecttotheCouncil’srecruitmentandselectionprocessforjobappointments, includingpromotion.Appointmentswillnormallybemadeattheminimumoftherelevantpay scaleforthegrade,althoughthiscanbevariedifitisnecessarytosecurethebestcandidate. WhenrecruitingtoallpoststheCouncilwilltakefullandproperaccountofallprovisionsof relevantlocalgovernment,employmentandequalitieslegislation. • Onoccasions,theCouncilmayneedtoconsidermarketforces supplementsforemployees,which mightincludeSeniorManagementposts.Authorisationarrangementsformarketforces supplementswouldbesubjecttoapprovalbytheSeniorStaffingPanel.Nosuchsupplements are currentlyin place. • TheCouncilwillensurethatbeforeanofferofappointmentismade,anysalarypackage forany postthat isinexcessof£100,000 isconsidered byfullCouncil. 2019/20 Tameside MBC Budget Report

  5. Appendix 18 Pay Policy Statement 2019/20 • 5. Policyrelatingtoincreases and additionstoremunerationforeachSeniorManager • SeniorManagersarepaidataspotrate salary. ThemajorityofCouncilstaffreceivenationally agreedpayawardswhentheyareapplied. ThesedonotapplytoSeniorManagersatAssistant Directorlevelandabove. TheSeniorStaffingPanelmakethedeterminationasto whetherandwhenthereistobeanincreaseinthecurrentspotratesalaries. AssistantDirector’sandDirectorsreceiveda2%payincreasetoreflectthenationalpayawardin 2018/19,andwillreceivea further2%increasein2019/20againtoreflectthenationalpay award. TheChiefExecutivehasreceiveda2%payawardin2018/19andwillreceiveafurther2% increase in 2019/20 toreflectthe nationalpayaward. • 6. Policyrelating to the use ofperformance related payforSeniorManagers • TheCouncil doesnotpay performance relatedpaytoSeniorManagersorany othermemberofthe workforce.TheCouncilbelievesthatithassufficientlystrongperformancemanagement arrangementsinplacetoensurehighperformance.Anyareasofunder-performancewouldbe addressedthroughthecapability/disciplinary procedure asappropriate. • 7. Policyrelating to the use ofbonusesforSeniorManagers • TheCouncildoesnotpaybonusestoSeniorManagersoranyothermember of the workforce anddoesnotintend to introduceanybonusschemes. • 8. TheapproachtopaymentofSeniorManagersontheirceasingtoholdoffice underor tobe employed bytheAuthority • TheapproachtopaymentofSeniorManagersisthesameasthosewhich applytoall Council employees. • Currently,theCounciloperatesaschemewhereemployeesmayapplyforvoluntaryseverance. Paymentsundertheschemearecappedatamaximumof30weeks’pay(basedontherateof paysetin2013)forallemployees,includingSeniorManagers.Anyapplicationswithinthis schemearesubjecttoapprovalbyDirector(Governance &Pensions).As indicatedwithintheVoluntarySeveranceScheme,theDirector(Governance&Pensions)isauthorisedtoconsideranyexceptionswherearobustbusinesscase exists to doso intheinterestsofthe organisation. 2019/20 Tameside MBC Budget Report

  6. Appendix 18 Pay Policy Statement 2019/20 • Employeeswhotakeseveranceundertheschemeareadvisedthattheydosoonthebasisthat theCouncilwillnotre-employthemandtheycontractuallycommittoreturninganyseverance costsshouldtheyapply forany jobswiththeCouncil,includingany Community School or VoluntaryControlledSchool,within 12 monthsoftheirleavingdate. • Compensationpaymentsforlossofofficeareconsideredinsituationswhereanemployee’spost becomesatriskand/ortheemploymentrelationshipisnolonger tenable.Amaximumpaymentof 12weeksapplies to all employees,includingSeniorManagers. • TheCouncil’sapproach isto treateachcaseonitsindividualmerits,takingprofessionaladviceon theappropriateness,andensuringthatallpaymentsrepresentvalue formoneyto thetaxpayer. • Employeeswhoare‘atrisk’,havingbeen displaced fromtheirrole,currentlyhavea4weekperiod fromthedatetheyarenotifiedtoaccesstheVoluntarySeveranceScheme,withtheadditional lossofofficepaymentinsomecircumstances.Ifanemployeedoesnotchoosetoaccessthe VoluntarySeveranceSchemetheywillbesupportedinsecuringalternativeemployment.Ifthe securedemploymentisatagradelowerthantheirpreviousposttheywillbeassimilatedtothe newgradeatthetopspinalcolumnpointandreceivepayprotectionuptotheirprevioussalary rateforamaximumperiodof6months. • Noseverancepackagewillbemadeinexcessof£95K.Thecomponentsofanysuchpackage willbeclearlysetoutandwillincludepayinlieuofnotice,redundancypayment,pension releasecosts,settlementpayments,holidaypayandanyfeesorallowancespaid. • 9. Transparency • TheCouncilmeets itsrequirements under theLocalismAct, theCodeofPracticeonData TransparencyandtheAccountsandAuditRegulationsinordertoensurethatitisopenand transparentregardingseniorofficerremuneration. • SeniorManagers’payispublishedontheCouncil’swebsiteeachyear. Thecurrentpayratesforseniormanagersareavailableat: • http://www.tameside.gov.uk/transparency 2019/20 Tameside MBC Budget Report

