Imagine Co-operative Childcare Heriot-Watt University Childcare Vouchers Scheme Heriot-Watt University, in conjunction with Imagine Co-operative Childcare has introduced a way for staff to meet some of the costs of childcare under which part of their salary can be given up or “sacrificed” in exchange for Childcare Vouchers which are then used to pay for the childcare services that they use. The way it works To participate in this scheme you have to agree to give up or “sacrifice” an agreed amount of your monthly gross salary in exchange for receiving childcare vouchers which have a face value that is equal to the salary that you have “sacrificed”. Within specified limits, this amount is non-taxable and exempt from National Insurance contributions so you are therefore using some of your income tax and NI contributions to meet some of your childcare costs1 and this therefore represents a saving for staff who receive childcare vouchers as part of their total employment package. If you join the scheme you are able to sacrifice whatever amount of your salary that you choose, up to a maximum amount, £243, per month.2 To participate in this scheme you need to enter into an agreement with the University to change your employment terms and conditions. This means that you give up the right to receive your full salary and instead, you and the University agree that you will be entitled to receive a reduced payment of salary plus the agreed value of Childcare Vouchers which is termed a “benefit”. The total value of pay plus benefit that you receive will remain the same. This is known as a “salary sacrifice” arrangement. The University works with an external supplier, Imagine Co-Operative Childcare, to provide and administer the Childcare Vouchers Scheme. For more information about Imagine, visit: www.imagine.coop If you participate in this scheme then on pay day, you will receive your reduced monthly salary along with the specified amount of childcare vouchers deposited in a special account with Imagine Co-operative Childcare. You are then able to access your Imagine account 24/7 via the Internet or via free-phone telephone and to authorise Imagine to make a direct payment to your childcare provider’s bank account. There is no charge to either you or your chosen carer(s) for participating in the scheme.
Paying less Tax and NI can have an impact on certain statutory entitlements. This is covered further on in this Policy and also in the Frequently Asked Questions & Answers section. 2 Amount quoted is correct for the tax year 2006/07 but may change in the future. Author: Kate Graham Date: 21 June 2006
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How much might you save? The amount you will save in tax and national insurance is dependent on how much you decide to give up of your salary and on the rates of tax and national insurance that you pay on your salary. A lower rate tax payer could save more than £900 per year and a higher rate tax payer could save more than £1,000 per year in tax and national insurance savings.3 The University, as your employer, saves Employer’s National Insurance Contributions on whatever amount of your income you decide to “sacrifice” and these savings allow the University to pay Imagine for administering the scheme. To give you an idea, approximate savings outlined below are available from 6 April 2006.3 Annual savings based on monthly childcare costs of | | | £50 £150 £243 If you pay tax at higher rate 246 738 1195 If you pay tax at normal rate 188 565 915 Eligibility This policy applies to all categories of University staff and includes full-time, parttime, permanent and fixed term employees. You must be:
i) ii)
The parent of, or have parental responsibility for the child(ren) in respect of whom the Childcare Vouchers will be used to provide childcare; and Responsible for selecting the individual, organisation or institution that will provide childcare facilities, and ensuring that they are registered or approved.
Eligible children will qualify up to 1st September following their 15th birthday, or, if they are disabled, up to 1st September following their 16th birthday. The “salary sacrifice” arrangement under which you receive Childcare Vouchers as part of the total pay you receive from the University reduces the amount of cash salary you receive. As the minimum wage is calculated on this cash amount, it is crucial that the total value of the Childcare Vouchers you receive under the “salary sacrifice” arrangement does not reduce your hourly rate below that of the minimum wage. Each employee is therefore entitled to “sacrifice” up to the capped amount per month, provided that, after their salary has been reduced, the level of salary is still above minimum wage. This is essential so that you do not lose your entitlement to certain state benefits and is a prerequisite of joining the scheme. Childcare Vouchers can only be used with registered or approved childcare. Any carer or childcare facility that is not registered with the Care Commission in Scotland cannot be paid with Childcare Vouchers so it is important that you confirm that your childcare provider is registered or approved and that they are happy to be paid in this
These amounts have been calculated based on the tax year 2006/07 but may change in the future. In addition, the amount of National Insurance that you save may vary depending on whether or not you belong to one of the University occupational pension schemes. Author: Kate Graham Date: 21 June 2006
