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HART DISTRICT COUNCIL PAY _ GRADING AGREEMENT

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					                           PAY AND REWARD SCHEME

                                    FOR

                            HART DISTRICT COUNCIL


                                    2008




Pay & Reward Scheme 2008                            Page 1 of 44
HART DISTRICT COUNCIL PAY & REWARD SCHEME 2008


1.0     INTRODUCTION AND DRIVERS

        1.1     Legal Background
                NJC 2004-07 National Pay Award Agreement: Implementation
                Agreement
                Equal Pay Audit
        1.2     Corporate
                Council’s mission statement and values/improvement
                Use of Resources
        1.3     Equality
                Equality and Diversity Commitment
                Equal Pay Policy

2.0     NJC IMPLEMENTATION AGREEMENT

        2.1     Requirements of Pay & Grading Review
        2.2     NJC Guidance
        2.3     Union Guidance

3.0     HART DISTRICT COUNCIL: HISTORY OF PAY & GRADING
        CURRENT STRUCTURE

4.0     PAY & GRADING REVIEW

        4.1     Methodology
        4.2     Purpose and Objectives
        4.3     Joint Working
        4.4     Summary of Outcomes of Current Situation Analysis
        4.5     Identification of Requirements of New Pay & Grading System to:
                (a) address corporate, legal and equality needs
                (b) meet jointly agreed objectives
                (c) address deficiencies identified through current situation
                    analysis and retain positive aspects of current system

5.0     THE NEW PAY & REWARD SCHEME

        5.1     Grading Structure
                5.1.1 Number and Length of Grades
                5.1.2 Job Evaluation Scheme
                5.1.3 Assimilation to New Structure
                5.1.4 Protection
                5.1.5 Additional Hours Working
                5.1.6 Progression
                5.1.7 Appeal Process related to Assimilation




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        5.2     Pay Policy and Procedures
                5.2.1 Pay and Reward Policy
                5.2.2 Pay Procedures
                5.2.3 Additional Elements of Pay
                5.2.4 Performance Reward

        5.3     Single Status
                5.3.1 Leisure Services
                5.3.2 Depot

        5.4     Equal Pay Audit
                5.4.1 Equal Pay Audit Report
                5.4.2 Back Pay on equal pay claims

        5.5     Implementation
                5.5.1 Timetable
                5.5.2 Methodology
                5.5.3 Communications Strategy
                5.5.4 Equality Impact Assessment
                5.5.5 Costs
                5.5.6 Cost Savings or Productivity Improvements to Offset the
                      Cost of Implementation

6.0     REVIEW

        6.1     Review of Pay and Reward Policy
        6.2     Review of Additions to Basic Pay
        6.3     Review of Whole Pay and Reward Scheme




Pay & Reward Scheme 2008                                              Page 3 of 44
1.0     INTRODUCTION AND DRIVERS

1.1     Legal Background

        The National Joint Council for Local Government Services (NJC), as
        part of the 2004 National Pay Award Agreement, required all Councils
        who had not already done so to carry out a Pay and Grading Review.

        The Implementation Agreement detailed the requirements and
        timescales for undertaking this Review. These are shown in 2.0 below.
        Implementation was required to be completed by 31March 2007.

        The drivers for carrying out this Review and for completing its
        implementation by an absolute deadline of 31March 2007 are included
        in the following extracts from the Joint Guidance:

        “The NJC states that local pay and grading reviews are central to the
        objective of modernising pay structures and removing discrimination in
        pay and conditions of service in local authorities.

        The 1997 National Agreement for local authorities introduced the
        principle of Single Status…..However, progress in implementing Single
        Status through the conduct of local pay and grading reviews has been
        slow and patchy. The Local Government Pay Commission, in its report
        of October 2003, therefore recommended:

        Every local authority which has not yet done so should undertake a pay
        audit (pay and grading review) and develop an action plan for
        implementing a pay structure embodying the equal value principles
        required by the Single Status Agreement with objectives, a staged
        timetable and deadlines….”

        Staff at Hart District Council have contracts which incorporate NJC
        terms and conditions; there is therefore a legal requirement to comply.

        The NJC Agreement requires an Equal Pay Audit to be carried out
        where this has not already occurred. This is additionally a statutory
        legal requirement to comply with the Equal Pay Act and the Sex
        Discrimination Acts (plus amendments).

1.2     Corporate

        The Council is committed to striving for excellence in all it chooses to
        do. In order to build the capacity we need to deliver service
        improvements to the level of excellence the Council requires, a
        motivated and high performing workforce is key – a pay and reward
        scheme which reflects the corporate values of clarity, transparency,
        honesty and consistency is a significant driver for this.



Pay & Reward Scheme 2008                                                 Page 4 of 44
        Section 3.0 below shows that no modernisation or review of the
        Council’s Pay and Reward Scheme has taken place for the last 16
        years; hence there is no evidence to show that the current system
        meets the corporate requirement to build the capacity we need to
        deliver corporate improvements or that it reflects corporate values.

1.3     Equality

        The Council has initiated and follows an Equality and Diversity
        Commitment to ensure equality of opportunity and dignity at work for
        all, regardless of gender, race, origin, age and disability. Its Corporate
        Equalities Group (which includes Elected Members and a Corporate
        Director) is the action arm for mainstreaming this Commitment through
        all of the Council’s activities.

        The Council has an Equal Opportunities Policy which is regularly
        reviewed in consultation with UNISON.

        The Council has further demonstrated its commitment to Equality
        through its Equal Pay Policy which has been developed in consultation
        with UNISON. This Policy is based on the Equal Opportunities
        Commission Model.


NJC IMPLEMENTATION AGREEMENT

2.1     Requirements of Pay & Grading Review

        These are stated within the 2004 NJC Agreement:

               A pay and grading structure
               Details of the approach taken to determining the relative sizes of
                the jobs included (job evaluation)
               Proposals for assimilation for all current employees
               Proposals for protection
               Proposals for premium rates
               Proposals for progression
               Proposals for back pay
               Proposals for appeal against assimilation proposals
               An Equality Impact Assessment (or Equal Pay Audit where local
                pay reviews have been completed without such an audit)
               Proposals for bonus and other performance payments
               Proposals for any cost savings or productivity improvements
                required to offset the cost of implementation
               A timetable for implementation completion by 31 March 2007
               Resources necessary for the pay review and their estimated
                cost.




Pay & Reward Scheme 2008                                                  Page 5 of 44
2.2     NJC Guidance

        The 2004 Agreement was published in August 2004. In June 2005 the
        NJC issued Joint Guidance on Pay & Grading Reviews. This guidance
        included:

               Guidance on Pay & Grading Reviews, covering the essential
                features of a review including the job evaluation process, the
                development of pay and grading structures, and issues around
                implementation.
               Guidance on Equality Impact Assessments, how to conduct
                them and putting the process into a local government context,
                particularly with regard to the Equality Standard for Local
                Government.
               Guidance on Equal Pay Audits, highlighting existing advice from
                the Equal Opportunities Commission and putting this into a local
                government context.

2.3     Union Guidance

        In September 2005, the Trade Unions published their own guidance to
        local government grading and pay, a clear and helpful publication
        which Unison at Hart District Council has shared with management as
        part of joint working. This publication expands on the Joint Guidance,
        giving clear examples of all options for the various elements included in
        the Review and setting out the guiding principles applicable to
        developing pay and grading structures as:

               Single status
               Equal pay and equality
               Openness and jointness

        There are separate sections on developing grading structures,
        additional elements of pay, equal pay, implementation steps and an
        Appendix with legislation background.


3.0     HART DISTRICT COUNCIL: HISTORY OF PAY & GRADING
        CURRENT STRUCTURE

3.1     In 1990 Hart District Council undertook an extensive project to set up a
        grading structure for the first time, incorporating job evaluation, and
        simultaneously developed its first appraisal system in order to
        introduce the link between performance and progression.

        UNISON and Elected Members were engaged in this project and its
        launch and implementation seem to have been welcomed as a
        significant step forward for the Council.




Pay & Reward Scheme 2008                                                Page 6 of 44
        There is no evidence, either explicit or anecdotal, that the system
        which emerged from the project has ever been reviewed or updated.

3.2     Any system, no matter how effective or relevant at its point of initiation,
        is subject to degeneration over time and, without review, there is no
        evidence that this system is suitable for the Hart District Council of
        today or the future.

3.3     The Hay Job Evaluation Scheme has been subject to review and
        structured improvement over the last 2 years and training has been
        given to a range of employees in carrying out evaluations. A further
        improvement need was identified during the course of this review: the
        additional elements of Hay related to physical effort and environmental
        factors were omitted from the training session and therefore not
        incorporated in evaluations from early 2004 (however they were used
        during the single status process for the Depot which was completed in
        December 2003). These extra factors have been trained in and
        applied to relevant positions and are now a regular element in
        evaluations. However, the grading structure itself has not been
        reviewed and a significant proportion of “older” jobs have not had their
        job descriptions reviewed for several years

4.0     PAY & GRADING REVIEW


4.1     Methodology

        The Review was conducted within a Project Management framework.

        4.1.1 Scope

        The scope of the Project was set out to meet the requirements of the
        2004 NJC Agreement as set out in 2.1 above.

        4.1.2 Resources

        A skilled and experienced Project Manager was appointed to lead the
        project and financial resources allocated by the Council to carry out the
        Project.

