PAY PROGRESSION POLICY - doncasterccg.nhs.uk … · Page 3 of 17 CONTENTS Page Section A – Policy...

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PAY PROGRESSION POLICY

Last Review Date August 2019

Approving Body Executive Committee

Date of Approval 19 February 2020

Date of Implementation 25 February 2020

Next Review Date August 2022

Review Responsibility Associate Director of HR & Corporate Services

Version 0.2

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REVISIONS/AMENDMENTS SINCE LAST VERSION Date of Review Amendment Details

January 2018 Amended to reflect the current CCG structure, roles and responsibilities

Amended to reflect pay progression and the norm and deferral by exception

August 2019 Amended to reflect changes to national Pay Progression Processes in line with Agenda for Change Terms and Conditions.

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CONTENTS

Page

Section A – Policy

1. Policy Statement, Aims & Objectives 4

2. Legislation & Guidance 4

3. Scope 4

4. Accountabilities & Responsibilities 5

5. Dissemination, Training & Review 6

Section B – Procedure

1. Requesting Pay Progression 8

2. Pay Progression that falls within a prolonged period of agreed or recognised leave 8

3. Bands 8C, 8D and Band 9 Employees 9

4. Approving a Request for Pay Progression 9

5. Deferment of Pay Progression 9

6. Right to Review 9

Appendices

Appendix 1 – Application for Deferral of Pay Progression 13 Appendix 2 – Pay Progression Time Scale 14 Appendix 3 – Application for Pay Progression 15 Appendix 4 - Equality Impact Assessment 16

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SECTION A – POLICY

1. Policy Statement, Aims and Objectives 1.1. NHS Doncaster CCG has a duty to ensure provision of high quality services

and strives to be a high performing organisation which seeks continuous improvement to quality, safety and the patient experience. To achieve this maximising the contribution of each employee is key. A new pay progression system came in to place on 1st April 2019 for new

starters and those promoted to a new role on or after 1st April 2019. Promotion

means moving to a higher banded role. For existing staff in post up to 31st

March 2019 the current CCG pay progression procedures will continue to

apply until 31st March 2021 after which time they will also be subject to the

new provisions.

Nationally changes to NHS Terms and Conditions of Service NHS Terms and

Conditions of Service were agreed by the NHS Staff Council in 2018 clarifying

new arrangements for employees progressing through pay bands

(incremental/Pay Step progression). This procedure applies to all Doncaster

Clinical Commissioning Group (DCCG) employees employed under NHS

Terms and Conditions of and describes the approach to be followed

concerning pay progression.

1.2. Pay progression should not be seen as an automatic right by employees but rather is something to be earned and is a reward that is dependent on satisfactory performance, conduct and demonstration of meeting all statutory and mandatory training requirements relevant to their role. The CCG has a duty to provide high quality services to our stakeholders and partners and strives to be a high performing organisation that continuously improves quality, safety and the patient experience. It is a key part of the CCG strategy to achieve its goals through maximising the contribution of each employee. In support of this aim, and in accordance with NHS Terms and Conditions of Service, this policy sets out the basis upon which an individual’s performance drives pay progression. It is expected that employees who can demonstrate the required level of performance and conduct, who have met their objectives and are compliant as regards their statutory, mandatory training will progress annually through the increments/Pay Step Points in their salary band. For existing employees in pay bands 8C, 8D and 9, pay progression into the

last two points in the pay band are earned on an annual basis. There is also

the scope within the nationally agreed changes to remove earned increments

in the last two points of the pay band. From 1st April 2019 for new and

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promoted staff in Pay Bands 8c, 8d and 9 up to 10 per cent of basic salary will

become re-earnable subject to performance

1.3. The development of this policy:

Ensures a robust procedure and approach to pay progression is applied

Sets out the responsibilities for line managers and employees in relation to managing pay progression

Satisfies legislative requirements. 2. Legislation and Guidance 2.1. The following legislation and guidance has been taken into consideration in

the development of this procedural document.

