1. Introduction

The Pay Policy Statement sets out the Council’s policy relating to the pay of its workforce excluding school-based employees.

2. Scope and Definitions

Where this policy refers to senior executives, this means the Chief Executive, Directors, Deputy Directors and the Monitoring Officer.

Where the policy refers to the Council’s lowest paid staff, this means those that are paid on the lowest established grade and scale point i.e. Bexley 01, point 03. This reflects the lowest salary payable under the Council’s job evaluation scheme and grading structure.

3. Pay and grading structure

The Council will determine the appropriate grade for each job in accordance with either the Greater London Provincial Council (GLPC) Job Evaluation Scheme or the Hay Job Evaluation Scheme depending upon the job requirements and the level of responsibility of its employees within the organisation. The GLPC scheme considers posts graded Bexley 01-09 and the Hay scheme is used for posts graded Bexley 10-27.

The salary on which staff will be paid will be the rate taken from a salary scale consisting of 27 Bexley grades covering the majority of staff. Separate Hay salary scales apply to grades within Legal, Valuers and Children’s Services where rates have been enhanced to attract and retain key staff. These scales are reviewed regularly.

The Council employs a small number of staff on other grades and terms and conditions of employment. These include Soulbury and Youth and Community workers, and staff who have retained their terms and conditions following transfers into the authority, for example staff on NHS terms and conditions. A small number of staff are employed centrally on Teachers’ terms and conditions.

The scale point within a grade on which an individual will be appointed will depend upon their relevant skills and experience.

View Bexley Salary Scales.

4. Annual pay reviews

Bexley grades will be reviewed annually as follows:

(a) Hay grades - Bexley10-27 (including specialist grades and senior executives):

The pay award for this group will reflect the award of the National Joint Council for Local Government Services (NJC) and the Greater London Provincial Council (GLPC).

Any increase in grade rates will be payable from 1 July each year.

(b) Non-Hay Grades (including lowest paid)

Staff employed on Bexley grades 01-09, are employed in accordance with the National Collective Agreement on Pay and Conditions of Service of the National Joint Council for Local Government Services (NJC) and Greater London Provincial Council (GLPC).

Staff employed under Soulbury, Youth and Community, and Centrally Appointed Teachers terms and conditions are similarly employed on pay rates determined by their respective national collective agreements.

Pay for non-Hay staff will be determined nationally and any increase will be payable with effect either from 1 April (NJC) or 1 September (for Soulbury, Youth and Centrally Appointed Teachers).

Where staff have transferred to the Council under the Transfer of Undertakings (Protection of Employment) (TUPE) Regulations 2014, and their overall terms and conditions are more favourable than comparative Council rates the transferred terms will remain in place with salary rates fixed at the point of transfer. At the point where the Council’s comparative pay and terms and conditions are no less favourable then the transferred terms, staff transferred under TUPE are offered the opportunity to move to Council terms.

5. Performance-related pay - incremental progression

The Council’s appraisal and performance related pay arrangements are contained in the Bexley Performance, Wellbeing & Development Scheme agreed by General Purposes Committee in July 2021 and concluded with the Council’s recognised trade unions in 2022. This scheme applies to senior executives and other staff, including the lowest paid.

Incremental progression within pay grades under the Scheme until the maximum point of the grade is reached is by annual incremental progression subject to performance being deemed to be at least “Good” overall (categorised as a rating of 3 or 4 overall).

Recommendations for awards under the Performance Management Scheme for posts:

• below Director level - will be subject to review by the Council’s Corporate Leadership Team to ensure that the Scheme is being applied consistently. The review will take account of the progress of the Council as a whole in delivering its objectives, the Council’s financial position and other relevant circumstances
• Chief Executive and Directors - will be subject to approval by the Top Management Review Panel

Incremental awards earned under this Scheme will be payable with effect from 1 August.

This Scheme does not apply to employees on Teachers or Soulbury terms and conditions for whom national terms and conditions apply.

6. Additional payments and allowances

There are a range of other payments and allowances payable such as market premium, salary protection, car allowances, overtime, additional hours, standby/call-out payments and retention bonuses for key staff.

Payments and allowances will be reviewed in accordance with either national or local pay awards or as otherwise agreed by the General Purposes and Audit Committee where appropriate.

View Local Allowances and Rates.

7. Pensions

The Council employs staff who are eligible to join the Local Government Pension Scheme, Teachers Pension Scheme and the NHS Pension Scheme. The Council will provide pensions and benefits in accordance with the rules of each Scheme and the decisions taken on delegated provisions for the LGPS and Teachers Schemes will be agreed by General Purposes and Audit Committee or Pensions Committee.

View Decisions of Pension Discretions.