        4.1.3 Approach

        The Project Approach was defined as partnership working between
        management and trade unions.

        4.1.4 Current Situation Analysis

        The starting point of the Review was defined as analysing the current
        position. This would form a clear view of where the Council stood now
        in terms of whether the current pay system was (a) fit for purpose in


Pay & Reward Scheme 2008                                                  Page 7 of 44
        meeting current corporate objectives, (b) whether it met the objectives
        of the requirements of a pay system as set out in 2.1 above and the
        objectives agreed with Unison, (c) clear with regard to the payment of
        all allowances, supplements and premium payments, (d) free of
        anomalies.

        4.1.5 Job Evaluation Scheme

        A decision was required on whether the Council had a Job Evaluation
        Scheme which met the project objectives requirements.

        4.1.6 Equal Pay Audit

        An Equal Pay Audit was required to be carried out as part of the
        Project.

        4.1.7 Project Management Structure

        A structure was set up comprising a Project Manager, a Project Board
        and a Project Team. An important element within this structure was a
        Consultation Group comprising representatives from Human
        Resources, Finance, Payroll, UNISON and the Heads of Service Team
        (HoST).

4.2     Purpose and Objectives

        The purpose and objectives of the Review were jointly developed with
        Unison and were agreed as follows:

           Sound system – with robust data able to be audited

           Consistently applied to ensure fair pay

           Incorporating a clear system of rationale, authorisation routes,
            written policies/procedures

           Equal pay and opportunities

           Compliance with legislation

           Take into consideration market factors using a benchmarking
            system

           Influenced by individual and corporate performance

           Containable within the Council’s resources

4.3     Joint Working




Pay & Reward Scheme 2008                                                 Page 8 of 44
          Hart District Council has one recognised Trade Union, UNISON.
          UNISON and management have regular meetings to discuss and
          resolve staff issues. Partnership working is therefore embedded into
          the culture of Hart.

          From the outset, the local Branch Executive has been working with
          management on the Pay & Grading Review. One outcome which
          demonstrates this approach is that UNISON and Management agreed
          on the Purpose and Objectives for the Review, as set out in 4.2 above,
          prior to the publication of the NJC Joint Guidance on Pay & Grading
          Reviews in June 2005. (Examination of the local and national
          objectives shows a positive reconciliation).

          The Communication and Consultation Strategies for the Review were
          developed jointly and UNISON participated in the Consultation Group.
          All communications with staff were developed jointly.

          In December 2005, the Regional Staff Side Secretary attended a
          meeting with members of the Project Team and local UNISON, and
          confirmed that we were meeting the requirements of the 2004
          Agreement in terms of engagement.

          When the project reached the stage of designing and developing a pay
          system (driven by the objectives and the outcomes of the Current
          Situation Analysis) and of the design of the implementation stage, then
          the joint working between management and UNISON gained in pace
          and content and a representative from the Regional office of UNISON,
          joined in this stage of the project.

          The Pay and Reward Policy, the Pay Procedures, the Grading
          Structure and Single Status (Leisure) have all been developed and
          agreed jointly.

          This joint working has been the key element in reaching the Council’s
          new Pay & Grading Scheme.

4.4       Summary of Outcomes of Current Situation Analysis

         Hart has a grading structure based on NJC Spinal Column Points.
         It has an established Job Evaluation System, the Hay System.
         Pay and Grading broadly follows the Green Book.
         The Review covered employees up to and including Heads of Service.
          Corporate Directors and the Chief Executive are covered by JNC
          Terms and Conditions and are therefore outside of the scope of this
          Review.
         Where the Green Book allows for local determination, there is no
          documented evidence that this has taken place,
         There is minimal documentation on pay policies, procedures and
          protocols at Hart District Council.



Pay & Reward Scheme 2008                                                 Page 9 of 44
         Grade lengths range from 5 to 15 spinal column points. They all
          overlap – they overlap by unequal amounts. This grading structure
          was established in 1991 and has not been reviewed since this time.
         There is a lack of transparency and understanding about systems of
          payment and the development of differing practices in different service
          areas and the appearance of anomalies.
         Progression within a grade has generally been on a time-served basis
          at one increment per year.
         There is insufficient documentation on the rationale behind increments
          of more than one spinal column point where this has been applied.
         Starting points on each grade are subject to negotiation on
          appointment with the appointing manager.
         There are varying ranges of Career Grades with no written criteria for
          progression.
         The Single Status Agreement covering the Depot resulted in sub
          grades within grades.
         Shift allowances are based on differing formats, the origin of which is
          not clear.
         There is no standby or callout scheme
         There is only one fringe benefit – the subsidised 365 card membership.
         There are examples of staff (in addition to those in receipt of market
          supplements) being paid at levels beyond their substantive Grade.
         31% of staff are being paid at the top of their Grades.
         There are no clear procedures detailing the allocation of the four types
          of car allowances being paid within the Council.
         There are anomalies when correlating the actual mileage undertaken
          with the type of car allowance allocated.
         There is no written procedure governing the allocation of market
          supplements.
         There has been no recorded review of market supplements once
          allocated
         There is no recorded system of review, although the need for review
          has been written into recent allocations.
         Some market supplements have been paid in the form of non-
          consolidated lump sums, some by the addition of increments within
          grades (consolidated), and some by added increments beyond the
          substantive grades (consolidated).
         Supplements that have been applied do not always cover the whole job
          family concerned or apply to existing staff.
         Heads of Service have a modernised progression scheme based on
          performance. Those with unsatisfactory/poor performance will attract
          no increment. Those with “satisfactory” progression receive an
          increment of £500. However, this is less than the increment Grade 9
          and for those progressing at “satisfactory” level every year, it would
          take 10 years to reach top of Grade. Those with performance
          commensurate with a “good” authority would receive an increment of
          £1000.

4.5       Identification of Requirements of New Pay & Grading System to:


Pay & Reward Scheme 2008                                                Page 10 of 44
                (a) address corporate, legal and equality needs
                (b) meet jointly agreed objectives
                (c) address deficiencies identified through current situation
                analysis and retain positive aspects of current system

        4.5.1 Requirements to address corporate, legal and equality needs

        The new system has a corporate requirement to: reflect the Council’s
        performance improvement culture; to reflect the statement “excellent in
        all we choose to do”; to reflect the values expressed in the Corporate
        Plan – trust, excellence, integrity, clarity and respect.

        The legal requirements are to meet the criteria set out in the 2004
        National Pay Award Agreement; to meet the requirements of equality
        legislation; to comply with the Data Protection Act.

        The equality requirements are to establish a structure of equity and
        fairness, based upon sound equal pay principles; to regularly
        undertake Equal Pay Audits with action taken where necessary to
        reflect any imbalance; to undertake an Equality Impact Assessment of
        the new pay scheme.




Pay & Reward Scheme 2008                                                 Page 11 of 44
4.5.2 Requirements to meet jointly agreed objectives
Objective                                 System to meet this objective        Key criteria of system
1. A sound system – with robust data      Grading Structure                    Written criteria for starting point within grade and
able to be audited                                                             progression through grade. Audit trail starting
                                                                               with contract and progressions in writing to payroll
2. Consistently applied to ensure fair      Job Evaluation Scheme              Every post on Establishment List within Grading
pay                                                                            Structure to be evaluated; any changes to Job
                                                                               Description/Person Specification to initiate
                                                                               reviewed evaluation
3. Incorporating a clear system of          Pay Policy                         Pay Policy to be in writing and subject to review
rationale, authorisation routes, written    Pay Procedures                     Pay Procedures to apply the Policy to be in writing
policies and procedures                                                        with clear criteria and authorisation routes and
                                                                               subject to review
4. Equal pay and opportunities              Equal Pay Policy                   Equal Pay Policy to be based on Equal
                                            Equal Pay Audit                    Opportunities Commission Model
                                                                               Equal Pay Audit to be carried out at regular
                                                                               intervals to validate application of policy
5. Compliance with legislation              Review                             Review of whole pay system and any of its
                                                                               component parts to be at prescribed intervals –
                                                                               also to be reviewed on changes to legislation
6. Taking into consideration market         Review of published                Published benchmarking data to be used for basis
factors using a benchmarking system         benchmarking data                  of market supplements
7. Influenced by individual and corporate   Pay progression                    Pay progression subject to satisfactory
performance                                 Career grade progression           performance as validated by annual Performance
                                                                               and Development Review Scheme
                                                                               Progression through career grades in accordance
                                                                               with criteria to be defined at start of career grade
8. Containable within the Council’s         Budget                             Pay system affordability to be demonstrated by
resources                                                                      Council’s budget setting process




Pay & Reward Scheme Vers 5                                          Page 12 of 44
                4.5.3 Requirements to address deficiencies identified through current
                situation analysis and retain positive aspects of current system

                          Shorter grades
                          No overlap of grades
                          Link between pay and performance for incremental progression rather
                           than time-served
                          Career Grades to have clear definitions of progression criteria
                          Normal entry point to each grade to be at starting point to grade
                          All additional elements of pay, including allowances and premium
                           payments, to have clear written criteria and authorisation procedures
                          Additional elements of pay to be separate from grading structure
                          All allocations of and amounts of additional elements of pay to be
                           subject to review
                          All allocations of pay and their review to be documented
                          Review all existing allocations of pay beyond grading structure to
                           resolve anomalies
                          Retain a grading structure which is based on national spinal column
                           points
                          Retain and continue to improve the Job Evaluation System
               
5.0     THE NEW PAY & REWARD SCHEME

5.1     Grading Structure

        5.1.1 Number and Length of Grades

        In order to meet the objectives of clarity and mitigating the risk of equal pay issues,
        the grades in the new structure are shorter and do not have permanent overlapping.