NHS Terms and Conditions of Service 3. Scope 3.1. This policy applies to those members of staff national NHS Pay and Terms

and Conditions of Service that are directly employed by NHS Doncaster CCG and for whom NHS Doncaster CCG has legal responsibility (including those on permanent and temporary contracts). Secondees from NHS organisations will be subject to the policy of their employing organisation

. The CCG will ascertain a fair and consistent approach to applying the Pay

Progression Policy and will give due consideration to employee’s bespoke circumstances when considering a request for pay progression.

Line managers for the purpose of the policy are defined as the senior person responsible for the employee’s management, performance and appraisal.

4. Accountabilities and Responsibilities 4.1. Overall accountability for ensuring that there are systems and processes to

effectively manage pay progression lies with the Chief Officer. Responsibility is delegated to the following:

Associate

Director of HR & Corporate Services

Has delegated responsibility for:

Maintaining an overview of the corporate ratification and governance process associated with the policy

Ensuring relevant training and development is provided via the Learning and Development Team

Leading the development, implementation and review of this policy

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Advising managers and employees on the application of this policy

Appointing

Officers

Have delegated responsibility for:

Ensuring they discuss with the employee their incremental date and schedule the performance development review (PDR) to meet required timescales

Completion of the pay progression form and its submission to Human Resources at the beginning of the month prior to the incremental date to approve pay progression

Ensuring deferment of pay progression is fully discussed with the employee

Objectively completing a PDR in accordance with the PDR policy

Invoking the Managing Performance Policy where performance falls below the accepted levels in an appropriate and timely manner ensuring support is given to the employee to enable them to address the concerns

Ensuring employees are able to undertake mandatory and statutory training

Ensuring they encourage and support employees to achieve the criteria for pay progression

Informing the employee of their right to review

All Staff

Have the delegated responsibility for:

Initiating the process by the completion and submission of the pay progression proforma to their line manager within the specified timescale

Actively participating in the PDR process

Informing their line manager of any organisational constraints that are preventing them from achieving their objectives

Demonstrating that they have achieved a satisfactory level of performance, conduct and achievement of objectives

Ensuring they are fully compliant with mandatory and statutory training requirements

Ensuring they are aware of their pay step date

Staff Side

Representatives

Are responsible for:

Ensuring they are familiar with and understand the policy and procedure

Advising and representing employees who are

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members of a recognised Trade Union

Provide guidance and support to staff members.

Pay Services

Are responsible for:

Processing pay progression requests & deferrals in the specified time scales.

5. Dissemination, Training and Review 5.1. Dissemination

5.1.1. The effective implementation of this policy will support openness and transparency. NHS Doncaster CCG will:

Ensure all staff and stakeholders have access to a copy of this policy via the organisation’s website.

Communicate to staff any relevant action to be taken in respect of pay progression.

Ensure that relevant training programmes raise and sustain awareness of the management of pay progression.

5.1.2. This procedural document is located on the CCG website. A set of

hard copy policies are held by the Governance Team for business continuity purposes and all procedural documents are available via the organisation’s website. Staff are notified by email of new or updated policies.

5.2. Training

5.2.1. All staff will be offered relevant training commensurate with their duties

and responsibilities. Staff requiring support should speak to their line manager in the first instance. Support may also be obtained through their HR Department. This policy should be read in conjunction with:

Managing Performance Policy

Performance Development Review Policy

Disciplinary Policy

Induction, Mandatory and Statutory Training Policy

Sickness Absence Policy

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5.3. Review

5.3.1. As part of its development, this procedural document and its impact on staff, patients and the public has been reviewed in line with NHS Doncaster CCG’s Equality Duties. The purpose of the assessment is to identify and if possible remove any disproportionate adverse impact on employees, patients and the public on the grounds of the protected characteristics under the Equality Act.

5.3.2. The procedural document will be reviewed every three years, and in

accordance with the following on an as and when required basis:

Legislatives changes

Good practice guidelines

Case Law

Significant incidents reported

New vulnerabilities identified

Changes to organisational infrastructure

Changes in practice

5.3.3. Policy management will be performance monitored to ensure that procedural documents are in-date and relevant to the core business of the CCG. The results will be published in the regular Governance Reports.

