Pay policy statement

Policy overview 

Our pay policy statement sets out our pay and conditions for senior managers and employees. It does not include operational firefighters and school-based employees. This pay policy statement is for 2024 to 25.

We aim to attract and retain employees to deliver our objectives. We are committed to ensuring a fair and transparent approach in determining pay policy. We recognise that we may need other methods for different groups of employees. These will need to reflect factors such as difficulties in attracting and retaining critical skills. 

Principles 

• To be fair, reasonable and transparent 
• To be affordable 
• To reward employees for their contribution to our achievements 
• To maintain rates of pay which are both competitive in the marketplace and reflect the need to retain critical skills 

Employees in scope 

Our statement covers all employees, except for teachers and uniformed firefighters, unless they are defined as senior managers. This statement, therefore, is broader than the minimum legal requirements of the Localism Act 2011. 

The senior management pay structure 

We define senior managers as:  

• the chief executive
• deputy chief executive 
• executive directors (referred to as chief officers)   
• the chief fire officer 
• the deputy chief fire officer  
• the assistant chief fire officer
• the senior leadership pay band

Chief executive and executive directors 

The pay policy sub-committee determines remuneration. It compares similar posts in other shire counties in the Eastern and Midlands region and against the marketplace.  

The aim is to ensure that we retain and motivate key employees. We maintain rates of around median pay which are both competitive in the marketplace and reflect the need to retain critical skills. 

We pay the chief executive and deputy chief executive on a single spot salary. We pay all executive director posts on a single spot salary point. These roles all have collective responsibility for the success of all service areas and the council as a whole. 

Senior leadership 

The head of paid service determines remuneration, which is underpinned by:

• the KornFerry/Hay (KFH) job evaluation scheme
• or job descriptions matched with posts previously evaluated under KFH

Employees are subject to a non-consolidated incremental pay grading structure known as SLA, SLB and SLC. We award increments every two years subject to satisfactory performance.  This is in accordance with our performance and development appraisal policy.

The director of public health does not hold an executive director portfolio.  This role is paid on a spot salary above SLA and below that of executive directors.

Fire and rescue service management team 

The NJC for Brigade Managers (Gold Book2) determines the pay structure for senior fire and rescue managers. The deputy chief fire officer and assistant chief fire officer receive 80 per cent and 75 per cent, respectively, of the chief fire officer salary. 

Payments over £50,000

We publish all information about all payments over £50,000 on our website in the statement of accounts. This is in line with the 2011 Code of Recommended Practice for Local Authorities on Data Transparency.

Other employees' pay structure (including lowest-paid employees) 

Our job evaluation (JE) scheme usually determines remuneration for other employees. This covers all staff on NJC Local Government Services terms and conditions of service, including the lowest-paid council employees.

The pay and grading structure we use was implemented by Collective Agreement in July 2008. It was backdated to be effective from 1 April 2007. It anchors to the national NJC pay spine for Local Government Services. 

The JE Scheme, the Greater London Provincial Council Scheme, was selected through a process of consultation with staff and Trade Unions. It complies with equal-pay requirements. 

The council and unions signed a Collective Agreement in 2015, incorporating changes to modernise the local conventions for job evaluation.  

Non-standard terms and conditions 

Some employees may transfer to the council under The Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) arrangements. They have the right to retain their existing terms and conditions.  

We recruit some specialist posts under specific terms and conditions, although they are in scope of the local scheme of conditions of service. These are mainly in education-related services (for example, educational psychologists and the youth service).  

The national pay award 

We adjust pay levels to take account of any cost of living increase negotiated nationally by:  

• the JNC for Local Authority Chief Executives  
• the JNC for Chief Officers of Local Authorities 
• the NJC for Local Government Services.  

We adjust the pay rates in the staff pay structure to reflect the NJC Local Government Services national pay award. 

Attraction and retention payments 

We recognise that it may be difficult at times to recruit new employees or retain existing staff in critical posts. To attract and retain a skilled and experienced workforce, we may pay salary supplements in addition to the post grade. For more details, read the attraction and retention policy.  

Relocation expenses and disturbance allowances 

We may pay relocation expenses and disturbance payments to cover employees' costs incurred due to a change or disturbance in work base. We pay these in line with the relocation policy and the managing change policy. 

Starting pay 

When appointed, we pay employees on an incremental scale. We usually appoint employees at the minimum point of the pay grade for that post.

Sometimes, it may be appropriate to appoint to a higher point within the pay grade. This should be objectively justifiable and have regard to the pay of existing employees within the service area. For more details, read the green book employees pay and conditions policy.   