        Under the new structure, which is attached as Appendix 1, there will be 11 grades
        up to SCP 49 plus a Head of Service Grade. The Head of Service Grade
        comprises 5 steps, with progression through the steps driven by performance.

        5.1.2 Job Evaluation Scheme

        In agreement with UNISON, the Hay Evaluation Scheme will continue to be used.
        This scheme meets the requirements of the 2004 Agreement and further
        information provided by Hay, confirms its compliance with equality requirements to
        award equal pay to work of equal value.

        The application of the Scheme will be subject to continuous improvement to ensure
        that it is applied fairly and consistently.

        5.1.3 Assimilation to the New Structure

        Current posts will be assimilated to the new structure in accordance with the Job
        Evaluation points.

        When moving from a system with longer grades to a system with shorter grades,
        there will necessarily be postholders who will be at a lower point, at the same point
        or at a higher point than they are under the current grading structure.


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        As a means of phasing in the new structure, where the assimilation results in a
        reduction from the current pay point, we will apply a phased protection scheme;
        where the assimilation results in a growth from the current pay point then a purely
        temporary overlapping of grades will be used. In both circumstances the phasing
        will be eliminated over time so that equal pay for work of equal value is assured.

        In designing the new grading structure, consideration has been given to minimising
        where practicable any negative impact on employees as a result of the assimilation.
        Both management and UNISON are keen to ensure that the new scheme will be a
        motivating tool and as such have strived wherever practicable to ensure that the
        highest point of the new grades is no lower than that of the old structure. At the
        same time, the guiding principles of fairness, equality and clarity, based on robust
        data and rationale, have not been compromised.

        During the process of the Pay & Grading Review, Job Evaluations were carried out
        where there had not been clear or recent records, in order that all jobs within the
        Council be fairly evaluated. The Council therefore has a clear record of the
        evaluation of each post.

        In developing the new structure, every effort has been made to ensure fairness for
        all. Existing employees will therefore assimilate at their current spinal column point.
        However, for new appointments, it has been agreed that the normal entry point to a
        grade will be at the starting point to the new grade.

        5.1.4 Protection

        Where an employee finds that he/she on assimilation will be below that on the
        current grade, then a protection system will apply. This protection will apply to all
        those who find themselves in this position at the date of assimilation. In order that
        this protection in itself does not become the basis of an anomaly or equal pay issue,
        this protection period is subject to a maximum of 3 years and in each case will be
        subject to a clear analysis to document the reason for protection and that it is
        applied in accordance with the principles of Equal Pay.

        During this period, as with the current protection scheme for redeployment, the level
        of pay will be phased down until it reaches the substantive grade. National Pay
        Awards will still apply during the protection period.

        In summary, the factors governing the application of protection will be:

           The protection will be for a limited period of time
           Protection will be phased out over this period
           Protection will not be applied where the origin of the anomaly was discrimination
            on the grounds of gender
           The protection arrangements have been agreed jointly with UNISON
           The application of protection will be discussed with the employees concerned
           The group of employees entitled to pay protection will be restricted to those
            employed as at the date of assimilation

        5.1.5 Additional Hours Working (Overtime)

        All payment of additional hours working will be in accordance with the Pay
        Procedures shown in 5.2.2. This will be applied fairly and consistently across the
        Council and will meet the requirements of the Council’s Equal Pay Policy.
Pay & Reward Scheme 2007                                                Page 14 of 44
        5.1.6 Progression

        Progression within a grade will be subject to satisfactory performance. The
        previous culture of time-served incremental progression does not meet the
        requirements of a modernised pay structure.

        Performance influenced increments meets the objectives of our new pay system
        and these increments will be validated through the Council’s Performance and
        Development Review scheme.

        Progression through Career Grades will be in accordance with criteria set out in the
        Job Descriptions and Person Specifications of those posts to which a Career Grade
        applies.

        5.1.7 Appeal Process Related to Assimilation

        The Council’s current appeal process applicable to Job Evaluations will be
        applicable where an assimilation decision is challenged.

        Where an employee considers that an assimilation has been unfairly applied, in the
        first instance, he/she will receive an explanation of how this has been applied and
        where this has applied to others of the same job evaluation points “family”.

        Following this, if the employee has specific grounds to consider that he/she has
        been treated unfairly or has had an assimilation decision applied unequally, then
        he/she will be given leave to appeal to a Hay-trained staff panel.


5.2     Pay Policy and Procedures

        5.2.1 Pay and Reward Policy

        In order to address the deficiency in the current system of the lack of clear and
        written pay policies, the Pay and Reward Policy, attached as Appendix 2, has been
        developed jointly between management and UNISON and adopted by the Council.
        This Policy underpins the Council’s new Pay and Reward Scheme.

        5.2.2 Pay Procedures

        The Pay Procedures set out how the Pay and Reward Policy is to be applied.
        These have been developed jointly between management and UNISON. The
        Procedures, attached as Appendix 3, address the deficiency of written clear
        rationale for pay and clear authorisation procedures. They are designed to ensure
        as far as possible fair and consistent application of the Policy.

        5.2.3 Additional Elements of Pay

        The framework for all elements of pay beyond those encompassed by the grading
        structure is set out in the Pay and Reward Policy and the Procedures for applying
        them are set out in the Pay Procedures.

        Through these systems, the Council will ensure that all employees will have a clear
        understanding of the criteria for allocating additional elements of pay and

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        confidence that these elements will be fairly and consistently applied across the
        Council and in accordance with Equal Pay principles.

        5.2.4 Performance Reward

        The Council is keen to reward exceptional performance beyond that rewarded by
        the annual increment review. It has therefore introduced a system whereby this
        exceptional performance may be rewarded by a single ex gratia reward.

        In applying this scheme, the Council will ensure that all of its employees, regardless
        of gender, age, disability, race or ethnic origin, have an equal opportunity to earn
        this performance reward.

        Further explanation is included in the Pay Procedures.

5.3     Single Status

        5.3.1 Leisure Services

        In order to ensure that all the Council’s employees are included within the new Pay
        and Reward System, the Council’s Leisure Service has been reviewed to achieve
        Single Status.

        It is recognised that many Council’s have externalised Leisure Services which have
        local terms and conditions which only apply to those services and which are largely
        based on leisure industry norms. However, as Hart District Council has Leisure
        Services within its organisational structure, then it is proper that those employees
        have harmonised terms and conditions with other Council staff.

        All positions within Leisure Services have been analysed and those staff who
        should properly be included in the Single Status Agreement have been identified.

        There are certain positions where it is not appropriate to apply NJC Terms and
        Conditions. These are:

        1.     Casuals: people who are employed on an ad hoc basic to perform occasional
        and irregular jobs.

        2.     Sports coaches, swimming instructors, sports teachers and any others who
        work on a regular basis of term-time or daily or weekly.: these often provide
        services for us on a self-employed basis (they usually provide services for several
        other organisations and on a private basis). They may provide services for us
        related to school terms only or for a limited period. Their rates of pay are governed
        by leisure industry norms guidelines.

        3.      Instructors who are contracted to work on a split income basis.

        Apart from the above three categories, 50 full time equivalents (approximately 130
        employees) have been identified as being able to being migrated onto NJC
        contracts which would then bring these employees into harmony with the remaining
        Council staff. This migration would involve enhancements to their current terms
        and conditions in annual leave, in sickness entitlements, in minimum wage and in
        assimilation on to an NJC spinal column point following job evaluation. Although

Pay & Reward Scheme 2007                                               Page 16 of 44
        this migration is at significant cost to the Council, it is recognised that in the spirit of
        Single Status, this migration is necessary.

        There is one exception to the terms for Leisure employees and that is concerning
        the “additional” hours worked at weekends. This element of working is an integral
        factor in working within the leisure industry and is therefore not viewed as
        “additional” hours. Customers expect access to Leisure Services at weekends and
        this is accepted and expected by employees. This pattern of working is therefore
        not considered as “unsocial” hours working and leisure employees accordingly do
        not receive a premium payment for it. In line with the Green Book which allows
        flexibility for agreeing local pay for certain elements including weekend working, the
        current basis for paying for this has therefore been jointly agreed to remain as is.

        5.3.2 Depot

        Single Status at the Depot was undertaken in 2003 and the Agreement finalised in
        December 2003. The contractual overtime, which was part of this agreement, was
        implemented by consolidating into basic pay. In order to comply with the separation
        of additional elements of pay required by the Pay Procedures agreed as part of this
        Agreement, this contractual overtime will be non-consolidated. The impact of this
        separation on take-home pay will be nil; however, the positions of the employees
        concerned within the Grading Structure will be clearly shown to be defined by the
        Job Evaluation scores.

5.4     Equal Pay Audit

        The Council has demonstrated its commitment to Equal Pay through its:

           Equal Opportunities Policy which is subject to regular review in consultation with
            UNISON
           Equality and Diversity Commitment, adopted by Members
           Equal Pay Policy
           Job Evaluation Scheme – to ensure equal pay for work of equal value
           Employment practices, including recruitment and progression
           Equal Pay Audit, carried out as part of the Pay & Grading Review

        This commitment to being and continuing to be an Equal Pay organisation has been
        jointly recognised.