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SECTION B – PROCEDURE 1. Arrangements for Pay Progression

1.1 A new pay progression system came into place on 1st April 2019 for new

starters and those promoted to a new role on or after 1st April 2019. Promotion means moving to a higher banded role. For existing staff in post up to 31st March 2019 the current CCG pay progression procedures will continue to apply until 31st March 2021 after which time they will also be subject to the new provisions.

More information about the national NHS pay progression arrangements is available on the NHS Employers website at https://www.nhsemployers.org/your-workforce/2018-contract-refresh/pay-progression

Pay progression is the joint responsibility of the employee and the line

manager. The employee’s incremental/pay step date should be discussed during one to one meetings in order for the employee and the line manager to agree the appropriate scheduling of the PDR. Employees will not be routinely informed of their incremental date and are responsible for ascertaining the date themselves. The incremental date can be found on pay slips. Should there be any doubt as to the accuracy of the incremental date advice should be sought from Human Resources. As incremental/pay step progression may occur at any time during the year assessment may be different to the appraisal date.

The process for incremental/pay step progression will need to be initiated at least two months prior to the incremental date. A form to record the pay progression discussion will be completed (Appendix 1). This timescale is to ensure that the line manager has the opportunity to review the employee against the criteria below and, should the increment/pay step be withheld, that Payroll can prevent the pay progression. For example, for an incremental date of 16th December assessment will be initiated by the 16th October. It is the joint responsibility of the manager and the employee to ensure the pay progression discussion takes place in the specified timescale. The HR/ESR service will provide information to managers about the incremental/pay step dates of staff. Also, employees can find their incremental/pay step date on their pay slip. Pay progression is conditional based on the following which may or may not impact upon deferment:

The employee can demonstrate that they have achieved the required level of performance in terms of achievement of objectives and required levels of conduct, values and behaviours as detailed in the Talent Management & Performance Review Policy.

The employee is fully compliant with mandatory and statutory training requirements.

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No disciplinary sanctions have been imposed on the employee in the previous 12 months.

The employee is not on a formal stage of the Managing Performance Policy.

If the employee fails to meet the pay progression criteria as a consequence of

organisational constraints beyond their control this must be evidenced in writing.

This information will be taken into account by the line manager when making a

decision about pay progression and this will be recorded on the Pay Progression

form (Appendix 1).

2. Pay progression that falls within a prolonged period of agreed or

recognised leave

For employees whose incremental date falls within a period of long term sickness, maternity, paternity or adoption leave, or during a secondment, the line manager would consider the 12 month period prior to the commencement of the current episode of leave to make a decision on pay progression. In accordance with the Flexible Working Policy the increment of any employees

during a career break would be frozen until they return to work. If the incremental

/pay step date is imminent on their return to work they should progress to the

next pay point under the same principles set out in 2.1. However, it is

recommended that a review takes place to ensure that their statutory and

mandatory training is up-to-date and recorded as compliant.

3. Band 8C, 8D and Band 9 Employees

For existing staff the process described above will apply for employees on pay bands 8C, 8D and Band 9 until they reach the final two pay points of the pay band. Progression through the last two pay points will be annually earned in the same

way. However failure to meet the accepted criteria set out in paragraph 2.1 may

result in losing an earned increment/pay step. There is no automatic retention of

increment/pay steps on the last two points of the pay band, i.e. for staff in bands

8C, 8D and 9, pay progression into the last two points in the band are annually

earned, and only retained where the appropriate local level of performance is

reached in a given year.

