Employment and Governance in Local Authorities

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Employment and Corporate Governance

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A new form of pay accountability From horizontal comparisons of Equal Pay to Vertical considerations of Relative pay

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PAY CONCERNS “dozens of council chiefs

who earn more than Cabinet ministers would lose their jobs as clusters of councils merged their frontline services and backroom operations to provide better value for money”

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Public perception of local authority pay "How long before a

council announces that, after paying its officials' salaries and pensions, regrettably it has no money left to provide services"

The £1.2m bill for Norfolk’s council chief executives

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The three part strategy

- Authorities have to publish pay policy statements- Authorities must comply with their pay policy statement- Authorities cannot delegate functions in relation to pay policy statements

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Pay Policy statements Pay Policy statements must set out the authority’s

policies for the financial year relating to—

(a) 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.

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7 mandatory conditions – part 1 (a) the level and elements of remuneration for each

chief officer,

(b) remuneration of chief officers on recruitment, (c) increases and additions to remuneration for each

chief officer,

(d) the use of performance related pay for chief officers,

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7 mandatory conditions – part 2 (e) the use of bonuses for chief officers,

(f) the approach to the payment of chief officers on their ceasing to hold office under or to be employed by the authority, and .

(g) the publication of and access to information

relating to remuneration of chief officers.

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Who are chief officers?

Head of paid service The monitoring officer Statutory chief officers and Statutory deputy chief officers

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Consequences?

The view from the bottom and from outside is likely to change a good deal!!

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Other employment aspects of change from Localism Bill Reorganisation Redundancy Reskilling Pay Protection Transferring staff

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Risk management Legality first Outcome risk Litigation risk Future risk

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Employment and Corporate Governance

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