        5.4.1 Equal Pay Audit Report

        An Equal Pay Audit has been carried out in accordance with the methodology
        recommended by the Equal Opportunities Commission.

        The Equal Pay Audit examined the Hay Evaluation Scheme which is used for Job
        Evaluation in Hart. This examination included a report from Hay on the “Equality
        Proofing” of its system. It also took into consideration the review and improvements
        of the application of the Scheme. These aspects were discussed by the
        Consultative Team of the Pay & Grading Review, which included UNISON. The
        conclusion was, as stated in 5.1.2 above, that the Hay Evaluation Scheme was
        valid and would be continued to be used.

        Where significant pay gaps were identified, the causes of these were established.
        Where these causes were found to be for reasons other than on the grounds of sex,
Pay & Reward Scheme 2007                                                    Page 17 of 44
        the amended percentage gaps were demonstrated in the Summary. The reasons
        for variations were included in the Report.

        The proposed Equal Pay Action Plan to ensure that we remain an Equal Pay
        organisation has been actioned as part of the full Pay & Grading Review. The
        issues in the Action Plan were:

        -       Sub grades in Public Spaces
        -       Contractual Overtime
        -       Starting Salaries
        -       Incremental Progression
        -       Career Grade Progression
        -       Market Supplements
        -       Overtime
        -       Equal Pay Policy
        -       Periodic Equal Pay Audit

        The Report also recommends that the Review examines the application of
        allowances and premium payments that affect the differences between basic and
        total pay, e.g. car allowances, market supplements.

        These have been addressed in the development of the new Grading Structure, the
        Pay and Reward Policy and the Pay Procedures.

        In summary, the Equal Pay Audit, recognises that we are an Equal Pay
        organisation; that where there are pay gaps between men and women that these
        are as a result of reasons other than gender; provides recommendations whereby
        we can remain an Equal Pay organisation – these recommendations have been
        addressed as part of this whole Pay & Grading Review and incorporated into the
        new Pay Scheme.

        The Report is attached as Appendix 4.

5.4.2 Back Pay on Equal Pay Claims

        Whilst legislation provides for back pay of up to 6 years where any claims by
        employees on equal pay are upheld, the Council will consider any such claims on a
        case by case basis.

5.5     Implementation

        5.5.1 Timetable

        A timetable was jointly developed in order to meet the deadlines set by the 2004
        Agreement.

        5.5.2 Methodology

                -          The Council will seek the internal and external approvals required
                -           Communications with employees will take place on a collective and,
                           where appropriate, on an individual basis
                -          The allocation of all additional elements of pay will be reviewed in
                           accordance with the criteria in the Pay Procedures

Pay & Reward Scheme 2007                                                   Page 18 of 44
                -          Adjustments required as a result of the review of allocation of
                           additional elements of pay will be applied with effect from the
                           implementation completion date of 31 March 2007
                -          Contracts and contract variations arising as a result of Single Status
                           and the new Grading Structure will be issued prior to 31 March 2008
                -          The payroll and HR systems will be amended to reflect the new Pay
                           and Reward Scheme
                -          Supporting procedural documentation will be developed prior to 31
                           March 2008
              -
        5.5.3 Communications Strategy

                A communications strategy was developed and agreed jointly at an early
                stage of the Pay & Grading Review, to ensure that employees and internal
                and external approval bodies would have appropriate communication.

                Communication with employees has been both direct (through staff
                meetings) and indirect (through the Chief Executive newsletter).

        5.5.4 Equality Impact Assessment

                An Equality Impact Assessment has been carried out on the Pay & Reward
                Scheme in accordance with the published guidelines

                Costs

                A budget provision has been made for the implementation costs of this
                Review. Whilst all concerned recognise that the Council operates within tight
                financial constraints and is currently facing severe financial challenges, this
                budget provision demonstrates the commitment of the Council to a pay and
                reward scheme which meets all of the stated objectives.

        5.5.5 Cost Savings or Productivity Improvements to Offset the Cost of
              Implementation

                The NJC Guidelines require the identification of cost savings or productivity
                improvements to offset the cost of implementation. Following the review of
                the allocation of additional elements of pay, there may be some savings, for
                example in the allocation of car allowances. However, these savings will not
                significantly impact on the costs of the Review.


6.0     REVIEW

6.1     Pay and Reward Policy

        The Pay and Reward Policy will be subject to a review every two years.

6.2     Additions to Basic Pay

        A review of the additional elements of pay and their application will be undertaken
        every year to coincide with the budget setting timetable or whenever a job is
        reviewed.

Pay & Reward Scheme 2007                                                    Page 19 of 44
6.3     Review of Whole Pay and Reward Scheme

        A total review of the Pay and Reward Scheme, including the Grading Structure
        resulting from the 2005/06 Pay & Grading Review and the Job Evaluation Scheme
        will be undertaken in 2012, five years from its implementation date




Pay & Reward Scheme 2007                                          Page 20 of 44
SCP           GRADES       Job Evaluation Score         APPENDIX 1
          4         A
          5
          6                                       GRADING STRUCTURE
          7                99 or below
          8
          9
        10
        11          B
        12
        13                 100-122
        14
        15         C
        16                 123-134
        17
        18
        19         D
        20
        21                 135-191
        22
        23
        24          E
        25
        26                 192-227
        27
        28            F
        29
        30                 228-268
        31
        32         G
        33                 269-313
        34
        35
        36         H
        37                 314-370
        38
        39
        40            I
        41                 371-438
        42
        43
        44            J
        45                 439-509
        46
        47          K
        48                 510-559
        49


              Heads
              of
              Service




Pay & Reward Scheme 2007                                 Page 21 of 44
                                                                                   APPENDIX 2


                                                        PAY AND REWARD
                                                             POLICY




1.0     INTRODUCTION

Hart District Council believes that interests of staff and the Council are best served by the
formulation and implementation of clear and consistent employment policies and
procedures. This policy sets out the Council’s position on pay and reward, pay rates and
the review mechanisms. It takes into consideration all legal requirements and will be
applied in accordance with the Council’s Equality and Diversity Commitment to treat all its
employees with dignity and respect.

2.0     HART’S APPROACH TO PAY & REWARD

Hart’s objectives for its pay and reward system, which have been developed jointly
between management and unions, incorporate the core values of its Corporate Plan: trust,
excellence, integrity, clarity and respect, and are as follows:
    A sound system – with robust data able to be audited
    Consistently applied to ensure fair pay
    Incorporating a clear system of rationale, authorisation routes, written policies and
       procedures
    Equal pay and opportunities
    Compliance with legislation
    Taking into consideration market factors using a benchmarking system
    Influenced by individual and corporate performance
    Containable within the Council’s resources

Hart District Council will use published benchmarking data, such as the regional annual
pay and reward survey results published by South East Employers, in order to undertake
market testing.

3.0     SCOPING OF POLICY

This policy will include the principles applicable to both the Grading structure and to the
additional elements of pay beyond the basic pay which is covered by the Grading
structure. It will also include Review.

Hart District Council does not currently have a Flexible Benefits system. A flexible benefits
scheme will be considered as soon as resources allow and not later than 5 years from the
implementation date of the Pay & Reward System in 2012.

Pay & Reward Scheme 2007                                                Page 22 of 44
The application of this Policy will be detailed in the Pay Procedures document. These Pay
Procedures will clearly set out the system of rationale and authorisation for application of
the Pay Policy.

4.0     GRADING STRUCTURE

        4.1 Framework

        Hart District Council’s grading structure, resulting from the Pay & Grading Review in
        2005/06, will be based on the NJC Terms and Conditions (commonly referred to as
        Green Book) and the national Spinal Column Points.

        The Council’s job evaluation scheme will be used to provide a consistent framework
        for determining the size of jobs throughout the organisation. The application of this
        scheme ensures the principles the equal pay for work of equal value.

        It will be applied to all NJC contracted employees including Heads of Service.

        4.2 Pay Progression

        Whilst the normal starting point for new employees will be at the entry point for the
        grade, in exceptional circumstances this could be accelerated in accordance with
        the guidelines in the Pay Procedures.

        Pay progression within the grade will be determined by satisfactory performance.

        4.3 Career Grades

        In some instances, the ability to carry out the full potential of the post is beyond the
        scope of one grade. Hart District Council therefore has a system of career grades.
        Advancement will be dependent upon capability to undertake the growth in
        responsibilities pre-determined for each grade level.


5.0     ADDITIONAL ELEMENTS OF PAY

        5.1 Framework

        It is recognised that, in addition to the basic pay contained in the grading structure,
        there are elements of pay resulting from:

                   pay resulting from requirements of the job
                -    these are pay elements driven by the operational requirements of specific
                     jobs. Examples may include shift premia, car allowances, standby/callout
                     payments
                   pay resulting from external pressures on recruitment and retention
            -        these are market driven pressures which effect specific jobs from time to
                     time. Examples may include market supplements, golden
                     handshakes/golden handcuffs
                   recognition reward payments
            -        these relate to the undertaking of roles and responsibilities outside of and
                     above the scope of the current job description to an exceptional degree.
                     This does not include, for example, participating in corporate project teams

Pay & Reward Scheme 2007                                                    Page 23 of 44
                  as this is a normal developmental activity. Examples may include honoraria
                  and acting up allowances.

        Where these elements are driven by the NJC Terms and Conditions of employment
        (Green Book), these terms will be complied with.