8. Elections fees

The Chief Executive (CE) has separate employment, both as the Council’s Electoral Registration Officer (ERO) and as the Council’s Returning Officer (RO), Acting Returning Officer (ARO), or Borough Returning Officer (BRO), depending on the individual election franchise being delivered. The arrangement of payment of such fees depends on which election franchise is being delivered by the Council.

Fees are paid to the CE (for undertaking the role of ARO) at rates agreed by the Government, whenever UK Parliamentary General or By-Elections occur. Fees for these franchises will be determined, using the pan-London rates, agreed annually by London Councils and all fees/charges are fully reimbursable from the Cabinet Office. These fees do not constitute a cost to the Council. The role of RO is undertaken by the Council’s incumbent Mayor - a role for which the Mayor is not paid.

The GLA Elections differ in that the role of lead Constituency Returning Officer (CRO) for Bexley & Bromley sits with LB Bromley. Bexley is required to appoint a Borough Returning Officer (BRO), who will support the CRO in the delivery of the election franchises for Bexley & Bromley. Fees for the GLA franchises will be determined and fully reimbursed by the GLA. These fees do not constitute a cost to the Council.

For local Borough and Council By-Elections, the entire costs are met by the Council. Undertaking the role of RO at the election of Borough Councillors will not result in the payment of an additional fee to the CE.

The role of RO, ARO, or BRO at national and pan-London elections, is independent of the Council and the fees paid recognise that the CE, in undertaking the RO/ARO/BRO Role, will ensure that the elections are administered effectively. The RO/ARO/BRO is directly accountable to the Courts as an independent statutory office holder – Representation of the People Act 1983, as amended.

The RO/ARO/BRO will be responsible for determining the fees payable to other officers, including those paid to senior executives, for all other election duties.

9. Pay comparisons

The Council’s pay and grading structures reflect job requirements and the level of responsibility within the organisation. The pay and grading of employees will be determined by the job evaluation schemes adopted by the Council or, for small groups of staff, other nationally agreed schemes as applicable. The Council’s pay and grading for the lowest paid staff (and all pay grades to Bexley 09) is governed by National Collective Agreement on Pay and Conditions of Service of the National Joint Council for Local Government Services and the Greater London Provincial Council.

The pay ratio demonstrating the relationship between the Council’s highest paid employee and the median earnings figure of the workforce (excluding schools staff and casual workers) is 6:1 as at 31 March 2022.

The Council’s pay ratio is based on the full time equivalent salary and the full time equivalent of all elements of remuneration that can be valued, e.g. all taxable earnings for the given year including base salary, variable pay, bonuses, allowances and the cash value of any benefits in kind - excluding pension benefits. It incorporates those employees on Bexley grades 1-27, specialist Hay grades e.g., Children’s Social Workers, Valuers and Legal, and those whose grade has been established using nationally agreed schemes. The pay ratio excludes schools-based staff and casual workers.

The Council will have regard to its pay ratio, balancing the need to encourage the employment of staff at the lower end of the pay scale whilst appropriately rewarding responsibility, valuable knowledge, skills and experience at the higher end. The Council will keep its pay ratio under careful review.

10. Appointment of Senior Executives

(a) Direct Employment

All senior executives will be appointed by the Members Staffing Panel in accordance with agreed procedures.

(b) Appointment via a Contract for Services

The Council will not normally appoint a senior executive via a contract for services rather than under a direct contract of employment. Where unable to recruit under a direct contract of employment, or there is a need for interim support to provide cover for a vacant senior executive post, the Council may consider engaging individuals under a contract for service. This will be managed in accordance with the Council’s financial regulations and procurement process to ensure that the Council is able to demonstrate the maximum value for money in securing the relevant service.

Where a senior executive is appointed under a contract for services the Council will publish this information alongside other relevant data.

(c) Appointments where the salary package exceeds £100,000

In accordance with the salary scales and terms and conditions of employment that have been agreed by the General Purposes and Audit Committee, the Council’s pay and grading structure provides for its senior executives a salary package that may exceed the sum of £100,000 on appointment. This sum is the threshold identified in the supplementary guidance issued in February 2013 under ‘Openness and Accountability in Local Pay: Guidance issued under Section 40 of the Localism Act 2011’.

The current arrangements for determining pay on appointment are sufficiently robust and transparent. In order to avoid delay, therefore, or place an appointment at risk, full Council, through its annual approval of this Pay Policy Statement, fully authorise the appointment of senior executives on the salary scales and terms and conditions that are in accordance with the Council’s standard contract of employment and agreed arrangements for remuneration.

11. Compensation for loss of office

(a) Financial Terms for Redundancy and Early Termination

The Council will operate its financial terms for redundancy and early termination for all staff, including senior executives, who leave the Council on the grounds of redundancy or business efficiency subject to certain qualifying conditions.

These terms are reviewed annually by the Pensions Committee to ensure that they remain workable, affordable and reasonable.

