Policy on awarding additional payments

1.1 There will be occasions when, in order to ensure the delivery of an efficient and effective service, employees will be required to undertake additional duties and responsibilities and/or to work reasonably beyond their normal contractual hours.

1.2 In certain circumstances, employees may be awarded an additional payment in recognition of this extra work. This policy sets out the different types of additional payment which managers, in consultation with human resources, may award and the criteria which must be met in order for each type of payment to be made.

1.3 Arrangements for employees to undertake additional duties and responsibilities (such as acting up), should be short term and up to a maximum of one year. Where the requirement is likely to exceed one year, alternative arrangements will need to be made. For example, a secondment or a fixed term contract.

2.1 This policy applies to all employees of the council with the exception of the Chief Executive

2.2 In relation to schools, this policy applies to community maintained schools where employees’ terms and conditions are set with respect to the National Joint Committee (Green Book) terms and conditions.

2.3 Voluntary aided maintained schools, where the governing body of the school is the employer of staff, may adopt this policy and related guidance at their discretion. 

3.1 Line managers must consult their relevant HR Business Partner/HR Advisory contact before awarding any additional payment under this policy. This is to ensure that payments are made only where the employee meets the specified criteria and are applied consistently and fairly to employees across the council. 

4.1 Where a manager identifies a need for employees to act-up into a higher-graded post or to undertake additional duties or a project outside the scope of the employee's contract of employment, it is important that the selection process is handled fairly.

4.2 The opportunity to act up must be advertised to the appropriate group(s) of staff within the section/department. Line managers must seek advice from Human Resources on how to do this.

4.3 If more candidates express an interest than is required, an interview process will need to be completed. 

Eligibility

5.1 An employee is entitled to receive an acting-up allowance when they are asked to provide temporary cover for a higher-graded post, for a period of four consecutive weeks or more.

Examples of situations where an acting up arrangement may be required:

• the postholder is absent for any reason other than annual leave
• the post is vacant and there is a need to maintain continuity of work until the post can be filled

5.2 An acting up allowance is payable only where the targets and performance levels within the section continue to be maintained.

5.3 An acting-up allowance should not be awarded to employees for additional duties carried out at the same or lower grades as these would constitute an increase in volume of work rather than in complexity or level of responsibility. In these circumstances, it would be more appropriate to consider paying overtime (if the employee qualifies) or granting the employee compensatory time off in lieu.

5.4 However, where the additional duties are significant and outside the scope of the employee’s existing contract of employment, then payment of a discretionary honorarium may be justified (see section 6 below).

Calculation of the allowance

5.5 The acting-up allowance is calculated on the basis of the difference between the basic salary which would apply if the employee were to be promoted to the higher graded post (normally the minimum point of the scale) and the employee’s existing basic salary.

5.6 The full acting-up allowance will be payable only where the full duties and responsibilities of the higher-graded post are being undertaken.

5.7 In cases where two or more employees are jointly undertaking the full duties and responsibilities, the allowance should be calculated on an individual basis and weighted according to the number of hours/weeks/months each individual spends covering the higher-graded post. The full acting-up allowance cannot be paid to more than one employee in respect of the same period of cover.

5.8 Where an employee is undertaking a proportion only of the full duties and responsibilities, authorised managers may award one of three levels of payment only, in other words 25%, 50% and 75% of the full allowance (please see guidance notes).

Authorisation and payment of the acting up allowance

5.9 Payments should be agreed by the line manager in consultation with the relevant Business Partner/HR Advisory contact and Head of Service, before they are awarded.

5.10 On receipt of the employee’s formal acceptance of the acting-up arrangements, the line manager completes an online staff amendment form for approval by the budget holder and accountant.

5.11 Once approved, the required changes will be made by Payroll so that payment can be made to the employee.

5.12 Where an extension to an acting up arrangement is sought, the approval workflow is extended to include the HR Advisory team. 

5.13 The acting-up allowance will not be paid until the employee has completed four, consecutive weeks in the “acting-up” role. It will be paid in monthly instalments together with salary.

5.14 The acting-up allowance may continue to be paid during short periods when the employee acting-up is absent due to sickness or leave. However, should the employee’s absence be for a continuous period of more than two weeks due to sickness, leave (including maternity, parental, or adoption leave) etc. then the acting-up allowance will cease automatically and will not become payable again until the employee returns to work and assumes the higher-level duties. It is the responsibility of the employee’s line manager to notify Payroll of any absences or other relevant information which might require the payment to be re-calculated, suspended or terminated.

5.15 Payroll will not process a payment where the payment either does not meet the required criteria or has not been calculated in accordance with the provisions set out in this policy.

Termination of the allowance

5.16 The acting-up allowance is paid to an employee on the understanding that they are actively undertaking the higher-level duties.

5.17 The line manager can terminate the acting-up arrangements and payment of the allowance where there are concerns over the employee’s performance, conduct and/or attendance during the acting-up period.

5.18 Payment of an acting-up allowance would also cease where it is necessary for a line manager to authorise another employee to undertake the acting-up duties. 

Eligibility

6.1 A discretionary honorarium payment may be made where an employee is required by management to undertake exceptional work of a temporary and nonrecurring nature outside the scope of their contract of employment.