        As these elements of pay are outside of the Grading Structure, they are not
        consolidated into basic pay. They are therefore not pensionable or permanent.

        5.2 Additional Elements of Pay Locally Agreed

        Hart intends to utilise the flexibility allowed within the Green Book to determine
        elements of pay locally as appropriate. These elements of locally agreed pay will
        be detailed in the Pay Procedures which will be updated as appropriate.


6.0     REVIEW

This policy, in line with all other employment policies, will be subject to a review every two
years.

A review of the additional elements of pay and their application will be undertaken every
year to coincide with the budget setting timetable or whenever a job is reviewed.

A total review of the Pay and Reward system, including the Grading Structure resulting
from the 2005/06 Pay & Grading Review will be undertaken in 2012, five years from its
implementation date.




Pay & Reward Scheme 2007                                                Page 24 of 44
                                                                                   APPENDIX 3


                                                       PAY PROCEDURES




1.0      INTRODUCTION

Hart District Council believes that interests of staff and the Council are best served by the
formulation and implementation of clear and consistent employment policies and
procedures. The purpose of these Procedures is to detail the application of the Council’s
Pay and Reward Policy and should be read in conjunction with this. In doing so, a clear
system of rationale and authorisation routes will be shown. These Procedures take into
consideration all legal requirements and will be applied in accordance with the Council’s
Equality and Diversity Commitment to treat all its employees with dignity and respect.

2.0      SCOPING

The Pay Procedures will apply to all permanently employed staff on NJC contracts. Other
staff, including those covered under our Single Status agreements, sessionals, casuals
and Chief Officers have separate pay terms and procedures. The pay procedures
governing these other staff may include some or all of the procedures in this document –
this will be made clear in their contracts.

3.0      GRADING STRUCTURE

Generic Criteria:

     All employees governed by NJC Terms and Conditions of Employment will be graded
      in accordance with the Council’s Grading Structure
     Grades will be determined by the Council’s job evaluation scheme
     All changes in grades, including progression within grades to be confirmed to payroll in
      writing.
     All changes to be undertaken in liaison with HR to ensure compliance with the
      Establishment List

3.1      Progression within grades

Criteria:

     Progression within a grade will normally be in single steps
     Progression will depend upon performance
     Performance will be validated through the Performance and Development Review
      system (see PDR scheme documents)
     These criteria will apply to all grades
Pay & Reward Scheme 2007                                                Page 25 of 44
   The annual pay review will be effective from 1 April each year, with the exception of
    new starters who are required to have completed a satisfactory 6 month probation
    period before an increment will be considered.
   The normal starting point for new employees will be at the entry point for the grade. In
    exceptional circumstances the starting point may be at a further spinal column point
    within the grade. The starting point will be determined during the recruitment selection
    process, based on:

    -   first spinal column point: cannot accomplish goals and tasks without direction – new
        to the goals and tasks, inexperienced; level of support needed is directing
    -   second spinal column point: cannot accomplish goals and tasks without direction –
        has some knowledge and skills but not fully competent; level of support needed is
        coaching
    -   third spinal column point: can accomplish some goals and tasks without direction –
        moderate to high competence, is generally self-directed, but needs support and
        encouragement
    -   fourth spinal column point: can accomplish goals and tasks without direction –
        consistently competent, able to accept delegation

   In exceptional circumstances progression from the entry point to a grade for new
    starters may be accelerated. In accordance with the Council’s contractual practices,
    new employees will be assessed and reviewed during their probationary periods. At
    the end of this period a formal review will take place. At this point an assessment will
    be made on the employee’s abilities to fulfil the requirements of the position.
    Progression to the appropriate point of the grade will be made at this time. The
    development level will be assessed as follows:
    - first spinal column point: cannot accomplish goals and tasks without direction – new
        to the goals and tasks, inexperienced; level of support needed is directing
    - second spinal column point: cannot accomplish goals and tasks without direction –
        has some knowledge and skills but not fully competent; level of support needed is
        coaching
    - third spinal column point: can accomplish some goals and tasks without direction –
        moderate to high competence, is generally self-directed, but needs support and
        encouragement
    - fourth spinal column point: can accomplish goals and tasks without direction –
        consistently competent, able to accept delegation

Authorisation:

Heads of Service will authorise starting points where these are above entry point to the
grade and progression of all staff below the level of Heads of Service. Corporate Directors
will authorise progression of Heads of Service. The authorisation will be confirmed to
payroll in writing.




Pay & Reward Scheme 2007                                              Page 26 of 44
3.2      Career Grades

Criteria:

     Career grades may be applied to a post where the full potential of the post is beyond
      the scope of one grade.
     Career grades will be limited to a maximum span of 4 grades
     The criteria for progression from one step to the next within the career grade will be
      clearly set out in the Job Description and Person Specification at the time of
      recruitment.

Authorisation:

Progression within career grade to be authorised by the Head of Service and evaluation is
through the Performance and Development Review system.

3.3      Advances of pay

Criteria:

     For new starters where the start date of the employment contract leads to
      unreasonable delay in income for the jobholder.

Authorisation:

By Head of Service and confirmed to payroll in writing.

4.0      ADDITIONAL ELEMENTS OF PAY

These elements will be applied consistently across all services.

4.1      Car Allowances

The allocation of car allowances and mileage allowance to employees to enable the
efficient performance of their duties is on the basis of one of the following :

         (a) Essential User Allowance

            Essential Users are employees who are deemed to be employed on duties
            which are of such a nature that it is essential for them to have a motor car at
            their disposal whenever required. Lump sum allowance plus mileage allowance
            in accordance with Green Book.

         (b) Casual User Allowance

            Casual Users are employees who are deemed to be those for whom it is merely
            desirable that a car should be available when required. Mileage allowance in
            accordance with Green Book.

         (c) Car Cash Allowance

            This is a car cash alternate payment for Heads of Service and above where use
            of a car is an essential requirement of the job (see below for further

Pay & Reward Scheme 2007                                                Page 27 of 44
            explanation). Payment is lump sum allowance plus mileage allowance (lower
            than Essential or Casual), subject to annual review

        Criteria:

              car allowances will be allocated in accordance with the need to travel for
               operational purposes
             where travelling for operational purposes, including service development,
               benchmarking or networking, averages one or more occurrence per week,
               mileage will be paid in accordance with essential user allowance terms
             travelling for personal development is excluded from the above frequency
               calculation
             The allocation of car cash allowances for Heads of Service will be based on
               the operational (service specific) requirements of the job description as
               follows:
               -     Travel between HDC locations
               -     Managing a mobile workforce – substantial management (quality
                     assurance) input required.
               -     Operationally mobile role, e.g. direct involvement in regulatory service
                     inspections
               -     Capacity building with the community – direct involvement with
                     community groups in the form of significant and substantial attendance
                     at their locations across the district
        Allocation of a car cash allowance to Heads of Service will not be paid on the
        generic element of the job description (e.g.there is a generic requirement for the
        jobholder to establish and maintain effective partnerships – this is not sufficient to
        warrant a car cash allocation).

        Authorisation:

        Car allowance allocations will be confirmed:

               As part of the recruitment decision
               Subsequently annually following review

        Car allowance allocations for Heads of Service will be authorised by Leadership
        Team.

        Car allowance allocations for all other staff will be authorised by the appropriate
        Head of Service.

4.2     Market Supplements

4.2.1 Introduction

Salaries are set at levels that generally support recruitment and retention. In a small
number of cases it may prove difficult to retain or attract staff, often for temporary periods,
because of local or national shortages. In these circumstances the application of market
premia should be considered.

The council’s job evaluation scheme and grading structure provides a consistent
framework for determining the size of jobs throughout the organisation. However, like job
evaluation schemes in general, it does not take account of the market forces for individual
jobs or job families.
Pay & Reward Scheme 2007                                                 Page 28 of 44
4.2.2 Process

A co-ordinated corporate approach to market supplements which is transparent and
understandable is required. This will be achieved by each case being reviewed by the
Head of Human Resources, The Head of Human Resources will provide advice on the
application of supplements and monitor them.

Consideration is to be given to a range of other ways of delivering the work required.

4.2.3 Criteria for Market Supplements

       The job(s) concerned cannot be redesigned to deliver the work required in another
        way.
       It is uneconomical and /or impractical to employ agency staff or contractors
       The specific job is regarded as critical to the Council in the delivery of essential
        and/or statutorily required services.
       Evidence of difficulty in recruitment, including number of attempts at recruitment,
        levels of appropriate response and vacancy duration.
       Evidence of retention difficulty, including turnover rates, lengths of service and
        stated reasons for leaving

4.2.4 Justification

Heads of Service will produce a concise report presenting the business case for an
additional payment showing how all of the above criteria have been met. The report
contents may vary from case to case however is likely to contain:

       The post concerned, the grade and date of last evaluation.
       How long the post has been vacant and the length of time that the last occupant
        held the post.
       Number of times that the post has been advertised, in what media, over what
        period. The level of appropriate response / offers made and reasons why offers
        were not made.
       Turnover statistics for the group of staff, highlighting resignations over the last year.
       Specific skills required when dealing with single posts and the market in which the
        post operates.
       Measures that have been considered to redesign the work or deliver in a different
        way.
       Details on the essential nature of the post concerned, impact on services and
        business continuity.
       Details of comparative published market pay data specific to the occupational group
        (from for example The Annual Regional Pay and Benefits Survey of South East
        Employers Organisation or pay data from the Employers Organisation). In the
        absence of such data comparative salaries for similar posts advertised by other
        councils/organisations. ( Great care must be taken in these circumstances to
        ensure that “like for like” comparisons are being made. e.g. obtaining Job
        descriptions and specifications)
       The estimated cost of the market supplement
       Details of the payment to other members of the job family. If not to be extended, the
        reasons why.
       Estimated cost of the proposals and how it will be funded from existing budgets.