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way. There is no charge to your chosen carer(s) for participating in the scheme but if you have any difficulties then please contact Imagine Co-operative Childcare on 0800 458 7929 who will do all they can to help. . Registered and approved childcare includes: Registered childminders, nurseries and play schemes. Out-of-hours clubs on school premises run by a school or local authority. Childcare schemes run by school governing bodies under the ‘extended schools scheme’. Childcare schemes run by approved providers, for example an out-of-school hours scheme or a provider approved under a Ministry of Defence accreditation scheme. In Scotland only, childcare given in the child’s own home by (or introduced through) childcare agencies, including sitter services and nanny agencies, which must be registered (not a relative). Approved foster carers (the care must be for a child who is not the foster carer’s foster child) Procedure for joining the Childcare Vouchers Scheme First read this policy document along with the Question and Answers that follow and make sure that you have made any further personal enquiries necessary to ensure that you fully understand all the implications for your own situation. If you wish to proceed then you should complete and sign the ‘Application for Childcare Vouchers and Agreement to vary terms and conditions of employment’ and return this to Human Resources for approval by the 31st of the month if you wish to join the scheme with effect from the 1st of the following month. If the form and agreement is received later than this date then you will become eligible to join the scheme the month after that. For example, if you submit your form by 31 July then you will join the scheme with effect from 1 August. If your form is received after 31 July then you will join the scheme with effect from 1 September. We will use the information on this form to add you to the scheme. In the month that it takes effect, your gross salary will be reduced by the amount of Childcare Vouchers you have asked for and the Childcare Vouchers will be deposited in your special account with Imagine Co-operative Childcare. Imagine will immediately send you your access details, including your ‘User ID’ and ‘PIN’ and full instructions for accessing and using your Imagine Childcare Vouchers account, both via the Internet and free-phone telephone. Your carer will also receive introductory information for the scheme. You will also receive a letter from Human Resources confirming the change to your terms and conditions of employment and the date at which this change is taking effect. Please note that once you have joined the scheme the amount of salary that you have given up should remain the same each month unless something happens that significantly changes your childcare requirements or employment situation.
Author: Kate Graham Date: 21 June 2006
Examples of such changes might be: your child starts school and no longer needs childcare, your job or hours change, your partner’s job or hours change, you become pregnant4, are made redundant, you leave the University, you are no longer using the same childcare provider. If, as a result of such a change, you need to reduce or increase the amount in childcare vouchers that you receive or come out of the scheme altogether then such changes will need to be notified and agreed between you and the University in writing in order to comply with government legislation. You should therefore complete a ‘Change of Circumstances and Agreement to vary terms and conditions of employment’ form and forward it to your Human Resources Adviser by the 5th of the month if you wish the change to take effect from the 1st of the following month. If the form and agreement is received later than this date then the change will not take effect until the month after that. You will receive a letter from Human Resources confirming this change to your terms and conditions of employment. Please note that if you wish to withdraw from the scheme altogether, then you can do so at any time but you will not be permitted to re-enter the scheme for the remainder of the tax year. The tax year runs from 6 April to 5 April the following year. Impact on other benefits If you join this scheme and enter into a ‘salary sacrifice’ arrangement then entitlement to University benefits - occupational pension, overtime, occupational maternity/ /adoption/paternity pay and occupational sick pay - will continue to be calculated on your ‘notional salary’ i.e. the amount of gross salary you would have received before the amount of Childcare Vouchers is deducted. However, statutory benefits such as Statutory Sick Pay (SSP), Statutory Maternity Pay (SMP), etc., will normally be calculated based on your actual (lower) salary. For further details please see the Questions & Answers section which follows. Leaving the Scheme: If you wish to withdraw from the scheme altogether then you need to notify the University in writing by completing a ‘Change of Circumstances and Agreement to vary terms and conditions of employment’ form and forwarding it to your Human Resources Adviser without delay. Again, this must be submitted by 5th of the month if you wish to withdraw from the scheme with effect from the 1st of the following month. You will receive a letter from Human Resources confirming the change to your terms and conditions of employment. Imagine Co-Operative Childcare can refund unused Childcare Vouchers. However, the Inland Revenue states that refunds must be paid via the payroll and will be subject to tax and National Insurance in the normal way. If your employment with the University comes to an end and you have an outstanding balance in your Imagine… account, you can either retain your account until all of your funds have been used up paying for childcare or you can request a refund through the University payroll. You must apply for this refund prior to leaving the university in order that your P45 details are correct.