Any changes to relevant regulations and pension scheme rules will be incorporated into and where relevant amend the Council’s financial terms as appropriate.

View Financial terms for redundancy and termination (PDF).

(b) ill-health

Where employment ends as a result of ill-health, payments will be made in accordance with the contract of employment. In addition, pension may be payable in accordance with the relevant pension scheme rules.

(c) Negotiated Exit Settlements

Statutory guidance issued by the Department for Levelling Up, Housing and Communities was published on 12 May 2022. The guidance applies to local authorities and sets out the circumstances where special severance payments (payments outside of statutory, contractual or other requirements) may be paid to an employee employment in public service. View the Statutory guidance.

Any exit payments made will be subject to the provisions and authorisation set out in the guidance.

12. Re-employment of Senior Executives and effect on pension payments

(a) Redundancy or Efficiency Retirement - recovery of payments

On redundancy or business efficiency termination, the Council will recover discretionary severance payments if an employee begins alternative employment with any employer within 4 weeks of the date of termination.

(b) Re-employment of Senior Executives

The Council will not usually re-employ senior executives who have received redundancy or severance payments from the Council. Should a former senior executive subsequently be considered for re-appointment by the Members Staffing Panel, the Panel will be advised if the officer received such payments and/or is in receipt of pension benefits. In the event of the individual’s appointment, the Council will publish this information alongside other relevant data.

(c) Abatement of pension payments

The arrangements in relation to the abatement of pensions payments in respect of the re-employment of pensioners is currently suspended. This decision was taken as urgent action by the Chairman of Pension Committee in response to the commencement of the COVID-19 pandemic in 2020 and the announcement by the Government of its intention to encourage retired Health and Social Care workers (among others) back to work to help assist with the Coronavirus crisis.

The intention of the suspension of the abatement of pension payments was to ensure that anyone returning to work should not suffer any impact on their public service pension. As a result of the decision, the abatement provision has remained suspended from 1 March 2020 and is subject to further review.

The suspended abatement policy affected the re-employment of pensioners up to age 60. If a pensioner from the Bexley Pension Fund was re-employed by any local authority or an organisation where they have access to the Local Government Pension Scheme their pension was reduced by the amount that their pension, plus their new salary, exceeds their previous final salary. Under the relevant Scheme rules, Bexley’s abatement policy was not applied to pensioners who became self-employed or who were not eligible to join the Local Government Pension Scheme in their new employment.

In the event that an employee is dismissed as a result of a criminal, negligent or fraudulent act, the Council reserves the right to apply to the Secretary of State to determine whether the individual’s pension rights should be forfeited.

(d) Flexible Retirement

The Council may allow flexible retirement within the rules of the Local Government Pension Scheme. This allows an individual aged 55 and over to draw some or all of their pension if they reduce their hours or grade subject to due consideration to the impact on business and service delivery. Reductions to benefits will apply in accordance with the Scheme. Flexible retirement requests for senior executives must be approved by Members.

View Decisions of Pension Discretions and Financial terms for redundancy and termination (PDF).

13. Publication and access to information relating to the remuneration of Senior Executives

The Council will publish information relating to remuneration of senior executives in accordance with the Local Government Transparency Code 2015 and relevant guidance. This data will be published on the Council’s website subject, where appropriate, to each individual providing their consent.

View Senior Executives job description.

1. Introduction

The Pay Policy Statement sets out the Council’s policy relating to the pay of its workforce excluding school-based employees.

2. Scope and Definitions

Where this policy refers to senior executives, this means the Chief Executive, Directors, Deputy Directors and the Monitoring Officer.

Where the policy refers to the Council’s lowest-paid staff, this means those that are paid on the lowest established grade and scale point i.e. Bexley 01, point 03.  This reflects the lowest salary payable under the Council’s job evaluation scheme and grading structure.

3. Pay and grading structure

The Council will determine the appropriate grade for each job in accordance with either the Greater London Provincial Council (GLPC) Job Evaluation Scheme or the Hay Job Evaluation Scheme depending upon the job requirements and the level of responsibility of its employees within the organisation. The GLPC scheme considers posts graded Bexley 01-09 and the Hay scheme is used for posts graded Bexley 10-27.

The salary on which staff will be paid will be the rate taken from a salary scale consisting of 27 Bexley grades covering the majority of staff.  Separate Hay salary scales apply to grades within Legal, Valuers and Children’s Services where rates have been enhanced to attract and retain key staff.  These scales are reviewed regularly.

The Council employs a small number of staff on other grades and terms and conditions of employment.  These include Soulbury and Youth and Community workers, and staff who have retained their terms and conditions following transfers into the authority, for example, staff on NHS terms and conditions.  A small number of staff are employed centrally on Teachers’ terms and conditions.