Pay & Reward Scheme 2007                                                  Page 29 of 44
         All business cases are to be produced in collaboration with Head of Human
          Resources

4.2.5 The Supplement

         The job evaluated grade for the post will continue to be the substantive grade.
         Supplement approved will normally be applied to all identically designated posts
          and will be reviewed annually.
         Each year all supplements will be reviewed by the Head of Service in conjunction
          with the Head of Human Resources by reference to the same published market pay
          data source as used in the original business case above. The impact on retention of
          the supplement granted will also be considered.
         Any changes to the supplement will be effective from the 1 April following annual
          review. Any reduction or withdrawal will be subject to 3 months notice.

4.2.6 Monitoring

It is essential that this procedure is monitored in order for the Council to achieve fair and
consistent treatment and for quality standards to be maintained. Heads of Service in
conjunction with the Head of Human Resources are responsible for monitoring application
of the procedure. The Head of Human Resources is responsible for auditing from time to
time, all aspects of the procedure, to ensure that quality standards are being maintained
and to inform Management Team of issues arising from the monitoring information.


Authorisation:

Market supplement payments will be authorised by the appropriate Corporate Director
upon review of the written business case in 4.2.4 above. Market supplement payments for
Heads of Service will be authorised by the Leadership Team upon review of the written
business case as in 4.2.4 above.

4.3       Overtime

          Criteria:

                The Council’s flexi time scheme to be used as the prime flexibility
                 arrangement for working time
                Where flexi time is not able to be taken for extraordinary and exceptional
                 reasons, time off in lieu will be granted provided this does not significantly
                 impact on operational requirements
                Where flexi time or time off in lieu cannot be applied, then time worked in
                 excess of contractual working hours and terms will be paid at a consistent
                 overtime rate of time and a half to employees at SCP 28 or below.
                Overtime payments are to be met from existing service budget

          Authorisation:

          Overtime will be authorised by the appropriate Head of Service, in advance having
          validated the reasons for non application of flexi or time off in lieu.




Pay & Reward Scheme 2007                                                   Page 30 of 44
4.4     Evening meeting/working related payments (other than overtime)

        Criteria:

        Payment of meal allowances and other accommodation expenses incurred during
        evening working (other than within contractual working hours) or attendance at
        evening meetings, will be reimbursed subject to limits based on the Green Book
        rates, provided:

               Receipts for expenditure incurred are provided
               Evening working/attendance at evening meetings has been by prior
                arrangement with the appropriate Head of Service

        Authorisation:

        Authorisation for payment will be given by the appropriate Head of Service, or
        appropriate Corporate Director in the case of a Head of Service

4.5     Acting Up Allowances

        Criteria:

               Where employees are requested to undertake temporarily the duties and
                responsibilities of a higher graded post for a continuous period of at least
                four weeks. This may occur as a result of:
                - temporarily filling a post until a substantive appointment can be made
                - filling a key post while another employee is on maternity/paternity/parental
                  leave
                - filling a key post to cover long term sickness absence
                - filling posts due to other temporary extended leave arrangements, e.g.
                    secondments
               Opportunities for acting up will be regarded as development and such
                opportunities will be “advertised” internally to all eligible members of the
                section or service for competitive application. In the case of a generic role,
                the opportunity will be advertised for all staff. Applications should be made
                following discussion with the applicant’s own Head of Service. If the
                successful applicant is from another Service, the secondment may only take
                place with the agreement of the relevant Head of Service.
               Payment will be based on the salary which would apply were the officer to
                be promoted to the higher level post, which would normally be the bottom
                point of the higher grade.
               Where a percentage of the higher posts responsibilities are allocated, a pro
                rata payment will be applied.
               Wherever possible the likely duration of the period of acting up should be
                indicated before it commences. If this is not possible, the arrangements
                should be regularly reviewed. In no circumstances should this duration
                exceed 12 months.
               Performance in the acting up position should be regularly reviewed. If there
                are any concerns regarding performance then these should be discussed
                and relevant support provided, prior to review of the duration of the acting up
                period.
               All acting up opportunities, applications and agreements will be confirmed in
                writing.

Pay & Reward Scheme 2007                                                 Page 31 of 44
          Authorisation:

          Payments will be authorised by the appropriate Head of Service in consultation with
          the Head of Human Resources who will monitor consistency of application and
          check that the above criteria have been applied. Payments for Heads of Service
          will be authorised by the Chief Executive.

4.6       Payments for Exceptional Performance

          Criteria:

                One-off payment relating to a discreet piece of work or project which
                 combines being exceptional to the normal scope of an employee’s duties and
                 responsibilities which may involve responsibilities of a higher grade post.
                This does not apply to involvement in corporate project teams as this would
                 be considered both part of normal working and a development activity.
                The payment is related to the activity and justification must be clearly
                 detailed in the authorisation request.
                The opportunity to earn these Performance Payments will be open to all
                 employees.

          Authorisation:

          In view of the exceptional and singular nature of this payment, application should be
          made by the appropriate Head of Service, having consulted with the Head of
          Human Resources, to the Chief Executive for authorisation. This authorisation
          request to clearly show the justification against the above criteria and the budget
          from which payment is to be made. Authorisation of the payment will take into
          consideration not only the nature of the work undertaken, but the quality of the
          work.

4.7       Standby and Callout

Criteria

         Genuine business need for a required response out of normal working hours.
         In the first instance, consideration to be given to other ways of delivering the work
          required including job remodelling or the employment of other staff.
         Identification of staff group required for scheme and the duties required.
         Define method of call out and frequency of standby and duration.
         Formulate rota of appropriate staff.
         Ensure staff will be fit and able to respond if required to attend site.
         The standby payment will be set by the Chief Executive and reviewed on an annual
          basis.
         Callout payment when required to work to be at overtime rate of time and a half for
          the hours required to attend.
         Dependant on length of call out, start time for normal attendance at work following
          call out to be considered to ensure reasonableness and compliance with Working
          Time Regulations.
         Published benchmarking data to be used as comparators if available
         Where the contract/Job Description requires standby/callout.



Pay & Reward Scheme 2007                                                 Page 32 of 44
Authorisation

Standby and callout payments will be authorised at the time of recruitment by the Head of
Service and thereafter reviewed on an annual basis. They will be confirmed to payroll in
writing.

4.8       Shift Premia

Criteria:

         In the first instance, consideration to be given to other ways of delivering the work
          required.
         If early morning or evening working is required, adjustments to the normal working
          day should be considered.
         Where the above adjustments are not able to deliver the work required and the
          working pattern consequently involves a disturbance to work/life balance by rotating
          working hours patterns or by permanent night working, then this is shift working and
          a shift premium payment is appropriate.
         Identify the number of staff required to deliver the service required.
         Design an appropriate shift rota.
         Consider the amount of shift premium to be paid (a percentage of basic pay)
          dependant on:-
              o Length and type of shifts required. e.g. permanent night shifts.
              o The frequency of rotation of shifts and disturbance.
              o The hours covered by the shift pattern.
         Published benchmarking data to be used as comparators if available.
         Where the contract/Job Description requires shift working.

Authorisation

Shift premia will be authorised at the time of recruitment by the Head of Service and
thereafter reviewed on an annual basis. They will be confirmed to payroll in writing.


5.0       APPEAL

Employees have the right to appeal against the application of any aspect of the Pay and
Reward Policy and/or Procedures. The appeal will follow the escalation process in the
Council’s Grievance Procedures.

6.0       REVIEW

The job evaluated grade for the post will continue to be the substantive grade.

All the remuneration payments in section 4.0 will be subject to a minimum of annual review
after initial award.

Further review will take place on amendments to the job description.

Review will take place by the Head of Service and/or Corporate Director and/or Leadership
Team as appropriate in conjunction with the Head of Human Resources.



Pay & Reward Scheme 2007                                                 Page 33 of 44
Where withdrawal of a supplement is intended the employee will be notified and given
three months notice of the withdrawal except where the supplement is allocated for a pre-
designated specified period.




Pay & Reward Scheme 2007                                            Page 34 of 44
                           HART DISTRICT COUNCIL


                           PAY AND GRADING REVIEW

                               EQUAL PAY AUDIT




                                CONFIDENTIAL




                               Howard A Gardner

                       Human Resource Management Consultant




Pay & Reward Scheme 2007                                Page 35 of 44
1. TERMS OF REFERENCE

Commissioned by Rosaline Vickers, Head of Human Resources:
“To undertake and manage an Equal Pay Audit of NJC staff as part of a wider Pay and
Reward Review. To develop a system to form the basis of future regular Audits.”


2. INTRODUCTION AND BACKGROUND

2.1. This audit stems from a pilot review undertaken in March 2005. That review relied on
information obtained from two sets of accountancy spreadsheets. Figures were transcribed
from part of the sheet to the newly produced columns. These sheets did not contain
information on hours worked; grades or spinal column points, further sets of spreadsheets
supplied from Finance were accessed to complete this data. Gender data when not
available from these spreadsheets was obtained manually from names in the telephone
list. There remained at this stage gaps in the data, which were supplied manually and
entered in the spreadsheet. It was recognised that this data source was far from ideal and
the results were therefore potentially unreliable.