Please see the Question & Answer section for details of how participating in this scheme might affect your rate of Statutory Maternity Pay (SMP). Author: Kate Graham Date: 21 June 2006
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Any Questions? On the following pages are answers to the most commonly asked questions. If you have additional questions then please contact the Human Resources Adviser for your School/Institute/Section or contact Imagine Co-operative Childcare on 0800 458 7929 or at vouchers@imagine.coop Further Information To find out if your child carer is registered contact: The Care Commission By phoning 01382 207 200 All childcare in Scotland listed under www.childcarelink.gov.uk is registered care.
Author: Kate Graham Date: 21 June 2006
Frequently Asked Questions and Answers
How much can I save? The amount that an individual can save is directly linked to their level of income, their rates of income tax and rate of National Insurance Contributions. Each employee is entitled to “sacrifice” up to a maximum capped amount of gross salary per month, provided that after their salary has been reduced, the level of salary is still above minimum wage. This is essential in order that you do not lose your entitlement to certain state benefits and is a prerequisite of joining the scheme. See page 2 of this policy document to get an idea of potential savings you may make. If I join this scheme am I restricted in the type of childcare that I choose? Childcare Vouchers can be used to pay for a wide range of childcare provision, but all carers who receive childcare vouchers as payment must be registered with the Care Commission in Scotland. When can I use the Childcare Vouchers that I receive? Most people use the Childcare Vouchers received in one pay period to pay for childcare in the next pay period. For example, Childcare Vouchers received in May could be used after pay day in May to pay your child carer in June. I don’t have regular ongoing childcare requirements; do I still qualify for this scheme? Yes, however, you will still be required to sacrifice a fixed amount from your salary each pay period. These sacrificed earnings will build up in your Imagine... childcare account until such time as you need to pay your childcare provider. For example, you may use a summer holiday play scheme. A small deduction would come from your salary each pay period and would be credited to your Imagine... childcare account. When you need to pay for the play scheme, you simply access your Imagine... childcare account and authorise them to pay an amount that you choose to the provider of your choice. Imagine... will then, on your behalf, make a direct payment to your care provider’s bank account. This can be a very useful way to budget for your childcare as well as gaining a significant financial benefit through income tax and National Insurance Contributions savings. How does my carer get paid? You access your Imagine… childcare account via the Internet or telephone and authorise Imagine... to make a direct payment directly to your nominated childcare provider via bank transfer. When you initially join the scheme, you will be able to enter all of your carer’s details so that Imagine… are able to check that they are registered or approved as required and so that they can subsequently make payments to them upon your request. There is no charge to you or your carer for each transaction. You are able to set up new carers directly with Imagine… via phone or email as and when your childcare provider changes. Why does my carer have to register with Imagine? In order for Imagine to pay your carer we need to have their bank details. We are also required to check that they are registered to look after children with the Care Commission in Scotland. All carers are paid by BACS transfer direct into their bank account.
Author: Kate Graham Date: 21 June 2006
Can I pay more than one carer through the Imagine system? Yes. Providing that all of the forms of childcare you employ qualify as registered or approved under the legislation then you can use as many childcare providers as you wish. This gives you the flexibility you need as the child/children get older and you have different childcare requirements. It can also be a useful way to budget for your childcare costs throughout the year. For example, if you only require childcare during holiday periods, you can set aside an amount of childcare Vouchers from your salary and save up until you need to pay your childcare provider. You then simply access your account at this stage and authorise Imagine… to pay your childcare provider directly. Can I use this arrangement to receive Childcare Vouchers for more than one child? Yes. Under the ‘salary sacrifice’ arrangement you can be paid in Childcare Vouchers for as many qualifying children as you wish. However, the total benefit is capped at £243 per month5 irrespective of the number of the children. Could my partner also enter into this scheme and make savings? Yes, the ‘salary sacrifice’ scheme and cap of £243 5 applies to individual earners, so if your partner works for the University or another organisation that offers a salary sacrifice scheme, then they can also save on the cost of your childcare – potentially doubling your savings. If your partner’s employer does not currently have a scheme like this in place and you would be interested in Imagine Co-operative Childcare approaching them directly, please contact Imagine... on the details below and they will be pleased to offer any assistance they can. Telephone: 0800 458 7929 Email: vouchers@imagine.coop Can I recover the outstanding balance in my Imagine... account should my childcare requirements cease? Yes, however, any monies in your account will be subject to income tax and National Insurance Contributions if you are no longer using it for the payment of eligible childcare. Therefore all refunds will need to come through the University payroll at which point all relevant Income Tax and National Insurance Contributions will be collected. Imagine Co-operative Childcare cannot refund you directly. If you are leaving the university and have an outstanding balance in your Imagine... account, you can either retain your account until all of your funds have been used up paying for childcare or you can request for a refund through payroll. You must apply for this refund prior to leaving the university in order that your P45 details are correct. Do I have to declare that I am receiving Childcare Vouchers on my tax return? The tax and National Insurance savings gained through participation in a Childcare Vouchers Scheme have been introduced by the government and there is therefore a dispensation. So long as the capped amount per month is not exceeded you do not have to declare it on your tax return. I receive tax credits – What is the effect on these if I decide to join the scheme? Child Tax Credits and Working Tax Credits will be affected in most cases should you decide to participate in a salary sacrifice scheme. However, it is difficult to give you a clear picture as to the precise effects that may occur as tax credits are very different for each individual’s circumstances.