The scale point within a grade on which an individual will be appointed will depend upon their relevant skills and experience.

View Bexley Salary Scales.

4. Annual pay reviews

Bexley grades will be reviewed annually as follows:

(a) Hay grades - Bexley10-27 (including specialist grades and senior executives):

The pay award for this group will reflect the award of the National Joint Council for Local Government Services (NJC) and the Greater London Provincial Council (GLPC).

Any increase in grade rates will be payable from 1 July each year.

(b) Non-Hay Grades (including lowest paid)

Staff employed on Bexley grades 01-09, are employed in accordance with the National Collective Agreement on Pay and Conditions of Service of the National Joint Council for Local Government Services (NJC) and Greater London Provincial Council (GLPC). Annual pay awards are reviewed nationally each year and reflect a number of considerations including:

• Ability to pay
• Inflation levels
• The ‘going rate’ of other pay awards
• Recruitment and retention issues.

Similar considerations apply to staff employed under Soulbury, Youth and Community, and Centrally Appointed Teachers terms and conditions and whose pay is determined by national collective agreement.

Pay for non-Hay staff will be determined nationally and any increase will be payable with effect either from 1 April (NJC) or 1 September (for Soulbury, Youth and Centrally Appointed Teachers).

Where staff have transferred to the Council under the Transfer of Undertakings (Protection of Employment) (TUPE) Regulations 2014, and their overall terms and conditions are more favourable than comparative Council rates the transferred terms will remain in place with salary rates fixed at the point of transfer. At the point where the Council’s comparative pay and terms and conditions are no less favourable than the transferred terms, staff transferred under TUPE are offered the opportunity to move to Council terms.

5. Performance-related pay - incremental progression

The Council’s appraisal and performance-related pay arrangements are contained in the Bexley Performance, Wellbeing & Development Scheme agreed by General Purposes Committee in July 2021 and concluded with the Council’s recognised trade unions in 2022.  This scheme applies to senior executives and other staff, including the lowest paid.

Incremental progression is only possible under the Scheme where performance is deemed to be Good overall as defined by the Scheme.

Recommendations for awards under the Performance Management Scheme for posts:

• below Director level - will be subject to review by the Council’s Leadership Team to ensure that the scheme is being applied consistently.   The review will take account of the progress of the Council as a whole in delivering its objectives, the Council’s financial position and other relevant circumstances
• Chief Executive and Directors - will be subject to approval by the Top Management Review Panel

Awards earned under this Scheme will be payable with effect from 1 August.

This scheme does not apply to employees on Teachers or Soulbury terms and conditions for whom national terms and conditions apply.

6. Additional payments and allowances

There are a range of other payments and allowances payable such as market premium, salary protection, car allowances, overtime, additional hours, standby/call-out payments and retention bonuses for key staff.

Payments and allowances will be reviewed in accordance with either national or local pay awards or as otherwise agreed by the General Purposes and Audit Committee where appropriate.

View Local Allowances and Rates.

7. Pensions

The Council employs staff who are eligible to join the Local Government Pension Scheme, Teachers Pension Scheme and the NHS Pension Scheme.   The Council will provide pensions and benefits in accordance with the rules of each Scheme and the decisions taken on delegated provisions for the LGPS and Teachers Schemes will be agreed by General Purposes and Audit Committee or Pensions Committee.

View Decisions of Pension Discretions.

8. Elections fees

The Chief Executive (CE) has separate employment, both as the Council’s Electoral Registration Officer (ERO) and as the Council’s Returning Officer (RO), Acting Returning Officer (ARO), or Borough Returning Officer (BRO), depending on the individual election franchise being delivered. The arrangement of payment of such fees depends on which election franchise is being delivered by the Council.

Fees are paid to the CE (for undertaking the role of ARO) at rates agreed by the Government, whenever UK Parliamentary General or By-Elections occur. Fees for these franchises will be determined, using the pan-London rates, agreed annually by London Councils and all fees/charges are fully reimbursable from the Cabinet Office. These fees do not constitute a cost to the Council.  The role of RO is undertaken by the Council’s incumbent Mayor – a role for which the Mayor is not paid.

The GLA Elections differ in that the role of lead Constituency Returning Officer (CRO) for Bexley & Bromley sits with LB Bromley. Bexley is required to appoint a Borough Returning Officer (BRO), who will support the CRO in the delivery of the election franchises for Bexley & Bromley. Fees for the GLA franchises will be determined and fully reimbursed by the GLA. These fees do not constitute a cost to the Council.

For local Borough and Council By-Elections, the entire costs are met by the Council. Undertaking the role of RO at the election of Borough Councillors will not result in the payment of an additional fee to the CE.

