PRPP BONUS: WHY THE TRADE UNIONS ARE CHALLENGING THE PRPP BONUS SCHEME RULES
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Dear member,
This week, while PRPP bonus payments are being made, some employees have been excluded from receiving a payment under a policy that the trade unions believe is unfair, unreasonable and potentially discriminatory.
The Trade Unions have formally raised concerns with the Company over its decision to exclude employees from receiving a PRPP payment where they have an active disciplinary or capability sanction during the eligibility period. We have also challenged the decision to reduce or pro-rata PRPP payments for employees who have taken periods of leave, including maternity and family leave, during which they were not receiving full pay. As the PRPP is linked to Company performance rather than individual attendance or personal performance, we believe this approach is both difficult to justify and potentially discriminatory.
We wrote to the Company setting out our concerns in detail and requested a substantive response to all of the issues raised. While the Company has now responded and has agreed to meet with the trade unions to discuss our concerns, it has not addressed the issues to our satisfaction and we remain opposed to its current position.
In the interests of partnership working, we have agreed to pause submitting a formal collective grievance while we engage in discussions with the Company. We hope those discussions will result in a fair resolution for affected employees. However, if we are unable to reach a satisfactory way forward, we will formally progress the matter through a collective grievance on behalf of affected members.
Our key concerns are:
- Employees were not informed when receiving disciplinary or capability outcomes that this could result in the loss of the PRPP bonus. We believe many employees may have chosen to appeal the outcome had they known of this consequence.
- Employees are being subjected to an additional financial penalty, beyond the sanction already issued.
- Company delays in disciplinary or capability processes may have unfairly affected employees' eligibility.
- There is no distinction between minor or more serious sanctions, or between conduct and capability matters. It is not clear which formal records are being considered as a "sanction" under this criterion.
- Reducing or withholding PRPP payments during periods of maternity or family leave where employees are not on full pay raises equality concerns, particularly as the PRPP bonus is based on Company performance rather than attendance or individual performance.
- The policy may disproportionately affect disabled employees and women and raises wider equality concerns under the Equality Act 2010.
- The trade unions were not consulted on the introduction of these PRPP eligibility criteria.
Even if you are not directly affected this year, all members should be concerned when changes that impact pay are introduced without clear communication, transparency or consultation with the trade unions. We are worried about the precedent this could set for other policies and processes in the future.
If you have been affected by the eligibility criteria, please get in touch so that we can understand the extent of the impact on our members and ensure we can provide appropriate advice and support.
We will keep members updated following our discussions with the Company and will provide further information on next steps in due course.
Best wishes,
The Joint Trade Unions
GMB
UNISON
UNITE