From 1st April 2019 for new and promoted staff in Pay Bands 8c, 8d and 9 up to 10 per cent of basic salary will become re-earnable in the penultimate and final pay points subject to performance as described above. This will become a requirement for all staff in bands 8C, 8D, and 9 from 1st April 2021

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Employees on VSM contracts The performance of employees on VSM contracts will be assessed in the same way as employees on Agenda for Change NHS Terms and Conditions of Service terms and conditions as outlined in this policy. Pay awards for VSM employees will be subject to approval at the CCGs Remuneration Committee

4. Approving a Request for Pay Progression

Pay progression will be conditional upon individuals demonstrating that they have achieved the requisite criteria. The line manager will review the employees performance against the criteria for pay progression in conjunction with Section A & B of the PDR Proforma (Appendix 3). The line manager will need to assure themselves that the employee has not been issued with a disciplinary warning in that rolling 12 month period at the time of the application date and/or have an extant disciplinary warning and is not being managed at a formal stage of the Performance Management policy. If a disciplinary sanction is issued to an employee between the initiation of the pay progression process and their increment/pay step date the line manager will decline the request and use the increment/pay step arrangements to confirm that progression is being deferred. If the employee has not actively participated in an appraisal, has failed to meet the agreed objectives or is not compliant with statutory and mandatory training applicable to their role, pay progression will not be approved. However, if the employee has failed to meet the criteria due to valid organisational constraints beyond their control pay progression will be approved. If the employee has met the criteria for pay progression their increment/pay step will be approved. When approving a request the line manager must complete the form to confirm that they have made the employee aware of the pay progression. If pay progression is withheld, it is imperative that the line manager notifies Payroll via email at the beginning of the month prior to the increment/pay step date to ensure that the timescale is met to prevent the increase for the specified date. For example, for an increment/pay step date due on 16th December, the line manager would notify Payroll to prevent the increment/pay step by the 1st November.

5. Deferment of Pay Progression At the increment /pay step date, any employee remaining non-compliant in any of the areas identified in section 1 or who fails to engage in the process described above will not receive their pay progression. Pay progression will subsequently be deferred for 12 months until the next increment/pay step date. For example, if an employee’s increment/pay step date is 4th October 2019, pay progression will not be considered until 4th October

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2020. If at this stage the employees request for pay progression is approved, it will be paid from that date, no retrospective payments would be due for the previous 12 months. The decision to defer pay progression must have been discussed with the employee prior to any deferment being instigated. The line manager will complete the form to record that increment/pay step pay progression has been deferred for 12 months (Appendix 1) Any individual for whom a pay progression has been deferred must be offered the appropriate support, in plenty of time, in order that they have the fairest opportunity to meet the performance requirements in future. Any decision to prevent pay progression must be brought to the attention of the Associate Director of HR & Corporate Services prior to the decision being confirmed and the increment/ pay step being withheld

6. Right to Review

Where an employee disagrees with the decision to defer pay progression they have a right to request a review of this decision. The review must be requested in writing to their line manager within 7 calendar days of the notification of the original decision. The employee must clearly set out grounds upon which they are requesting the review. The review will be undertaken by a Senior Manager and a Human Resources Representative (the Review Panel). The employee has the right to be accompanied to the review by a work colleague or trade union representative. The employee’s line manager will also be in attendance to provide their rationale for the decision taken. The Review Panel will decide on the basis of the evidence provided by both the employee and the line manager whether pay progression is approved or remains deferred. Where a Review Panel considers that pay progression has been inappropriately deferred the pay progression will be reinstated from the increment/pay step date and retrospective payments made from that date. The employee will be informed of the outcome of their review in writing within 7 calendar days of the date of the meeting. This is the final decision and there will be no further course of redress.

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Appendix 1 - APPLICATION FOR DEFERRAL OF PAY PROGRESSION

Name:

Job Title:

Band:

Incremental Date:

Reason for Deferral of Pay Progression Tick as applicable

The employee is not compliant with all mandatory and statutory training

The employee has not achieved the required level of performance for core behaviours and progress with objectives.

The employee has a current formal disciplinary warnings.

The employee is subject to formal performance management.