  7. Appendix 18 Pay Policy Statement 2019/20 • 10. Gender Pay Gap • From April 2017, gender pay legislation requires employers (public, private or voluntary sector) with 250 or more employees to publish statutory calculations every year showing how large the pay gap is between their male and female employees. • There are two sets of regulations which impose the mandatory gender pay gap reporting obligations on employers: • The Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 • The Equality Act 2010 (Specific Duties and Public Authorities) Regulations 2017 • The legislation requires the following 6 measures to be reported: • *Measures 3, 4 and 5 are not reportable at Tameside Council as there are no bonus payments. 2019/20 Tameside MBC Budget Report

  8. Appendix 18 Pay Policy Statement 2019/20 As at 31 March 2018 a snapshot of the Council’s workforce (including all employees, apprentices and casual staff in post) provides: 2019/20 Tameside MBC Budget Report

  9. Appendix 18 Pay Policy Statement 2019/20 • Tameside’s mean gender pay gap is +2.59% meaning that overall females have lower pay than males. Whereas, Tameside’s median gender pay gap is -8.47%% meaning that overall females have higher pay than males. • The mean gender pay gap has reduced from +3.03% in 2017, whilst the median gender pay gap has increased from -5.81% in 2017, demonstrating that the Council is supporting women to achieve higher pay. • Tameside’s negative median gender pay gap shows that females are paid more than males, due to the high percentage of females in the middle quartiles. Over half (50%) of females are in the middle quartiles. • However, overall there is a higher percentage of males in the highest paid jobs (28%), compared to 23% of females which results in a positive mean gender pay gap where men are paid more, with women earning 2.59% less per hour than their male counterparts. • The Council is committed to reducing the gender pay gap and will continue monitor and review recruitment and reward processes, develop career pathways to enable and support career progression and continue to support flexible working and family friendly policies to enable both men and women to progress within the workforce. • 11. Commitment to The Living Wage • TheCounciliscommittedtobecominganaccreditedLivingWage Foundation Employer.TheLiving Wageis arateofpayperhour,whichisenoughtomakesureworkersandtheirfamiliescanlive free from poverty. • TheCouncilimplementedtheLivingWageFoundationrateofpayinSeptember2016forall employees(excludingapprentices,workplacementsandtraineeships,whichhavebeencreated toenableaccesstotheworkplacetrainingandjobopportunities).Thiswasincreasedfurtherwiththerevisedrateofpay annuallyon1Novemberin each subsequent year.Thisispaidbymeansofa supplementto Council employeeswhose hourlyrateofpayfallsbelowthenationallysetrate. • Thisrate will continue tobereviewedinline with the nationallynegotiatedNJC payaward. • TheCouncilwillencourageandpromoteallemployers,bothdirectlyandthroughtheir subcontractors,topayaLivingWage,andpromotetheLivingWageprincipleswhenthereare opportunitiestoso doin the Borough. 2019/20 Tameside MBC Budget Report

