Agenda and minutes

No apologies of absence were received.

To receive declarations of disclosable pecuniary and other interests from Members in respect of any item to be considered at the meeting.

No Declarations of Interests were received.

To approve the minutes of the meeting of the Employment Committee held on 24 July 2024 as published.

That the minutes of the meeting of the Employment Committee held on 24 July 2024, be approved and signed as a true and correct copy.

To consider any business that the Chairman rules may be dealt with under Section 100B(4) of the Local Government Act 1972.

There were no items of Urgent Business.

Reporting Person: Amanda Jeffrey, Head Of Human Resources

The Pay Principles report for 2024/25 was received by members.  The report sets out proposed, revised principles for an inflationary staff pay award, and the approach to pay progression from April 2025 subject to affordability.

The Council’s financial position meant that it was unable to make further provision in the budget for a pay award or pay progression for 2024/25 resulting in no pay award for any employee paid above the Real Living Wage.  The decision-making process leading to the annual pay award and individual pay progression have been under consideration.

The following Pay Principles were suggested:

·         That the Council align with the National Employers formal collective agreement pay award for local government service employees; and

·         The Council to review the Councils Performance Development Review process so that it recognises staff performance and better supports performance-based progression through pay scales.

If the principles were to be adopted, the Council would keep pace with the nationally agreed awards for local government and employees would see a rise in pay as they grow and develop in their job. It was noted that the Council operates in a competitive market to attract and retain a skilled workforce and it is therefore important that the Council addresses these issues proactively.

Following a query raised on flexible benefits, it was reported that Council offers employees a flexible benefit scheme which is paid in monthly instalments.  The flexible benefits amount increases with salary grades.  The flexible benefits can be used to purchase a car park season ticket, as a contribution to a leased car can or taken as a cash alternative.  A job vehicle allowance is paid to employees who are required to drive on Council business or with seniority.

Following the decision not to make a provision for a pay award or pay progression for April 2024, it is felt that a commitment to employees on the Council’s approach to pay for 2025/26 is needed.  The aim is to provide some reassurance that the Council has empathy with the disappointment felt across the organisation, particularly following the re-structuring which drew to a close in March 2024.

It was also noted that skilled staff were in demand and the Council needed to be far more creative  in attracting applicants to apply for roles.

It was recognised that not to award a pay increase  in 2025/26 would have a detrimental  impact on staff morale, retention and recruitment and ultimately performance and service delivery.

Members of the committee agreed to the proposed recommendations.

            RESOLVED:

That the revised pay award and pay progression principles were noted and agreed.

Reporting Person: Amanda Jeffrey, Head of Human Resources

Amanda Jeffrey introduced the report on Duty on Employers to Prevent Sexual Harassment in the Workplace.  The committee was informed on the new Worker Protection Act (amendment of Equality Act) Act 2023, which introduced a new requirement for employers to take reasonable steps to prevent sexual harassment in the workplace. The obligation ensures that employers not only react to incidents after they occur but also take preventive measures to avoid them.  The Council is required to implement policies, training and systems aimed at preventing sexual harassment before it occurs. 

The impact on compensation for sexual harassment claims is unlimited, meaning the 25% penalty could significantly increase the compensation awarded in a successful claim.  In addition, the Equality and Human Rights Commission will be able to take enforcement action against organizations that breach the new duty law.  As such actions are public, this could cause significant reputational harm.

The new draft policy will be presented to members at the next Employment Committee.

The chair suggested that all Councillors to be included in the staff training on the Prevention of Sexual Harassment.

Following a request regarding reports of Sexual Harassment incidents, Officers stated that no formal complaints had been reported. However, this did not mean that incidents did not happen.  The Council has a policy that guides employees on what to do if they believe they are being harassed, whether this be sexual harassment or otherwise.

The steps required to comply with the new duty are expected to be in place by the New Year, if not earlier.

RESOLVED:

To note the new duty and steps the Council is implementing in order to comply.

Reporting Person: Amanda Jeffrey, Human Resources

·         Report to follow

Amanda Jeffrey updated the committee on the Impact of Living Wage and Employer National Insurance Contributions report.  The report included the increase in the Living Wage and Employer National Insurance Contributions (NIC) and the impact it would have on the Council.

From April 2025, employers' NICs will rise by 1.2%, with the secondary threshold expecting to decrease, meaning NICs will be paid on earnings from £5,000 instead of £9,200. This change will increase the Council's NI costs from 13.8% to 15%, with the reduced threshold estimated to cost £279,000. The National Living Wage for 2025/26 will be £12.21 per hour for over 21s, a 6.7% rise.

The Council has 27 employees on the lowest pay point, pay grade W1 within the pay scheme.  Should the Council increase this by the National Living Wage the cost per annum would be approximately £4,850.  However, if the Council is to continue to implement the Real Living Wage this increase would cost approximately £13,850 per annum.

Following a query, it was noted that the government has stated that public sector bodies will be reimbursed for the additional cost incurred due to the NIC changes, but the details are still unknown. Officers were unsure when and how the reimbursement for the additional NI contributions would occur. 

Additional consultation with UNISON will need to take place if the Council decides not to implement the Real Living Wage from April 2025.

            RESOLVED:

            That the report be noted.