Pay Policy Statement 2020/21
Purpose of Report
To inform members of the Fire and Rescue Authority’s responsibilities arising from the Localism Act 2011 (the Act).
The Act requires the Fire and Rescue Authority (the Authority) to prepare an annual Pay Policy Statement for approval before the commencement of the financial year to which it relates.
This paper sets out the proposed Pay Policy Statement for 2020/21.
Executive Summary
The Authority is required to prepare and approve a Pay Policy Statement on an annual basis in accordance with the Localism Act 2011. The statement must also comply with the Welsh Government guidance issued in 2017, “Pay Accountability in Local Government in Wales”
Observations from the Executive Panel or Audit Committee
This report has not previously been considered.
Recommendation
Members are requested to
(i) note the requirements of the Localism Act 2011; and
(ii) approve the Pay Policy Statement for the 2020/21 financial year.
Background
A Pay Policy Statement must be prepared in accordance with Part 1; Chapter 8 (Sections 38 – 43) of the Localism Act 2011. The guidance issued by the Welsh Government summarises the key elements of the Pay Policy Statement which includes:
(a) Information relating to the remuneration of its chief officers;
(b) the remuneration of its lowest paid employees; and
(c) the relationship between:
(i) the remuneration of its chief officers, and
(ii) the remuneration of its employees who are not chief officers.
The statement must state:
(a) the definition of “lowest-paid employees” adopted by the Authority for the purposes of the statement; and
(b) the Authority’s reasons for adopting that definition.
The statement must also include the Authority’s policies relating to:
(i) the level and elements of remuneration for each chief officer;
(ii) remuneration of chief officers on recruitment;
(iii) increases and additions to remuneration for each chief officer;
(iv) the use of performance-related pay for chief officers;
(v) the use of bonuses for chief officers;
(vi) the approach to the payment of chief officers on their ceasing to hold office under or to be employed by the authority; and
(vii) the publication of and access to information relating to remuneration of chief officers.
Information
The purpose of this Pay Policy Statement is to provide transparency with regard to the Authority’s approach to setting the pay of its employees, in particular, that of chief officers and employees on the lowest pay scale, by identifying the methods by which salaries are determined.
IMPLICATIONS
Wellbeing Objectives | The Pay Policy Statement provides a framework for decision making on pay and in particular decision making on senior pay, contributing to securing the Authority’s financial sustainability and to being able to demonstrate the fair and equitable allocation of pay. | |
Budget | Pay awards agreed and published by the National Joint Councils are taken into consideration when setting the Authority’s annual budget. | |
Legal | Under section 38(1) of the Localism Act 2011 the Fire and Rescue Authority has a legal duty to produce an annual Pay Policy Statement by 31 March preceding the year of the statement. | |
Staffing | The Pay Policy Statement supports the principles of transparency, equal pay and support for staff. | |
Equalities/Human Rights/ | Equal treatment in respect of pay is an important part of the FRA Equality objectives. | |
Risks | Non-compliance with legislation leads to legal and reputational risk. |