[UK] HMRC offers workers 1% pay rise to give up flexible hours

[UK] HMRC offers workers 1% pay rise to give up flexible hours
12 Oct 2023

In the UK, HMRC is offering officials a 1 per cent pay bump to give up flexible working hours as part of moves to increase staffing levels during peak times, Civil Service World reports.

It is launching a pilot of annualised hours for Customer Services Group staff, under which employees give up the right to flexitime throughout the year in exchange for a small pay rise and guaranteed extra hours. 

In addition, HMRC is reportedly set to permanently roll out an annual leave selling scheme which allows its officials to sell some of their annual leave back to the department, following a trial in January. 

The union PCS has warned that this will lead to “already overworked” lower-paid officials feeling they have to give up holidays to get higher take-home pay.

PCS described the 1 per cent offer in return for flexitime arrangements as “frankly embarrassing”.

Under the scheme, those signing up would have their contract of employment changed to require them to work more hours during the weeks or months that the department considers to be periods of highest demand. They would lose their freedom to work flexibly.

Under the current flexitime system - introduced in 2021 as part of pay and contract reforms - staff may vary the hours they work as long as they complete their contractual hours over a three-month period. They can also build up "flexi-leave" by working more than their contractual hours in a given period, giving them the ability to take time off in lieu.

Volunteers for annualised hours would reportedly give this up in exchange for 1 per cent extra pay and a work pattern involving working fixed, longer hours for six months of the year - including June and December - and fixed, shorter hours during the rest of the year. HMRC would also be able to call staff into work during unexpected peaks during quieter months.

The extra hours will be included in employees' contracts and therefore will not be optional. This means staff will need HMRC’s agreement to switch back to normal full-time working hours if they later find the extra hours too much, according to PCS.

PCS has told officials they should not volunteer for the scheme. It said the 1 per cent pay offer is “frankly embarrassing” and would earn AO officers little more than £4 extra a week. It said staff of other departments currently operating an annualised hours policy, such as the Home Office, are rewarded much more generously.

The union reportedly said it is “prepared to discuss” proposals from HMRC for a system of annualised hours that “fully and fairly compensate members for the loss of flexible working hours”.

However, it said the “derisory suggestion of less than £5 a week doesn’t even begin to open the door to talks of that kind”.

“Volunteering to give up the freedom to work flexibly, in favour of being told by the department precisely what hours you’ll be working, in what month, depending on whether they think they need you in or not; and all you might get for volunteering is less than £4 a week after tax, makes absolutely no sense whatsoever,” the union said.

“We strongly advise you not to volunteer.”


Source: Civil Service World

(Link and quotes via original reporting)

In the UK, HMRC is offering officials a 1 per cent pay bump to give up flexible working hours as part of moves to increase staffing levels during peak times, Civil Service World reports.

It is launching a pilot of annualised hours for Customer Services Group staff, under which employees give up the right to flexitime throughout the year in exchange for a small pay rise and guaranteed extra hours. 

In addition, HMRC is reportedly set to permanently roll out an annual leave selling scheme which allows its officials to sell some of their annual leave back to the department, following a trial in January. 

The union PCS has warned that this will lead to “already overworked” lower-paid officials feeling they have to give up holidays to get higher take-home pay.

PCS described the 1 per cent offer in return for flexitime arrangements as “frankly embarrassing”.

Under the scheme, those signing up would have their contract of employment changed to require them to work more hours during the weeks or months that the department considers to be periods of highest demand. They would lose their freedom to work flexibly.

Under the current flexitime system - introduced in 2021 as part of pay and contract reforms - staff may vary the hours they work as long as they complete their contractual hours over a three-month period. They can also build up "flexi-leave" by working more than their contractual hours in a given period, giving them the ability to take time off in lieu.

Volunteers for annualised hours would reportedly give this up in exchange for 1 per cent extra pay and a work pattern involving working fixed, longer hours for six months of the year - including June and December - and fixed, shorter hours during the rest of the year. HMRC would also be able to call staff into work during unexpected peaks during quieter months.

The extra hours will be included in employees' contracts and therefore will not be optional. This means staff will need HMRC’s agreement to switch back to normal full-time working hours if they later find the extra hours too much, according to PCS.

PCS has told officials they should not volunteer for the scheme. It said the 1 per cent pay offer is “frankly embarrassing” and would earn AO officers little more than £4 extra a week. It said staff of other departments currently operating an annualised hours policy, such as the Home Office, are rewarded much more generously.

The union reportedly said it is “prepared to discuss” proposals from HMRC for a system of annualised hours that “fully and fairly compensate members for the loss of flexible working hours”.

However, it said the “derisory suggestion of less than £5 a week doesn’t even begin to open the door to talks of that kind”.

“Volunteering to give up the freedom to work flexibly, in favour of being told by the department precisely what hours you’ll be working, in what month, depending on whether they think they need you in or not; and all you might get for volunteering is less than £4 a week after tax, makes absolutely no sense whatsoever,” the union said.

“We strongly advise you not to volunteer.”


Source: Civil Service World

(Link and quotes via original reporting)

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