However, managers must be aware of any restrictions. For example, the requirement of a qualification which prevents this typical sequence of events from occurring. 

We may appoint an employee who does not yet meet the minimum competency requirements for that role. We will appoint them as per the appointing one point below policy.   

Pay progression 

We exclude the chief executive, executive directors and fire and rescue senior managers from this scheme. We appoint them to a spot salary, and no pay progression applies. 

For other employees, all performance and development appraisal reviews will assess overall performance against objective outcomes of either met or not met. We use this rating to inform incremental pay progression decisions for employees on GLPC grades. 

The impact of ratings on incremental pay progression will only affect employees who are on GLPC grades. It does not apply to employees who transferred into the council under TUPE and remain on the terms and conditions of their previous organisation.    

For those on GLPC grades, it only affects those who have not reached the top of their current GLPC scale. The pay of employees who are at the top scale point of their GPLC grade is not affected. 

For other employees, eligibility will be as per the green book employees pay and conditions policy, covering the NJC for Local Government Services Group. 

We may withhold a pay increment following an adverse report on an employee's performance, subject to our capability and disciplinary procedures.   

We may pay any withheld increments if the employee's performance becomes satisfactory. We will not backdate them. 

Reviewing individual performance 

We assess individual achievement using our performance and development appraisal policy. Managers may amend the appraisal process so that it is appropriate for the role of the employee. 

Learning and development needs are linked to the core values and behaviours framework. These are interchangeable with national occupational standards of competence, where appropriate. 

Responsibility for reviewing performance 

The leader of the council and an appointed cross-party group assess the chief executive's individual performance.

The chief executive assesses individual executive directors and reports to the cross-party group. 

Line managers assess all other employees, as appropriate. 

Acting-up arrangements 

Sometimes, employees may temporarily act up into a role which is graded on a higher level. We will pay them at the appropriate level for the duties we ask them to perform.

For more details, read our green book employees pay and conditions policy covering the NJC for Local Government Services Group.

Honoraria 

We may make an honorarium payment for exceptional or outstanding work undertaken on a short-term basis of not more than six months. We will pay this as per our green book employees pay and conditions policy covering the NJC for Local Government Services Group. 

Employees on fixed-term or temporary contracts 

We will not treat employees on fixed-term or temporary contracts less favourably than employees on a permanent contract. For more details, read our fixed-term and temporary contracts policy.   

Allowances and expenses 

Chief executive, executive directors and senior leadership 

Allowances will be as per the local scheme of conditions of service or jointly-agreed schemes in director areas. 

We will reimburse business travel as per our travel and expenses policy. This policy applies to all staff in the scope of the local scheme of conditions of service. 

Fire and rescue service senior managers 

Allowances and expenses will be as per the NJC for Brigade Managers Conditions of Service and Service Order 19 - Pay and Allowances. 

Salary protection 

Where an employee accepts a post on a lower grade due to restructuring or change in the workforce, personal salary protection will apply. This is in line with the local scheme of conditions of service or the Collective Agreement on Pay Protection for those in the Fire and Rescue Service.  

Severance payments 

For employees in the Local Government Pension Scheme, we will make payments for redundancy and early retirement in line with our managing change policy or retirement policy. This includes chief officers. 

All employees, including chief officers, who receive a redundancy payment are subject to the Redundancy Payments (Continuity of Employment in Local Government etc) (Modifications) Order 1998. 

Payments for returning officers during local elections 

We pay the chief executive and executive directors who are Returning Officers as per their respective JNC Conditions of Service. The current head of paid service relinquishes this payment in favour of district chief executives who may fulfil the role of Deputy Returning Officer.   

We make payments to employees at head of service and below for local election duties as per the local scheme of conditions of service.

Pay policy sub-committee 

The pay policy sub-committee undertakes an annual review of the salaries of the chief executive and executive directors. 

The sub-committee comprises of councillors from the appointments committee, representing the political balance of the council overall. This is in line with the terms of the Local Government and Housing Act 1989. 

Our green book negotiating team  

The negotiating team considers pay issues relating to all employees within the scope of NJC pay awards. 

Relationship between senior pay and conditions with other officers (including the lowest paid)

We set out the approach for determining senior management in the senior leadership paragraph above.

We set out the approach for determining other employees’ pay, including the lowest paid employees, in the other employees' pay structure (including lowest-paid employees) above.

Pay multiples or pay dispersion

A pay multiple is a ratio between the salary of the highest-paid employee and the median full-time equivalent salary of the organisation. The pay multiple is often referred to as 'pay dispersion.'  