The role of RO, ARO, or BRO at national and pan-London elections, is independent of the Council and the fees paid recognise that the CE, in undertaking the RO/ARO/BRO Role, will ensure that the elections are administered effectively. The RO/ARO/BRO is directly accountable to the Courts as an independent statutory office holder – Representation of the People Act 1983, as amended.

The RO/ARO/BRO will be responsible for determining the fees payable to other officers, including those paid to senior executives, for all other election duties.

9. Pay comparisons

The Council’s pay and grading structures reflect job requirements and the level of responsibility within the organisation.  The pay and grading of employees will be determined by the job evaluation schemes adopted by the Council or, for small groups of staff, other nationally agreed schemes as applicable. The Council’s pay and grading for the lowest-paid staff (and all pay grades to Bexley 09) is governed by National Collective Agreement on Pay and Conditions of Service of the National Joint Council for Local Government Services and the Greater London Provincial Council.

The pay ratio demonstrating the relationship between the Council’s highest-paid employee and the median earnings figure of the workforce (excluding schools staff and casual workers) is 6:1 as at 31 March 2021.

The Council’s pay ratio is based on the full-time equivalent salary and the full-time equivalent of all elements of remuneration that can be valued, e.g. all taxable earnings for the given year including base salary, variable pay, bonuses, allowances and the cash value of any benefits in kind - excluding pension benefits.  It incorporates those employees on Bexley grades 1-27, specialist Hay grades e.g., Children’s Social Workers, Valuers and Legal, and those whose grade has been established using nationally agreed schemes.  The pay ratio excludes schools-based staff and casual workers.

The Council will have regard to its pay ratio, balancing the need to encourage the employment of staff at the lower end of the pay scale whilst appropriately rewarding responsibility, valuable knowledge, skills and experience at the higher end.  The Council will keep its pay ratio under careful review.

10. Appointment of Senior Executives

(a) Direct Employment

All senior executives will be appointed by the Members Staffing Panel in accordance with agreed procedures.

(b) Appointment via a Contract for Services

The Council will not normally appoint a senior executive via a contract for services rather than under a direct contract of employment.  Where unable to recruit under a direct contract of employment, or there is a need for interim support to provide cover for a vacant senior executive post, the Council may consider engaging individuals under a contract for service.  This will be managed in accordance with the Council’s financial regulations and procurement process to ensure that the Council is able to demonstrate the maximum value for money in securing the relevant service.

Where a senior executive is appointed under a contract for services the Council will publish this information alongside other relevant data.

(c) Appointments where the salary package exceeds £100,000

In accordance with the salary scales and terms and conditions of employment that have been agreed by the General Purposes and Audit Committee, the Council’s pay and grading structure provides for its senior executives a salary package that may exceed the sum of £100,000 on appointment.  This sum is the threshold identified in the supplementary guidance issued in February 2013 under ‘Openness and Accountability in Local Pay: Guidance issued under Section 40 of the Localism Act 2011’.

The current arrangements for determining pay on appointment are sufficiently robust and transparent.  In order to avoid delay, therefore, or place an appointment at risk, full Council, through its annual approval of this Pay Policy Statement, fully authorise the appointment of senior executives on the salary scales and terms and conditions that are in accordance with the Council’s standard contract of employment and agreed arrangements for remuneration.

11. Compensation for loss of office

(a) Financial Terms for Redundancy and Early Termination

The Council will operate its financial terms for redundancy and early termination for all staff, including senior executives, who leave the Council on the grounds of redundancy or business efficiency subject to certain qualifying conditions.

These terms are reviewed annually by the Pensions Committee to ensure that they remain workable, affordable and reasonable.

Any changes to relevant regulations and pension scheme rules will be incorporated into and where relevant amend the Council’s financial terms as appropriate.

View Financial terms for redundancy and termination (PDF).

(b) ill-health

Where termination of employment arises from ill-health, payments will be made in accordance with the contract of employment. In addition, pension may be payable in accordance with the relevant pension scheme rules.

(c) Negotiated Exit Settlements

Approval to pay any exit settlement for a senior executive will be sought from the Leader of the Council, the Cabinet Member for Resources and, where required, the External or Appointed Auditor.

The Chief Executive, Head of HR (currently the Deputy Director Corporate Services), and the relevant Director will determine if the settlement is appropriate for a senior executive. In such cases, the Council’s Section 151 Officer and the Council’s Monitoring Officer will confirm that the terms offer value for money for the taxpayer and are appropriate, fair and reasonable in the circumstances.

Negotiated settlements are not standard practice and, because they will be subject to legal confidentiality agreements, cannot be published.

12. Re-employment of Senior Executives and effect on pension payments

(a) Redundancy or Efficiency Retirement - recovery of payments

On redundancy or business efficiency termination, the Council will recover discretionary severance payments if an employee begins alternative employment with any employer within 4 weeks of the date of termination.

