INMO WELCOMES CLARIFACATION ON CASH EQUIVALENT OR LOST LEAVE UNDER INCREMENTAL AJUSTMENT SECTION OF HRA.
The INMO, in conjunction with other public service unions, has today welcomed the clarification from Government , following representations made by INMO and other public service trade unions relating to incremental ajustment for public servants at the top of their scale who wish to incur a ‘cash deduction’ rather than accept a temporary loss of leave under the Haddington Road agreement.
It has been agreed that the cash deduction will amount to the gross pay value of either the individual’s leave days or half of their most recent increment, minus a reduction of 62%.
The Haddington Road agreement stipulates that public servants who have reached the top of their scale and earn between €35,000 and €65,000 per annum, must temporarily forfeit either six days leave, or lose the cash equivalent, over the lifetime of the agreement. This is being enacted because employees who are not at the top of scales will be subjected to temporary delays in the payment of increments.
Under the agreement, employees could choose a cash deduction from salary, equivalent to the value of six annual leave days, or half of their most recent increment. However, Revenue issues made implementing this element of the deal problematic.
this clarification from the the Department of Public Expenditure and Reform which resulted in staff already at the top of their scale losing the value of six days minus a discount of 62%, which reflects the value of tax and other deductions from gross pay.
Employees that reach the top of their scale after a second increment paid during the lifetime of the agreement and who earn between €35,000 and €65,000, will incur a one-time loss of three days leave, or the cash equivalent. These employees will also be subject to the same formula for calculating the cash equivalent. It is important to note that the loss of leave, or the cash equivalent, is not a permanent reduction but will be stretched out over the three-year lifetime of the agreement.
The Department of Public Expenditure and Reform has issued a circular that explains the method for conceding leave, which includes pro-rata arrangements for employees who reach their salary maximum in the period 2013–2016.
Clarification has already been received from the HSE that the choice of which option to take is the employees.
The attached memo which the HSE issued to all amnagers clearly sets this out.( HSE memo 18.11.13)
Now that this long awaited clarification has been received members are encouraged to consider the options and decide which is best for you, you ca as always seek advice and assistance from the INMO if required before you express your decision to your employer.
The application of this adjustment to Senior Staff Nurse Grade is currently the subject of negotionations with the HSE and are not completed at this time. Therefore, please be aware that agreement is not reached with the HSE on the application or otherwise of this particular provision of the Haddington Road Agreement to those who will attain the Senior Staff Nurse Grade during the lifetime of the Haddington Road Agreement or those who are already on that point. Until this matter has been agreed members in these categories should advise their employer that their decision can only be made once agreement has been reached.