2.2. At the outset of this current review other possible methods of data capture were
explored, as a result, the current Audit has been able to extract a data set direct from
Payroll – a more reliable source for this purpose. This has been achieved by the significant
effort of members of the project team in both Payroll and ICT. I should like to thank those
staff concerned for their co-operation and dedication in producing the data set. Some of
the data required has been added to the set manually, this results from the current lack of
a unified database for Payroll and H.R management information systems.

2.3. Equal Pay Audits have taken on a new significance nationally and in Local
Government in particular since the publication of the Pay Commission Report, the Pay &
Workforce Strategy and the 2004 Pay Settlement for Local Government Services. The
“Green Book” pay settlement requires Equal Pay Audits to be undertaken within the
lifetime of the settlement (3 years) in each authority. Significance also applies following
recent challenges to equal pay in some local authorities, led by “no win no fee” solicitors. If
sustained these claims can prove to be very costly and can cause problems with existing
pay structures, (they have mainly been based around bonus earnings – which do not exist
at Hart D.C.) far better to be aware of potential problems and make appropriate plans in
partnership with staff and trade unions to resolve the situation.

2.4. An Equal Pay Review involves: - comparing the pay of men and women doing equal
work, analysing any pay gaps that are found, investigating causes and closing gaps that
cannot be justified on grounds other than sex. Being one of the key factors affecting
motivation and productivity at work, a fair and equal pay policy is vital. Only an equal pay
review can ensure that a system of equal pay exists.

2.5. The Equal Opportunities Commission has developed an equal pay review model. The
model has five steps:

    1.   Deciding the scope of the review.
    2.   Identifying where men and women are doing equal work.
    3.   Collecting and comparing data to identify any significant equal pay gaps.
    4.   Establishing the causes of any gaps and assessing the reasons for them.
    5.   Developing an Equal Pay Action Plan.

Pay & Reward Scheme 2007                                                Page 36 of 44
2.6. The EOC model has been used as a basis for this Audit and has been informed by the
following two publications - SOCPO, Equal Pay Review – a Practical Guide and South
East Employers - Equal Pay Audit – A Rough Guide. The remainder of the report will
follow the five headings of the EOC Model


3. STEP 1 - SCOPE OF THE REVIEW

3.1 The terms of Reference for this review require analysis of staff employed by Hart
District Council covered by the National Joint Council for Local Government Services,
including Heads of Service, in addition, although outside of Green Book conditions
Corporate Directors have also been included. At this stage, the relatively narrow aspect of
sex discrimination forms the basis for the review. Subsequent reviews should be expanded
(when data is more readily available) to cover ethnicity, age and disability. Sessional and
casual workers, particularly in Leisure have not been included in the review. Following the
harmonisation second stage of the Pay and Grading review, leisure workers then covered
by the Green Book should be included in subsequent audits.

3.2 Data requirements are critical to the success of an Equal Pay Audit, in this case all the
various elements of pay and the personal characteristics of each employee have been
collected. Obtaining this data in a usable form has not been straightforward as described
in section 2. Difficulty in obtaining the relevant data can sometimes indicate a lack of
transparency; this aspect is being considered as part of the wider Pay and Grading
Review.

3.3 To drive analysis, the following report from the Payroll system added to manually has
been specified, this has supplied a basic data set for analysis:-

       Payroll No.
       Name
       Service
       Sex
       Job Title
       Grade
       Market Supplement
       Spinal Column point
       Hours worked
       Basic pay
       Total pay
       Total allowances
       Allowances – broken down into each element

3.4. This data set has not been easy to obtain because of the lack of a single payroll and
H.R. database and the design of the current payroll system.
The above data has been obtained for the same period for all staff, in this case a snapshot
of one month – July 2005.


4. STEP 2 - IDENTIFYING EQUAL WORK

4.1. Staff at Hart District Council are covered by a single analytical Job Evaluation scheme
– the Hay Guide Chart Scheme and have a common pay spine and grading structure. The
scheme establishes which jobs are of equal value. Where an analytical job evaluation
Pay & Reward Scheme 2007                                               Page 37 of 44
scheme exists this is the most reliable way of assessing equal work and whether jobs are
of equal value.

4.2 Before embarking on a pay audit based on the results of job evaluation, a prime
concern is that the scheme is free of sex bias and results in equal value for both men and
women.
This may be done by considering:-
       The age of the scheme.(older schemes are more likely to have been developed
          without a full understanding of the forms of sex discrimination)
       The last review of the scheme.
       The schemes transparency.
       The schemes treatment of significant factors of jobs typically undertaken by
          women, e.g. Interpersonal skills, manual dexterity, responsibility for customers,
          clients, etc. The effect of the weighting and scoring system on predominately
          male or female jobs.
       How the scheme is implemented, e.g. training of evaluators, check evaluations,
          panel evaluations etc.

        The above process can be referred to as “Equality Proofing”, Hay, the suppliers of
        this widely used scheme in Local Government have been contacted and the
        Consultative Group has already considered their response. UNISON have accepted
        that the Hay Scheme is a valid scheme.


5. STEP 3 - COLLECTING AND COMPARING DATA & IDENTIFYING SIGNIFICANT
PAY GAPS

5.1. As detailed in the EOC toolkit possible pay gaps can be established by examining
each grade and comparing the average full time equivalent (fte) basic and average fte total
(including allowances) salaries paid to all men and women within them.

5.2. It is important that a consistent comparison is made, either by converting all to an
hourly rate or on a full time salary basis by grossing up those who work fewer hours, for
this reason from the initial data set, fte basic and fte total pay has been calculated for each
employee.
The average pay in each grade for men and women and the total in each grade was then
calculated and comparisons made and expressed as pay gaps in favour of either men or
women. As recommended by the EOC significant differences in excess of 5% between
pay of men and women would merit further investigation, as would patterns of basic pay
difference in excess of 3%, e.g. women consistently earning 3% more or less than men at
most or all grades in the organisation.

5.3. The overall pay gap between men and women for the whole of the sample has also
been calculated as has the distribution of men and women across all grades.

5.4. All findings are based upon the data set supplied from Payroll for July 2005 for all NJC
employees at Hart D.C. (the sample does not include sessional and casual workers in
Leisure)

5.5. Analysis of each grade and the resulting pay gaps are shown at appendix 1.
5.6 The raw results (prior to investigating the reasons and justifications for variations
found) indicate that the gaps between men and women’s pay fall within the guidelines set
out by the EOC in 12 of the 20 grades found.

Pay & Reward Scheme 2007                                                Page 38 of 44
Exceptions to this are
Grade 1      A basic pay gap of 9% in favour of women exists
Grade 2      A total pay gap of 11% in favour of men exists
Grade 3      Basic and total pay gaps of 7.5% and 5.2% respectively in favour of women
             exist.
Grade 4      A total pay gap of 8.1% in favour of men exists.
Grade 5      A total pay gap of 20.8% in favour of men exists.
Grade 9      A total pay gap of 8.1% in favour of men exists
Grade 3/7    Basic and total pay gaps of 6.6% in favour of men exist
Grade 4/7    Basic and total pay gaps of 8.5% and 14.4% respectively in favour of men
             exist.

5.7. The distribution of men and women between grades across the organisation is
shown in the chart below.




                  30.0
                                  GRADE DISTRIBUTION BY GENDER

                  25.0
     PERCENTAGE




                  20.0



                  15.0
                                                                                                                TOTAL%
                  10.0
                                                                                                                FEMALE%
                                                                                                                MALE%
                   5.0



                   0.0
                                                                                                         fS
                             2



                                      3

                                           7



                                                    4

                                                         7



                                                                  7




                                                                               7



                                                                                        8
                         1



                                  2




                                                3




                                                              4



                                                                       5

                                                                           6



                                                                                    7



                                                                                             8

                                                                                                 9
                                                                                                        11



                                                                                                              CD
                             1\



                                      2\

                                           2\



                                                    3\

                                                         3\



                                                                  4\




                                                                               6\



                                                                                        7\




                                                                                                      Ho




                                                              GRADE

5.8. The above chart indicates that 77% of women fall within grades 1-4, compared with
65% of men. In the middle band of grades 5-8, there are 17% of women and 23% of men
and in the top grades above grade 8 there are 5% of women and 12% of men. Clearly
more women are found in lower grades than men, this could be because of occupational
segregation or that fewer women progress to higher grades. If this is the case this
difference could be addressed, one possible outcome could be to encourage and develop
women to take more highly rated jobs along with consideration of possible barriers to
women achieving higher positions to redress the imbalance. One action that could be
Pay & Reward Scheme 2007                                                                             Page 39 of 44
considered would be that any future management development activity includes
appropriate modules to address the specific development needs of women. The swing
point between men and women in grades appears to be grade 5 above that level there are
always more men in grades than women. The high number of men in grade 1 is obtained
because of the almost exclusively male workforce in the DSO.

5.9. The Council wide overall Basic FTE and Total FTE average salaries for women in the
month sampled were £1810 and £1900, for men they were £1913 and £2129 respectively.
This gives an overall Basic FTE pay gap of 6% in favour of men and a Total FTE pay gap
of 12% in favour of men. This gap compares with a national gender pay gap of 18%
(EOC findings showed an 18% gap between the salaries of men and women in full-
time work, in favour of male workers – Aug 2005), and a local government gap of
16% for Full Time employees. (Figures from the Pay Commission report 2003).