(b) Re-employment of Senior Executives

The Council will not usually re-employ senior executives who have received redundancy or severance payments from the Council.   Should a former senior executive subsequently be considered for re-appointment by the Members Staffing Panel, the Panel will be advised if the officer received such payments and/or is in receipt of pension benefits.  In the event of the individual’s appointment, the Council will publish this information alongside other relevant data.

(c) Abatement of pension payments

The Council, as a pension fund administrator, has an abatement policy in respect of the re-employment of pensioners up to age 60.  If a pensioner from the Bexley Pension Fund is re-employed by any local authority or an organisation where they have access to the Local Government Pension Scheme their pension will be reduced by the amount that their pension, plus their new salary, exceeds their previous final salary.  Under the relevant Scheme rules, Bexley’s abatement policy may not be applied to pensioners who become self-employed or who are not eligible to join the Local Government Pension Scheme in their new employment.

In the event that an employee is dismissed as a result of a criminal, negligent or fraudulent act, the Council reserves the right to apply to the Secretary of State to determine whether the individual’s pension rights should be forfeited.

(d) Flexible Retirement

The Council may allow flexible retirement within the rules of the Local Government Pension Scheme. This allows an individual aged 55 and over to draw some or all of their pension if they reduce their hours or grade subject to due consideration to the impact on business and service delivery. Reductions to benefits will apply in accordance with the Scheme. Flexible retirement requests for senior executives must be approved by Members.

View Decisions of Pension Discretions and Financial terms for redundancy and termination (PDF).

13. Publication and access to information relating to the remuneration of Senior Executives

The Council will publish information relating to the remuneration of senior executives in accordance with the Local Government Transparency Code 2015 and relevant guidance. This data will be published on the Council’s website subject, where appropriate, to each individual providing their consent. View Senior Executives job description.

View Senior Executives job description.

1. Introduction

The Pay Policy Statement sets out the Council’s policy relating to the pay of its workforce excluding school-based employees. 

2. Scope and Definitions

Where this policy refers to senior executives, this means the Chief Executive, Directors, Deputy Directors and the Monitoring Officer.

Where the policy refers to the Council’s lowest paid staff, this means those that are paid on the lowest established grade and scale point i.e. Bexley 01, point 03. This reflects the lowest salary payable under the Council’s job evaluation scheme and grading structure.

3. Pay and grading structure

The Council will determine the appropriate grade for each job in accordance with either the Greater London Provincial Council (GLPC) Job Evaluation Scheme or the Hay Job Evaluation Scheme depending upon the job requirements and the level of responsibility of its employees within the organisation. The GLPC scheme considers posts graded Bexley 01-09 and the Hay scheme is used for posts graded Bexley 10-27.

The salary on which staff will be paid will be the rate taken from a salary scale consisting of 27 Bexley grades covering the majority of staff.  Separate Hay salary scales apply to grades within Legal, Valuers and Children’s Services where rates have been enhanced to attract and retain key staff.  These scales are reviewed regularly.

The Council employs a small number of staff on other grades and terms and conditions of employment. These include Soulbury and Youth and Community workers, and staff who have retained their terms and conditions following transfers into the authority, for example, staff on NHS terms and conditions. A small number of staff are employed centrally on Teachers’ terms and conditions.

The scale point within a grade on which an individual will be appointed will depend upon their relevant skills and experience.

View Bexley Salary Scales.

4. Annual pay reviews

Bexley grades will be reviewed annually as follows:

(a) Hay grades (including senior executives):

Hay pay will be reviewed annually by General Purposes and Audit Committee taking account of the following factors below:

i) the National Joint Council for Local Government Services settlement

ii) the annual salary movements within Hay's Remuneration Comparison

iii) the Retail Price Index

Any increases in grade rates are payable from 1 July each year. Any annual award will be at least equal to the level of the lowest of the above four indicators.

(b) Non-Hay Grades (including lowest paid)

Staff employed on Bexley grades 01-09, are employed in accordance with the National Collective Agreement on Pay and Conditions of Service of the National Joint Council for Local Government Services (NJC). Annual pay awards are reviewed nationally each year and reflect a number of considerations including:

• Ability to pay
• Inflation levels
• The ‘going rate’ of other pay awards
• Recruitment and retention issues.

Similar considerations apply to staff employed under Soulbury, Youth and Community, and Centrally Appointed Teachers terms and conditions and whose pay is determined by national collective agreement.

Pay for non-Hay staff will be determined nationally and any increase will be payable with effect either from 1 April (NJC) or 1 September (for Soulbury, Youth and Centrally Appointed Teachers).

Where staff have transferred to the Council under TUPE, and their overall terms and conditions are more favourable than comparative Council rates the transferred terms will remain in place with salary rates fixed at the point of transfer. At the point where the Council’s comparative pay and terms and conditions are no less favourable than the transferred terms, staff transferred under TUPE are offered the opportunity to move to Council terms.