5
Amount quoted is correct for the tax year 2006/07 but may change in the future.
Author: Kate Graham Date: 21 June 2006
The tax credit office are currently developing a calculator which will enable you to work out if you would be better off staying with your current tax credits or joining the salary sacrifice scheme for Imagine... childcare Vouchers. As soon as this is made available, Imagine will provide the necessary link so that you are able to check for your own personal circumstances. In the meantime, we would advise that you contact the tax credit office and request that they perform some comparative calculations, so that you can see clearly which route will be most beneficial for your own circumstances. Tax Credits Help Line: 0845 300 3900 (Great Britain) http://www.inlandrevenue.gov.uk/specialist/salary_sacrifice.htm https://www.taxcredits.inlandrevenue.gov.uk/Qualify/WhatAreTaxCredits.aspx Will my other benefits (e.g. overtime, pension, bonuses etc.) be affected if I decide to join the Imagine... scheme? Your University benefits will be based on your ‘notional salary’ which is the amount of salary you would have received had you not entered into an agreement with the University to reduce your salary as part of this scheme, so there will be no negative impact on these should you decide to join the Childcare Vouchers Scheme. Pension Entering into a salary sacrifice scheme to receive Childcare Vouchers will have no effect on your occupational pension as both employee and employer contributions will continue to be based on your ‘notional salary’. The State Pension consists of two pension elements. The first is the Basic Element. By entering into a salary sacrifice scheme for Childcare Vouchers, you must earn at least minimum wage in cash earnings to participate. This automatically preserves your entitlement to the Basic Element of the State Pension. The Second element of the State Pension is an adjusted amount depending on what you earn above minimum wage, known as the Additional State Pension or the State Second Pension. By entering into a salary sacrifice arrangement to receive Childcare Vouchers, your contributions towards the State Second Pension will be decreased for the duration of the time that you participate in the salary sacrifice due to the fact that your salary is seen to reduce for this period. Childcare Vouchers are treated as a pension-able element of salary for the State Pension. However if you are a member of one of the University occupational pension schemes then you will be contracted out of the State Second Pension and receiving Childcare Vouchers will have no effect. http://www.thepensionservice.gov.uk/ Sick Pay If you are absent from work due to ill health then your occupational sick pay benefits will not be affected. Statutory Sick Pay (SSP) should also not be affected by your participating in a salary sacrifice scheme. This is because once you earn above the lower earnings limit then the rate of SSP is a fixed amount. If you earn less than the lower earnings limit you would not be eligible to join the Childcare Vouchers Scheme. Maternity Pay and Adoption Pay If you are going on maternity leave/adoption leave then your occupational maternity/adoption pay benefits will not be affected. However, Statutory Maternity Pay (SMP) and Statutory Adoption Pay (SAP) can be reduced by your participation in a salary sacrifice scheme. This is because SMP/SAP is calculated on the amount of Author: Kate Graham Date: 21 June 2006
average weekly earnings during the 8-week period, fifteen weeks prior to the expected date of childbirth. A “salary sacrifice” arrangement will reduce the amount of salary that is liable to National Insurance contributions. Therefore any “salary sacrifice” entered into during this eight week period will reduce entitlement to SMP or SAP. If you are pregnant and will have a period of maternity leave you are therefore advised to think very carefully as to whether you should take Childcare Vouchers during this period and to seek advice as necessary on your own personal situation. If you are receiving SMP/SAP and/or occupational maternity/adoption pay at present you should contact Imagine to find out whether you are receiving sufficient income to enter into a “salary sacrifice” arrangement and receive Childcare Vouchers. Paternity Pay If you are going on Paternity leave then your occupational paternity pay benefits will not be affected. Statutory Paternity Pay (SPP) should also not be affected by entering into a ‘salary sacrifice’ arrangement. This is because you will only be entitled to £108.85 per week6 (or 90% of your salary if it is lower) for the 2 weeks maximum paternity leave you can take, and those entitled to less than £108.85 per week SPP7 would be close to receiving the minimum wage and would therefore probably not qualify for the Childcare Vouchers scheme. Therefore, the level of SPP received by those who do qualify for the Childcare Vouchers scheme is unlikely to be affected. Note that SPP also applies to adoptive partners. Redundancy Pay If you are made redundant then any University redundancy package will not be affected; it will be based on your notional salary. Statutory Redundancy Pay (SRP) can be reduced by you participating in a salary sacrifice scheme. This is because SRP is calculated using the actual cash pay you receive (i.e. earnings that are subject to National Insurance Contributions). By participating in a salary sacrifice scheme, you are effectively reducing your cash pay, therefore