Consideration was given to the report presented by the Assistant Chief Executive and Assistant Director, Human Resources and Organisational Development, which detailed how under the Localism Act 2011, Chapter 8 Pay Accountability, authorities were legally required to produce and publish a Pay Policy Statement by the 31st March each year. This must be agreed by full Council and detail the remuneration of its Chief Officers and must then comply with the Pay Policy Statement for the financial year in making any determination.
The statement must detail:-
· Policies relating to remuneration of Chief Officers (definition includes Directors).
· Remuneration of its lowest paid employees.
· Relationship between remuneration of Chief Officers and employees who are not Chief Officers.
· The remuneration of its Chief Officers.
· Remuneration of Chief Officers on appointment.
· Increases and additions to remuneration for each Chief Officer.
· Use of performance related pay for Chief Officers.
· Use of bonuses for Chief Officers.
· Benefits in kind to which the Chief Officer is entitled.
· Any increase of enhancement to Chief Officer pension entitlement.
· Approach to payment of Chief Officers and their ceasing to hold office.
· Any amounts payable upon the Chief Officer ceasing to hold office other than that payable by virtue of any enactment.
· Approach to publication and access to information relating to remuneration of Chief Officers.
In addition, the approval salary packages offered for new appointments and exit packages for leavers where the value of either was in excess of £100,000 would be considered by Council following recommendation by this Committee.
In terms of pay relationships the lowest pay rate in the authority (excluding apprentice rates) equated to a full time equivalent annual salary of £17,711 and could be expressed as an hourly rate of pay of £9.18, above the current UK Living Wage of £9.00 per hour. This pay rate and salary was determined by the Authority as part of a pay scale for employees employed on Local Government Services Terms and Conditions.
The highest paid salary in this authority was paid to the Chief Executive and the ratio between the two salaries ‘pay multiple’ was 9.5:1. Against the median salary of £20,541 this multiple reduced to 8:1 and against the average salary of £24,881 to 7:1.
The format and content of this Pay Policy was in line with previous practice and in accordance with guidance previously issued by the regional Local Government Employers Association. It was, therefore, felt to reflect good practice and it had not been considered appropriate to deviate from this.
Discussion ensued on the rate that mileage expenses were reimbursed which differed from the HMRC rate. This had been raised previously, but formed part of the budget savings in relation to employee terms and conditions. Whilst it was noted that there would be cost implications for adopting the HMRC rate for mileage, it was suggested that some analysis of cost difference between the HMRC and Council mileage rate reimbursement be undertaken and for this to be circulated to the Staffing Committee Members for information.
Employees were always encouraged to consider alternative transport methods or car sharing for essential journeys.
Resolved:- (1) That the Pay Policy Statement for 2019-20 (Appendix 1) be supported and be recommended to full Council for approval.
(2) That the analysis of cost difference between the HMRC and Council mileage rate reimbursement be undertaken and circulated to the Staffing Committee for information.