5. Performance-related pay - incremental progression and bonus payments

The Council’s appraisal and performance-related pay arrangements are contained in the Bexley Staff Performance Management Scheme agreed by General Purposes Committee in March 2011. This scheme applies to senior executives and other staff, including the lowest paid.

Incremental progression is only possible under the scheme where performance is deemed to be ‘Excellent’ as defined by the Scheme i.e., “Overall performance materially exceeds requirements.  The employee’s performance and associated behaviours provide an excellent model for others”.

A bonus payment of 5% may be awarded where overall performance fulfils job requirements and, in addition, the employee has demonstrated exceptional performance for the benefit of the Council or its residents in the appraisal year.

Recommendations for awards under the Performance Management Scheme for posts:

• below Director level - will be subject to review by the Council’s Leadership Team to ensure that the scheme is being applied consistently.   The review will take account of the progress of the Council as a whole in delivering its objectives, the Council’s financial position and other relevant circumstances
• Chief Executive and Directors - will be subject to approval by the Top Management Review Panel

Awards earned under this Scheme will be payable with effect from 1 August. No awards were made in 2020/21.

This scheme does not apply to employees on Teachers or Soulbury terms and conditions for whom national terms and conditions apply.

The Council is currently reviewing its performance-related pay and appraisal systems in consultation with our recognised trade unions with the aim of reaching a collective agreement for incorporation into contracts of employment. A proposed new scheme will be presented to General Purposes and Audit Committee in due course subject to the outcome of those discussions and agreement by Members. The additional payments made to staff identified within the pay policy statement are kept under regular review to ensure that a rationale to continue payment exists.

6. Additional payments and allowances

There are a range of other payments and allowances payable such as market premium, salary protection, car allowances, overtime, additional hours, standby/call-out payments and retention bonuses for key staff.

Payments and allowances will be reviewed in accordance with either national or local pay awards or as otherwise agreed.

View Local Allowances and Rates.

7. Pensions

The Council employs staff who are eligible to join the Local Government Pension Scheme, Teachers Pension Scheme and the NHS Pension Scheme. The Council will provide pensions and benefits in accordance with the rules of each Scheme and the decisions taken on delegated provisions for the LGPS and Teachers Schemes will be agreed by General Purposes and Audit Committee or Pensions Committee.

View Decisions of Pension Discretions.

8. Elections fees

The Chief Executive has separate employment, both as the Council’s Electoral Registration Officer and as the Council’s Acting Returning Officer for all election franchises. Fees are paid within this employment at rates agreed by the Government whenever Parliamentary or local elections occur. Fees will be determined using the cross-London agreed rates and all fees/charges are fully reimbursable from HM treasury and do not constitute a cost to the Council. The election of Borough Councillors will not result in the payment of an additional fee.

The role of Returning Officer is independent of the Council and the fees paid recognise that the Chief Executive is personally liable for the running of elections.

The Returning Officer will be responsible for determining the fees payable to other officers, including those paid to senior executives, for all other election duties.

9. Pay comparisons

The Council’s pay and grading structures will reflect job requirements and the level of responsibility within the organisation.  The pay and grading of employees will be determined by the Council’s job evaluation schemes or, for small groups of staff, other nationally agreed schemes as applicable. The Council’s pay and grading for the lowest-paid staff (and all pay grades to Bexley 09) is governed by the National Collective Agreement on Pay and Conditions of Service of the National Joint Council for Local Government Services.

The pay ratio demonstrating the relationship between the Council’s highest-paid employee and the median earnings figure of the workforce (excluding schools staff and casual workers) is 6:1 as of 31 March 2020. 

The Council’s pay ratio is based on the full-time equivalent salary and the full-time equivalent of all elements of remuneration that can be valued, e.g. all taxable earnings for the given year including base salary, variable pay, bonuses, allowances and the cash value of any benefits in kind - excluding pension benefits.  It incorporates those employees on Bexley grades 1-27, specialist Hay grades e.g., Children’s Social Workers, Valuers and Legal, and those whose grade has been established using nationally agreed schemes. The pay ratio excludes school-based staff and casual workers.

The Council will have regard to its pay ratio, balancing the need to encourage the employment of staff at the lower end of the pay scale whilst appropriately rewarding responsibility, valuable knowledge, skills and experience at the higher end. The Council will keep its pay ratio under careful review.

10. Appointment of Senior Executives

(a) Direct Employment

All senior executives will be appointed by the Members Staffing Panel in accordance with agreed procedures.

(b) Appointment via a Contract for Services

The Council will not normally appoint a senior executive via a contract for services rather than under a direct contract of employment. Where unable to recruit under a direct contract of employment, or there is a need for interim support to provide cover for a vacant senior executive post, the Council may consider engaging individuals under a contract for service. This will be managed in accordance with the Council’s procurement process to ensure that the Council is able to demonstrate the maximum value for money in securing the relevant service.