Please note any mitigation:

Signed (Line Manager ): ……………………………………………………….. Date: …………………………………………………………………………………

By signing this form I confirm that the employee has been made aware of the outcome of the review, and where appropriate they have been made aware of their right to review. If the decision is to decline the payment of the increment I confirm that I have informed Human Resources of that decision in sufficient time for the pay increment to be withheld.

Signed: ………………………………………………………………….. Date: …………………………………………………………………………………………

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Appendix 2 - PAY PROGRESSION TIMESCALES

Increment/Pay Step Date Increment/ Pay Step Decision PDR to take place

April End January December/January

May End February January/February

June End March February/March

July End April March/April

August End May April/May

September End June May/June

October End July June/July

November End August July/August

December End September August/September

January End October September/October

February End November October/November

March End December November/December

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Appendix 3 – APPLICATION FOR PAY PROGRESSION

Section 9: Application for pay progression (complete Parts A & B)

Part A – Employee Declaration

I confirm that: Yes/No?

All mandatory and statutory training is up to date and recorded as compliant.

I have achieved the required level of performance for core behaviours and progress with objectives.

I have no current formal disciplinary warnings.

I am not subject to formal performance management.

Please note any mitigation: Signed (Employee): Date:

Part B - Line Manager Declaration

I confirm that: Yes/No?

Comments?

The employee has met the pay progression criteria and should progress to the next increment.

The employee has failed to meet the required criteria for pay progression but there are organisational constraints beyond their control that have prevented the achievement of this and will therefore progress to the next increment. Please detail the reasons for this.

The employee is currently on maternity/adoption leave or a secondment or on long term sickness absence and has been assessed on their performance over the 12 months prior to their current period of leave and will progress to the next increment. Please detail the reason for absence.

The employee has failed to meet the criteria for pay progression and there are no valid organisational constraints that have prevented this and therefore pay progression is declined.

Pay Bands 8c, 8d and 9 on the final two points of the pay band only: The request for pay progression has been declined and the employee’s pay will reduce to the previous pay point.

By signing this form I confirm that the employee has been made aware of the outcome of the review, and where appropriate they have been made aware of their right to review. If the decision is to decline the payment of the increment I confirm that I have informed Human Resources of that decision in sufficient time for the pay increment to be withheld.

Signed (Line Manager): Date:

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Appendix B – Equality Impact Assessment

Subject of equality analysis

Pay Progression Policy

Type

Tick

Policy √

Strategy

Business case

Commissioning service redesign

Contract / Procurement

Event / consultation

Owner Name: Lisa Devanney

Job Title: Associate Director of HR & Corporate Services

Date November 2019

Assessment Summary

Give a brief summary of the area you are assessing: Update and review of the CCG Pay Progression Policy in line national legislation & Agenda for Change Pay Award and Terms and Conditions. EIA reviewed simultaneously to assess the impact of the amendments and identify potential action required

Stakeholders

Tick

Staff √

General public

Service users

Partners

Providers

Other

Data collection and consultation

What data is available to you to support your analysis? Has there been any consultation to inform your analysis? Policy has been written in line with national NHS Policy which was updated to include financial abuse. These have been agreed following review and consultation at NHSE/NHSLA. The policy has been consulted on locally and reviewed at the CCG Joint Consultative Committee which is attended by Union Representatives.

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Protected characteristic

Positive Neutral Negative Negative: What are the risks? Positive: What are the benefits / opportunities?

Age

X

Disability

X

Gender

X

Race

X

Religion & Belief

X

Sexual Orientation

X

Gender reassignment

X

Pregnancy & Maternity

X

Marriage & Civil Partnership

X

Social Inclusion / Community Cohesion

X

Conclusion &

Recommendations

including any

resulting action plan

The policy is applicable to all employees and adheres to NHSLA

Standards, statutory requirements and best practice and makes all

reasonable provision to ensure equity of process for all employees

therefore the impact is considered neutral in that no individual from any

protected characteristic gains a positive or suffers a negative impact on

the basis of that characteristic.

Review date August 2022

Please return the Equality Analysis Form to the Corporate Governance Manager:

[email protected]

mailto:[email protected]

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