should you be made redundant, the amount of SRP you will be entitled to could be less than you were entitled to prior to joining the salary sacrifice scheme. Other State Benefits If you are currently in receipt of other state benefits not covered in this information, then you should carefully consider what the effect on them may be, prior to opting into a ‘salary sacrifice’ scheme arrangement. Entering into a ‘salary sacrifice’ scheme for childcare vouchers will reduce your level of salary by the amount of childcare vouchers you have opted for. This means that for state benefit calculation purposes, whatever amount you have sacrificed will not be included as salary or earnings. The effect may be to reduce your entitlement to the state benefits in question. This is normally not a significant reduction, but may vary depending on your personal circumstances, so we do recommend that if you are in any doubt that you should check before proceeding. For further information on other state benefits, you may find the link below useful. http://www.dwp.gov.uk/
6
Amount quoted is correct for the tax year 2006/07 but may change in the future.
Author: Kate Graham Date: 21 June 2006
APPLICATION FOR CHILDCARE VOUCHERS AND AGREEMENT TO VARY TERMS AND CONDITIONS OF EMPLOYMENT Personal Details
Surname ………………………………………………. Forename …………………………………… Job Title ……………………………………………………………………………….......................... School/Section …………………………………………………………………………………………. Home Address: ………………………………………………………………………………………… ………………………………………………………………………………. Postcode: ………………. National Insurance Number: …………………………………………………………. (On your pay slip) Employee Personal Number …………………………………………………………. (On your pay slip)
Please list here all the children for whom you pay/intend to pay for childcare with Imagine Childcare Vouchers: Name of Child Date of birth
1. ……………………………………………………………………………………….. 2. ……………………………………………………………………………………….. 3. ………………………………………………………………………………………..
Childcare Details
Please enter the details of the childcare provider you would like to pay with Childcare Vouchers. This provider MUST be registered with the Care Commission in Scotland. Childcare Provider Name ……………………………………………………………… Contact Name …………………………………………………………………………. Address ………………………………………………………………………………… ………………………………………………………………… Post Code …………… Telephone ……………………………………………………………………………… Email …………………………………………………………………………………... Care commission Registration Number ……………………………………………….. Required amount of monthly Childcare Vouchers (Must not exceed £243 per month7) Total £ ………………………..
7
Amount quoted is correct for the tax year 2006/07 but may change in the future.
Author: Kate Graham Date: 21 June 2006
Agreement to vary terms and conditions of employment between the employee named above and Heriot-Watt University This amendment to your terms and conditions means that you agree for Heriot Watt University to deduct the amount you have specified from your gross salary and place an order for this amount in Childcare Vouchers with Imagine Co-operative Childcare. The value of the amount of salary that you are setting aside and therefore the value of your Childcare Vouchers should remain the same each month. The employee and Heriot-Watt University both acknowledge that this Agreement constitutes a notice of a variation to the terms and conditions of employment in accordance with the provisions of section 4 of the Employment Rights Act of 1996. This variation to the terms of employment will commence on the first available day after receipt of the application for Childcare Vouchers, taking into account procedures such as Payroll cut-off dates, etc., and shall run until such time as the employee notifies the University that they wish to either amend the amount of Childcare Vouchers that they receive, or that they wish to leave the scheme altogether. As a consequence of entering into this agreement, the employee will cease to be entitled to receive their Original Monthly Salary. Instead the employee will be entitled to receive the Adjusted Monthly Salary along with Childcare Vouchers to the value that is specified on page 1 of this form. Terms of Reference The Original Monthly Salary refers to the monthly salary of the employee on the assumption that the employee’s terms and conditions had not been varied by this agreement or any similar agreement. The Adjusted Monthly Salary refers to the monthly salary received by the employee once their terms have been varied and the amount of salary set aside has been deducted from their original salary. Declaration I confirm that: I am the parent of the child or I have parental responsibility for the child The child meets the eligibility criteria detailed in Heriot-Watt University’s Childcare Vouchers Scheme I am responsible for selecting the individual, organization or institution that will provide childcare facilities, and ensuring that they are registered or approved I have read and understood the Heriot-Watt University’s Childcare Vouchers Scheme and have read and understood this Agreement to vary the terms and conditions of employment between myself and Heriot-Watt University. I undertake to notify the University in writing: o If there are any changes in my personal circumstances or childcare arrangements that would cause me to cease being entitled to this scheme. o If I need to change the amount of Childcare Vouchers that I receive due to a significant change in my childcare requirements or employment situation or because I have decided to opt out of the scheme altogether.