Where a senior executive is appointed under a contract for services the Council will publish this information alongside other relevant data.

(c) Appointments where the salary package exceeds £100,000

In accordance with the salary scales and terms and conditions of employment that have been agreed by the General Purposes and Audit Committee, the Council’s pay and grading structure provides, for its senior executives, a salary package that may exceed the sum of £100,000 on appointment. This sum is the threshold identified in the supplementary guidance issued in February 2013 under ‘Openness and Accountability in Local Pay: Guidance issued under Section 40 of the Localism Act 2011’. The current arrangements for determining pay on appointment are sufficiently robust and transparent. In order to avoid delay, therefore, or place an appointment at risk, full Council, through its annual approval of this Pay Policy Statement, fully authorise the appointment of senior executives on the salary scales and terms and conditions that are in accordance with the Council’s standard contract of employment.

11. Compensation for loss of office

(a) Financial Terms for Redundancy and Early Termination

The Council will operate its financial terms for redundancy and early termination for all staff, including senior executives, subject to certain qualifying conditions, who leave the Council on the grounds of redundancy or business efficiency.

These terms are reviewed annually by the Pensions Committee to ensure that they remain workable, affordable and reasonable. The provisions of any Regulations, Reforms and pension scheme rules will be incorporated and where relevant amend the Council’s financial terms as appropriate.

(b) ill-health

Where termination of employment arises from ill-health, payments will be made in accordance with the contract of employment. In addition, pension may be payable in accordance with the relevant pension scheme rules.

View Financial terms for redundancy and termination (PDF).

(c) Negotiated Exit Settlements

Approval to pay any exit settlement for a senior executive will be sought from the Leader of the Council, the Cabinet Member for Resources and, where required, the External or Appointed Auditor.

The Chief Executive, Head of HR (currently the Deputy Director Corporate Services), and the relevant Director will determine if the settlement is appropriate for a senior executive. In such cases, the Council’s Section 151 Officer and the Council’s Monitoring Officer will confirm that the terms offer value for money for the taxpayer and are appropriate, fair and reasonable in the circumstances.

Negotiated settlements are not standard practice and, because they will be subject to legal confidentiality agreements, cannot be published.

(d) Severance Packages exceeding £95,000

The implementation of a £95,000 cap on public-sector exit payments, including employer contributions to pension costs, came into effect on 4 November 2020. An exit payment is subject to the cap if it is a type of payment described in regulation 5(2) of The Restriction of Public Sector Exit Payments Regulations 2020.

Further details can be found in the Restriction of Public Sector Exit Payments Guidance.

12. Re-employment of Senior Executives and effect on pension payments

(a) Redundancy or Efficiency Retirement - recovery of payments

On redundancy or business efficiency termination, the Council will recover discretionary severance payments if an employee begins alternative employment with any employer within 4 weeks of the date of termination.

(b) Re-employment of Senior Executives

The Council will not normally re-employ senior executives who have received redundancy or severance payments from the Council.   Should a former senior executive subsequently be considered for re-appointment by the Members Staffing Panel, the Panel will be advised if the officer received such payments and/or is in receipt of pension benefits. In the event of the individual’s appointment, the Council will publish this information alongside other relevant data.

(c) Abatement of pension payments

The Council, as a pension fund administrator, has an abatement policy in respect of the re-employment of pensioners up to age 60. If a pensioner from the Bexley Pension Fund is re-employed by any local authority or an organisation where they have access to the Local Government Pension Scheme their pension will be reduced by the amount that their pension, plus their new salary, exceeds their previous final salary. Under the relevant Scheme rules, Bexley’s abatement policy may not be applied to pensioners who become self-employed or who are not eligible to join the Local Government Pension Scheme in their new employment.

In the event that an employee is dismissed as a result of a criminal, negligent or fraudulent act, the Council reserves the right to apply to the Secretary of State to determine whether the individual’s pension rights should be forfeited.

(d) Flexible Retirement

The Council may allow flexible retirement within the rules of the Local Government Pension Scheme. This allows an individual aged 55 and over to draw some or all of their pension if they reduce their hours or grade subject to due consideration to the impact on business and service delivery. Reductions to benefits will apply in accordance with the Scheme. Flexible retirement requests for senior executives must be approved by Members.

View Decisions of Pension Discretions and Financial terms for redundancy and termination (PDF).

13. Publication and access to information relating to the remuneration of Senior Executives

The Council will publish information relating to the remuneration of senior executives in accordance with the Local Government Transparency Code 2015 and relevant guidance. This data will be published on the Council’s website subject, where appropriate, to each individual providing their consent.

View Senior Executives job description.