6.2 The appropriate level of authorisation must be obtained before the work commences and before confirmation and detail of any payment is made to the employee.

Examples of situations where a discretionary honorarium payment may be made: 

• an employee making a significant contribution to a substantial one-off special project beyond that normally expected in the course of their normal duties
• an employee achieving required business/service objectives despite exceptionally difficult circumstances over a period of at least three consecutive months, for example, significant staff shortages due to illness or unforeseen vacancies in the employee’s section and where the employee:
  • is not entitled to receive payment in respect of overtime under their contract of employment
  • cannot be granted compensatory time off in lieu, either at the time the extra hours are worked or at any future date, because the absence cannot be accommodated within the needs of the service and
  • such work is deemed to be outside the scope of the employee’s contract of employment and they have received no other payment in recognition of the additional hours worked

6.3 Honorarium payments should not be awarded where, having regard to the size of the project, it would be more appropriate to create a temporary post to undertake the additional work.

6.4 Honorarium payments must not be used to reward employees who have worked additional hours and/or undertaken extra duties, which would be considered to fall within the scope of the employee’s contractual obligation to meet the demands of the service. In these circumstances it would be more appropriate to consider paying overtime (if the employee qualifies) or granting the employee compensatory time off in lieu.

Calculation of the honorarium

Additional duties/project work evaluated at the same grade as the employee’s substantive post

6.5 The payment should be equivalent to the average value of one salary increment within the grade of the employee’s post.

6.6 The resulting “full-year” figure should then be proportioned according to the duration of the additional work/project or the number of weeks the employee has been working the additional hours.

Additional duties/project work evaluated at a higher grade than the employee’s substantive post

6.7 Manage as an ‘acting up’ situation. See the acting up allowances section for further details. 

Authorisation and payment of the honorarium

6.8 Honorarium payments must be authorised by the Executive Leadership Team (ELT), in addition to the relevant tier approvers as follows:

• the relevant HR Manager and Head of Service (for all employees below Head of Service level) and the Executive Director
• the relevant HR Manager and the Assistant Director (for employees at Head of Service level) and the Executive Director
• the relevant HR Manager and the Chief Executive (for employees at Director level)

6.9 The discretionary honorarium will be made as a ‘once and for all’ payment either on the satisfactory completion of the additional work/project or when the employee finishes undertaking the additional hours.

6.10 The council reserves the right to reduce the level of the payment where an employee’s actual personal contribution to the additional work/project has been significantly reduced from the level originally envisaged.

6.11 Payroll will not process a payment where the payment either does not meet the required criteria or has not been calculated in accordance with the provisions set out in this policy.

Eligibility

7.1 A line manager in consultation with their Director/Head of Service and Human Resources, has the discretion to award an employee up to a maximum of two additional salary increments, within their salary scale, in recognition of exceptional performance.

7.2 The employee’s work performance must meet one or more of the following criteria to qualify:

• consistent performance of high quality work over and above that normally expected of the postholder for a period of at least six months
• consistent performance of work of the same level and quality as employees at a higher salary point on the grade
• performance of work to such a high standard that little supervision is required in circumstances where there would usually be a strong supervisory element

7.3 The award of accelerated increment(s) must only be made in exceptional circumstances. It must not be used to recognise exceptional work of a temporary and non-recurring nature (see guidance notes).

Approval and payment of accelerated increments

7.4 Payment must be agreed by the line manager in consultation with their Director/Head of Service and Human Resources.

7.5 It is processed via the online staff amendment form with approval from the budget holder and accountant. On receipt of an authorised online staff amendment form, the necessary changes will be made by Payroll.

Notification to the employee

7.6 The employee will be issued with an ‘amendment to contract letter’ by Business Operations, detailing the accelerated salary progression, approved by the budget holder.

7.7 The Business Operations team will put a copy of the letter on the employee’s personal file. 

Employees undertaking additional duties

8.1 Under the terms of their contracts of employment, all Brighton & Hove City Council employees can be required by management to undertake, from time to time, duties additional to their normal duties in order to meet the demands of the service.

8.2 Where such duties are considered reasonable and appropriate to the grade and general character of the work for which they are employed, the employee is not entitled to receive any additional payment in recognition of undertaking the additional work (see guidance notes).

8.3 If the additional duties are significant and deemed to be outside the scope of the employee’s contract of employment payment of a discretionary honorarium may be justified (see Section 6 “Discretionary Honorarium Payment” above).

Employees working additional hours

8.4 Employees may, on occasions, be required to work additional hours to their normal contractual working hours, in order to meet the demands of the service arising from emergencies, increase in work volume or from the occasional need to cover for absences. 

8.5 Whether such additional hours would qualify for payment is dependent upon the grade of the employee’s post. Please refer to the guidance notes for the rules governing such payments.

9.1 HR Business Partners/HR Advisory contacts are responsible for monitoring the award of all additional payments to employees under this policy.

9.2 This is to ensure that these provisions are being appropriately and consistently applied both within and between teams and departments.

9.3 HR Business Partners/HR Advisory contacts provide a six-monthly report to their Departmental Management team (DMT). This provides information on the acting-up allowances, honorarium payments and instances of accelerated incremental progression awarded to employees in their directorate.