  10. Appendix 18 Pay Policy Statement 2019/20 • TheCouncilstrivestomakeTamesideabetterplaceandisoftheviewthatpaymentofaLiving Wagecanhaveapositiveimpactonthedeliveryofservicesaswellaseconomicandsocial benefits in theBorough. • TheCounciliscommittedtoprovidingbetterqualityvalueformoneyservicesandfeelsthe paymentofthe LivingWage Foundationwill contribute tothisgoal. • 12. Pension Enhancement • TheCouncilhasagreedpoliciesinplaceonhowitwillapplyanydiscretionarypowersithas underPensionsregulations.ItisnotCouncilpolicytoapplytheavailablediscretionstoaward additionalpension toanymembersofthepensionscheme (regulation 31). • 13. Re-employmentof Staff • TheCouncilisunderastatutorydutytoappointonmeritandhastoensurethatitcomplieswith allappropriateemploymentandequalitieslegislation.Theauthoritywillalwaysseektoappoint thebestavailablecandidatetoapostwhohastheskills,knowledge,experience,abilitiesand qualitiesneededforthepost. • InrecentyearssignificantnumbersofindividualshavelefttheCouncilvoluntarilyonenhanced exitpaymentsowingtothesignificantreductioninitsbudget. Theseexitpaymentshave helpedunlocksubstantialreductionsinstaffcostsinthemediumtolongertermandhavehelped inmeetingthechallenge ofreducingthedeficit.However,giventhescaleofthe costs associated withexitpaymentsitisvital thattheyoffervalue formoneytothetaxpayerwho fundsthem. • AsitwouldbereputationallydamagingtotheCouncil tousepublicfundsforemployeestoreceive exitpaymentsandthenquicklyreturnedtopublicsectorroles,theCouncilhasapolicythatany employeewhoreturnstotheTamesidepublicsectororonpublicsectorcontractsoragencywork within12monthsofexitarerequiredtorepaytheirexitpayment.Thisisinlinewithgovernment guidancetoensurethatthetaxpayerisnotundulycompensatinganindividualforlossof employmentonlyforthemtoreturntothepublicsectorafterashortperiodoftimehence gettinga windfall. Employees who have received anenhancedexitpackagecan accept employmentwiththeCouncilbutwheretheydothiswithin12monthsofsigningacompromise agreementtheyarewillbeobliged to repaytheirexitpackage. • IfacandidateisaformeremployeeinreceiptofanLGPSpensionoraredundancypaymentthis willnotrulethemoutfrombeingre-employedbytheCouncil.Clearlywhereaformeremployee lefttheauthorityonredundancytermsthentheoldposthasbeendeletedandtheindividual cannotreturntothepostas itwill notexist. 2019/20 Tameside MBC Budget Report

  11. Appendix 18 Pay Policy Statement 2019/20 • TheCouncilwillalsoapplytheprovisionsoftheStatutoryRedundancyPaymentsModification Orderregardingtherecoveryofredundancypaymentsifthisisrelevantandappropriate. PensionsRegulationsalsohaveprovisionstoreducepensionpaymentsin certaincircumstances to thosewho return toworkwithin the localgovernmentservice. • TheauthoritywillapplytheprovisionsoftheRecoveryofPublicSectorexitpaymentsin accordancewithanyregulationsmadeunderTheEnterpriseAct2016andanyotherapplicable legislation andguidance. • 14. Policy Amendment • TheCouncilmayseek tochangeelements withinthe paypolicyaspartofanynecessary efficiencyrevieworasothercircumstancesdictate. • ThispolicystatementwillbereviewedeachyearandwillbepresentedtofullCouncileachyear forconsiderationinordertoensurethatapolicyisinplacefortheauthoritypriortothestartof eachfinancialyear. 2019/20 Tameside MBC Budget Report

  12. Appendix 18 Pay Policy Statement 2019/20 • 15. PayPolicyReferences • Agency workersdirective 2011 • HuttonFairPayinthePublicSectorFinalReport(March2011) • JointNegotiating CommitteeforLocalAuthority Chief Executives • JointNegotiating CommitteeforChiefOfficersofLocalAuthorities • LocalGovernment(EarlyTerminationofEmployment)(DiscretionaryCompensation) (England and Wales) Regulations 2006 • Local Government Pension Scheme (Benefits, Membership Contributions) Regulations2007 • Localism Act2011 • NationalJointCouncilfor LocalGovernment Services • TamesideBoroughCouncilSchemeofDelegation • TheAccountsandAudit(England)Regulations(2011) • The Equality Act 2010 • TheSecretaryofStateforCLGCodeofRecommendedPracticeforLocalAuthorities onDataTransparency • LocalGovernmentTransparencyCode 2014 • HMTreasuryRecoveryofPublicSectorexitpaymentsconsultationresponse 2019/20 Tameside MBC Budget Report

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