For 2024 to 25, our pay multiple is 3.67.

There is no formal mechanism for direct comparison between pay levels of the broader workforce with senior manager pay. We have no policies on reaching or maintaining a specific pay multiple. 

Re-engagement of former senior managers 

A former senior manager should generally not be re-employed if:

• they were previously made redundant
• or, receive a local government pension

This applies for a period of six months from the end of their employment. 

In exceptional circumstances, we may re-employ a senior manager more quickly but not within one month and one day of their leaving date. 

In approving a re-employment of a senior manager, members must be satisfied that: 

• the employee is not being re-employed in a role which is broadly similar to the one from which they were made redundant
• the rate of pay applied to the work undertaken by the re-engaged employee should be appropriate. It should not be the grade which applied to the employee before the end of their previous contract 
• the employment should be for a fixed term, not exceeding one year, unless there are exceptional circumstances. The arrangement must provide us with a financial or operational advantage.

The policy of the Lincolnshire Pension Fund is not to abate pensions should any officer retire and then return to work for the council. 

Contracts for services and appointment of consultants 

By law, we must determine whether an arrangement with a consultant or contractor constitutes a contract of employment or is on a self-employed basis. We must determine this for every proposed agreement. 

The decision on status relates to the contract, not the individual. We must undertake this before we agree to any engagement or sign any contract.

Where an engagement constitutes a contract of employment, our standard terms and conditions will apply. We will pay the contract at the evaluated rate for the job. 

It may be appropriate to re-engage a former employee as a consultant with a contract for service in certain circumstances, such as:

• for discrete pieces of work where the former employee has the appropriate skill and experience, which is not available elsewhere in the council
• where it is more cost-effective
• where it is difficult to recruit due to market conditions 
• where work of an urgent nature arises at short notice

We will make such arrangements time-limited. They are subject to appropriate written agreements covering the nature, duration and quality standards. We will include the basis on which the agreement terminates. The contractor must sign the written agreement before the arrangement starts. 

The initial consideration for providing cover for urgent work will be through the use of temporary employment contracts. We will advertise these in the usual manner. We may make acting-up or secondment arrangements available to existing staff, particularly where work relates to the regular business of the service area.

Under the Pensions Act 2008, we must comply with auto-enrolment regulations. We will assess whether a contractor is an employee rather than self-employed and therefore, pensionable under the Act. 

To determine whether a consultant is self-employed, we will consider:

• the contractual terms we agree
• the realities of the employment relationship

We review whether there is provision for substitution and whether resources are provided by the consultant or by us. These examples are not exhaustive and are illustrative of the type of factors we will take into account. 

Personal service contracts 

In the contracting sector, the generally accepted definition of a personal service company is:

• a limited company that typically has a sole director, the contractor, who owns most or all of the shares

Many contractors choose to work for clients using their own limited companies for many reasons.  

Limited companies can be a tax-efficient way for contractors to work. They may split their income between salary and dividends. This means they do not pay employers' or employees' Class 1 National Insurance Contributions on a large part of their income. 

Personal service contracts prevent the risk of there being a contract of service or an employment relationship with us. This eliminates any income tax liability on the council. 

Using a limited liability company also insulates contractors from business risk to a certain extent.

We do not currently have any such contracts in place for regular employment.   

From 6 April 2017, the Government changed the rules for off-payroll working in the public sector for intermediaries. In line with these changes, we updated our policy on agency, relief and off-payroll workers. 

Gender pay gap information 

Employers with at least 250 employees must publish annual information about their gender pay gap. We publish this on our website, and the Government's gender pay gap website. This is in line with the Equality Act 2010 (Specific Duties and Public Authorities) Regulations 2017.

Senior manager pay structure (from April 2023)

Senior leadership pay band

Details of the senior leadership pay spine can be found in the senior leadership pay guidance.

Consultant reporting to director of public health

Director and consultant roles in public health transferred from the NHS to the county council on the 1 April 2013 as part of the Health and Social Care Act 2021.

The transfer was under TUPE, therefore terms and conditions of employment, including salary, are protected.

Fire and rescue service management team from 1 January 2023

Staff pay structure (from April 2023)

Our pay spine is anchored to salary points on the NJC national pay spine. 

The relevant Lincolnshire scale points are 2, 3, 6, 9, 12, 15, 18, 21, 24, 27, 30 and 33.

Part 3 paragraph 2.6 sleeping-in duty payment

1 April 2023 £40.76

Paragraph 35 Standby Duty Allowance - Social Workers (1)(a)(i) Allowance - Per Session

1 April 2023 £32.81 per session