6. STEP 4 – ESTABLISHING CAUSES FOR SIGNIFICANT PAY GAPS & ASSESSING
JUSTIFICATIONS

6.1 In appendix 1 those results in the Basic Pay Gap and Total Pay Gap Columns that are
outside of the EOC guidelines have been further examined. (This has been achieved by
“drilling down” into the base data to highlight anomalies). Although gaps do exist, when
they have been examined, reasons other than on the grounds of sex have been found to
explain the variation. When these anomalies are taken out of the calculations the results
are shown in the Amended B P (Basic Pay) and Amended T P (Total Pay) Gap columns in
appendix 1. The results show five grade gaps where further investigation is required as the
gaps are outside of the EOC guidelines. However, It should be noted that because of the
often-small populations in each grade even small differences in the pay of individuals will
have a noticeable effect on the gap.

6.2. Following further research, the suggested causes and justifications for these
variations are given below for each of the relevant grade pay gaps (They should be
considered along with appendix 1.)

Grade 1        1 F is shown as being paid scp 23, beyond the bounds of grade 1 (scp18 is
the top of grade1), when this employees data is removed, the basic pay gap reduces but,
remains outside of guidelines at 6.4%. However following further analysis it was found that
within the overwhelmingly male DSO the full grade scps are not used in all cases and in
addition to limited use of the full grade, 3 sub grades are used. In consequence it is
suggested that the remaining gap is attributable to the limited grade structure within the
DSO which results in lower scp,s for the overwhelmingly male DSO workforce in this
grade.

Grade 2       1 M had an arrears payment of £540, when this payment is removed the total
pay gap reduces but, remains outside of guidelines at 9%. Following further analysis, it
indicates that the remaining gap is attributable to high amounts of contractual and other
overtime paid to the overwhelmingly male DSO workforce in this grade.

Grade 3       1 F basic salary is shown as outside of the bounds of the grade, when this
employee is removed the basic pay gap reduces but, remains outside of guidelines at 6%.
Following further analysis it is considered that the remaining gap is because the women in
this grade sample are generally occupying higher scp,s than men.


Pay & Reward Scheme 2007                                             Page 40 of 44
Grade 3/7 The only man in this grade is on a higher scp than the women, given the very
small population in this grade ( 3 staff, 2 women and 1 man) the variation is not considered
significant

Grade 4       1 M received £1563 arrears of pay in this one month, which skews the result
with regard to total pay, when this amount is removed from the calculation the gap falls
within an acceptable range.

Grade 4/7 1 M received a market supplement, when this amount is removed the total
pay gap reduces, but remains outside of the guidelines at 12%. This grade covers a small
sample however (6 staff, 3 women and 3 men) and the men tend to be placed on higher
scp, s and have higher overtime payments.

Grade 5       1 M received an honorarium of £1750 in this one month which skews the
result, when this amount is removed the gap falls within an acceptable range.

Grade 9       2 M are in receipt of market supplements and 1M has a high overtime figure,
when these are removed the gap falls within acceptable levels. 6 of 7 M are on the top scp
of the grade,

The above shows that these pay gaps were for reasons other than on the grounds
of sex. The amended percentage gaps are demonstrated in the Summary
spreadsheet attached.


7. STEP 5 – DEVELOPING AN EQUAL PAY ACTION PLAN AND ESTABLISHING
REVIEWS

7.1. The reasons for the gaps identified in step 4, although not necessarily related to the
sex of the employee raise a number of issues that require further consideration to confirm
that there are real reasons for the differences that have nothing to do with the sex of the
jobholder
This Equal Pay Audit has been conducted as part of a wider Pay and Grading Review.
This review will take on board the outcomes of the audit and the action plan shown below,
to ensure that any unjustifiable pay gaps that may exist are eliminated in a reasonable
period.

7.2. It is proposed that as part of the new developing Pay Policy at Hart D.C. a section
committing to an equal pay policy along the lines of the model set out by the EOC in the
Code of Practice on equal pay be adopted. It is considered that if the tasks noted in the
Action Plan are implemented a equal pay structure will be ensured


7.3.                       PROPOSED EQUAL PAY ACTION PLAN

          ISSUE                              PROPOSAL                                 COMMENT
1) DSO Sub grades              Consider as part of P&G Review
2)Contractual Overtime         Consider extent and access                      Primarily in the
                                                                               DSO
3) Starting salaries        Consider as part of P&G Review
                            and develop policy
4) Incremental progression  Consider as part of P&G Review
                            and develop policy
5) Career Grade progression Consider as part of P&G review
Pay & Reward Scheme 2007                                              Page 41 of 44
                                And develop policy
6) Market Supplements           Consider as part of P&G Review
                                And develop policy
7) Overtime                     Consider as part of P&G Review
                                And develop policy
8) Equal Pay Policy             Develop and agree
9) Periodic Equal Pay Audit     Establish regular review annually
                                And extend to Ethnicity, Age and Disability
                                At the next audit.


8. CONCLUSION

8.1. This audit has highlighted the difficulties in obtaining an accurate data set for analysis;
it is proposed that the implementation of a management information and task processing
system that has a common database for both Payroll and H.R. purposes is considered. It
would be advantageous if this were achieved prior to the next audit.

8.2. The Green Book Pay Award only requires an audit based on gender to be undertaken;
however, it is recommended that it be extended at the time of the next audit to cover
ethnicity, disability and age, to meet the requirements of the Local Government Equality
Standard. Tackling a gender pay gap is not a one off exercise; it needs to be part of a
forward-looking process, which considers the shape of jobs in the future, linked to service
improvement. Mechanisms for regular audit should be developed. This current review lays
the foundations and provides a basis for future monitoring. It is proposed that the reports
that have been produced as part of this review should be used at regular intervals to
undertake future audits. Equality auditing is not a static function, on future occasion’s
matters such as starting salaries; progression within grades etc. could be added to the
scope of the audit.

8.3. It is most important that the effect of any new Reward Structure be taken into account
through an Equality Impact Assessment.

8.4. In general the audit shows pay gaps contained within the EOC guidelines, those few
shown outside, either require further consideration as part of the wider Pay & Grading
Review or as part of the next Audit when other matters could be examined. It is envisaged
that the result of the Pay and Reward Review will address the issues highlighted as
detailed in the action plan. The application of allowances and premium payments that
affect the differences between basic and total pay are also being considered, e.g. Car
allowances, Market supplements.




Pay & Reward Scheme 2007                                                 Page 42 of 44
GRA SE N             BASIC FTE    BASIC FTE   TOTAL   TOTAL FTE       BASIC PAY   TOTAL PAY   Amend B P   AmendT P
 DE X o.              TOTAL       AVERAGE      FTE    AVERAGE           GAP          GAP         Gap        Gap
  1  F 11              13368        1243      14129     1284             9%         0.20%       6.40%
     M 28              31922        1140      35908     1282                                               2.60%
  2  F 39              55587        1425      58684     1505            2.10%                   2.10%
     M 19              26530        1396      31728     1670                         11%                     9%
  3  F 27              43476        1610      45330     1679            7.50%       5.20%        6%        4.40%
     M 11              16475        1498      17552     1596
  4  F 27              48547        1798      51402     1904            4.10%                   4.10%
     M 11              19013        1728      22636     2058                        8.10%                  0.60%
  5  F 9               17287        1921      18943     2105
     M 5                9874        1975      12718     2544            2.80%      20.80%                  0.60%
  6  F 9               20040        2227      20753     2306              2%          0          2%           0
     M 7               15283        2183      16140     2306
  7  F 4               10249        2562      10784     2697
     M 6               15780        2630      16835     2805            2.70%        4%         2.70%       4%
  8  F 3                8577        2859       8863     2954              1%                      1%
     M 7               19822        2832      21457     3065                        3.80%                  3.80%
  9  F 2                6133        3067       6319     3160
     M 7               21900        3129      23920     3417             2%         8.10%        2%        4.10%
 11  F 0
     M 1                   3830     3830      3830        3830            \           \
 1\2 F 3                   4612     1537      4585        1528            \           \
     M 0
 2\3 F 2                   2735     1368      3055        1527            \           \
     M 0
 2\7 F 0
     M 1                   2562     2562      2698        2698            \           \
 3\4 F 1                   1588     1588      1592        1592            \           \
     M 0
 3\7 F 2                   4404     2202      4404        2202
     M 1                   2348     2348      2348        2348          6.60%       6.60%       6.60%      6.60%

Pay & Reward Scheme 2007                              Page 43 of 44
 4\7 F         3           6419    2140   6891        2297
     M         3           6966    2322   7880        2627        8.50%   14.40%   8.50%   12.50%
 6\7 F         0                                                     \       \
     M         1           2120    2120   2120        2120           \       \
 7\8 F         1           2497    2497   2617        2617           \       \
     M         0                                                     \       \
HofS F         5           18308   3662   18874       3775        2.70%            2.70%
     M         5           17833   3567   19103       3820                1.20%            1.20%
 CD F          1            5834   5834    5925       5925          0     1.60%     0%     1.60%
     M         1            5834   5834    5834       5834




Pay & Reward Scheme 2007                          Page 44 of 44

				
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