making the difference to your business employee consultation forum meeting 24 th july 2012
TRANSCRIPT
![Page 1: Making the difference to your business Employee Consultation Forum Meeting 24 th July 2012](https://reader035.vdocument.in/reader035/viewer/2022062221/56649ea05503460f94ba3b27/html5/thumbnails/1.jpg)
Making the difference to your business
Employee Consultation Forum
Meeting 24th July 2012
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Proposal
Move pay date for all existing employees currently paid on 15th month to 28th (Or last working day prior to 28th where the 28th falls on a weekend)
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Business Benefits
Significant positive impact on DUK Cash Flow DUK is financially strong (Plimsoll report) Business is trading profitably and cash generative but… We have intra month pressures that impact supplier payments Big message from employee survey was need to address supplier
payment concerns In-line with majority of UK Payrolls Return to one payroll as opposed to current two (all new
starters since Sept 2011 and Executive Leadership Team are paid at end of month)
Reduces exposure to overpayments for leavers Increased time for internal payroll checking – linked to month
end results
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Employee Impact
Basic Salary plus any fixed payments (e.g. shift/ allowances) Currently paid monthly, half in advance and half in arrears Move to monthly in arrears In the transition month employees will be paid 2 weeks later than
usual
Commission/Bonus payment Currently paid 1 month in arrears Orders not verified currently go into following months payment Date change will allow all payments to be included
Overtime & Other variable Allowances Currently paid 1 month in arrears, approx. 22nd - 22nd each month This reference period will move back by 2 weeks
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Employee Support
2 months advance notice to manage financial commitments
Advice and guidance through Q&A documents to all affected employee e.g. payments such as mortgages, bills, loans
121’s with nominated Manager/HR as required to answer questions and discuss any individual concerns/requests
Mid month interim loan available to employees on request and repayable over agreed term:
e.g. a loan equivalent to 25% of monthly net (after tax and NI) base salary, paid back over 6 months
Loan Example
Base salary of £24,000. Loan equivalent to (£24,000/12 months) = £2,000 @ 25% = £500 (minus approximate tax and NI deductions).
Paid back from November 2012 for 6 months – Last payment April 2013
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Employee Support (cont.)
Time and support during working hours to make any necessary personal arrangements
Communications running up to the pay date change
If the transition is agreed by end August, October payment will include 6 weeks of overtime for relevant employees
If majority of affected employees requested December payroll date can be paid prior to Christmas, 5
working days prior to 25th December
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Transition Proposal/Timescales
The sooner in place, cash benefits available to Company
2 month notice in advance of the date changing
Consultation with affected employees over next 2 weeks
Further ECF meeting on 7th August to review feedback
Guidance and 1-2-1 meetings during following 4 weeks
Proposed transition in the month of October 2012
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Transition Proposal/Timescales
How it works
September payroll paid on 15th September
Employee loan paid on 15th October (for employees who require it)
October payroll paid on 26th October (last working day before 28th)
November payroll paid on 28th November
December payroll paid on 18th December (5 working days prior to 25th).
January 2013 onwards payroll paid on 28th month or last working day before 28th if it falls on weekend (with exception of December to be agreed)
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Q & A