Signature ……………………………………… Date ………………………………… PLEASE NOTE: By signing this form you are consenting to vary your terms and conditions of employment and you will cease to be entitled to your original salary. Depending on your personal circumstances, there may be adverse affects from using salary sacrifice, so before you sign, please read carefully this Agreement to vary your terms and conditions as well as Heriot-Watt University’s policy on Childcare Vouchers including the ‘Frequently asked Questions & Answers’ and make sure that you make any further personal enquiries necessary to ensure that you fully understand all the implications for your own situation.
Author: Kate Graham Date: 21 June 2006
CHANGE OF CIRCUMSTANCES AND AGREEMENT TO VARY TERMS AND CONDITIONS OF EMPLOYMENT Personal Details
Surname ………………………………………………. Forename …………………………………… Job Title ……………………………………………………………………………….......................... School/Section …………………………………………………………………………………………. Home Address: ………………………………………………………………………………………… ………………………………………………………………………………. Postcode: ………………. National Insurance Number: …………………………………………………………. (On your pay slip) Employee Personal Number …………………………………………………………. (On your pay slip)
Please complete the details in either table 1 or 2 as applies to your situation: TABLE 1 CHANGE TO AMOUNT OF CHILDCARE VOUCHERS/CHILDCARE PROVIDER The amount of monthly Childcare Vouchers that I require has changed Existing amount of monthly Childcare Vouchers New required amount of monthly Childcare Vouchers Total £ ……….. Total £ ………..
Agreement to vary terms and conditions of employment between the employee named above and HeriotWatt
If your request is accepted by Heriot Watt University, it is understood that this constitutes a further contractual change to your terms and conditions of employment. You will cease to be entitled to your current salary and current amount of Childcare Vouchers. Instead your remuneration package will be restructured in line with this request. Declaration I have read and understood the Heriot-Watt University Childcare Vouchers Scheme and I agree to these changes being implemented by my employer. I undertake to notify the company in writing if there are any further changes in my personal circumstances or childcare arrangements that would cause me to cease being entitled to this scheme, or, if I need to change the Childcare Vouchers amount I receive due to a significant change in my childcare requirements or employment situation, or, because I have decided to opt out of the scheme altogether.
Signature ……………………………………… Date …………………………………
Author: Kate Graham Date: 21 June 2006
TABLE 2 REQUEST TO BE REMOVED FROM THE CHILDCARE VOUCHERS SCHEME Agreement to vary terms and conditions of employment between the employee named above and HeriotWatt
Once your request is accepted by Heriot Watt University, it is understood that this constitutes a further contractual change to your terms and conditions of employment. As a consequence, you will cease to be entitled to receive your Adjusted Monthly Salary and current amount of Childcare Vouchers. Instead your remuneration package will be restructured in line with this request and you will once again be entitled to receive your Original Monthly Salary.
Terms of Reference The Original Monthly Salary refers to the monthly salary of the employee on the assumption that the employee’s terms and conditions had not been varied by an agreement to sacrifice part of their salary by this agreement or any similar agreement. The Adjusted Monthly Salary refers to the monthly salary received by the employee once their terms have been varied and the amount of salary set aside has been deducted from their original salary.
Declaration
I hereby request that I be removed from the Childcare Vouchers scheme. I have read and understood the HeriotWatt University Childcare Vouchers Scheme and I have read and understood this agreement to vary the terms and conditions of employment between myself and Heriot-Watt University. Signature ……………………………………… Date …………………………………
Author: Kate Graham Date: 21 June 2006