SECTION 1 - General Instructions
SUB SECTION 6 – ALLOWANCES
1.071 Eligibility to a functional allowance may be viewed under two separate sections:
- Where a Dep employee, for a limited proportion of his/her working time performs work at a higher level than his contracted grade, provided it is on a regular basis, he may be compensated by an allowance which represents the difference between the pay of his contracted grade and that of the higher grade. He/she will only receive the allowance for those hours during which this higher evaluated function is performed.
- The higher graded duties recognised by this allowance may never normally exceed 50% of the hours worked, as this would indicate that the job is wrongly graded. Each case will require the authority of LEC Sp Svcs, HQ BFG.
- A functional allowance may also be considered for a Dep employee who is contracted to one trade and grade, yet regularly performs unrelated work at the same level for part of his working time. This recognises diverse skills, even though the skills are of equal value. The allowance granted under these circumstances would normally be at a lower level than that granted in recognition of higher graded duties.
1.072 Functional allowances are not to be written into contracts of employment and the contracted job description is not to refer to those duties which are compensated by the allowance.
Submission of Application
1.073 Prior to the additional functions commencing all units are to apply for authority to pay functional allowances by the completion and submission of Part 1 to Annex D of this instruction to the LSU.
1.074 On receipt the OC LSU is to carry out an inspection at the worksite and comment accordingly by completing Part II. It must be confirmed that the duties for which the allowance is claimed do not form part of the employee’s contracted job description and the amount claimed does not equal, or exceed, the pay for the next higher grade. On completion, Annex D is to be forwarded to the applying unit's Budget Manager who is to confirm findancial agreement to the payment of the allowance at Part III. Thereafter, applications for a functional allowance are to be forwarded to LEC Support Services, HQ BFG for approval at Part IV.
1.075 The allowance is to be for a set period, not exceeding one year and this is to be notified to the employee in writing by the LSU. The employee is also to be informed in writing that if the conditions justifying the allowance cease, the allowance will be withdrawn. A copy of the notification is to be signed by the employee and held in his personal file.
1.076 The continuing need for the allowance is to be examined annually by the LSU to ensure that the conditions justifying the allowance remain extant. Applications for renewal of authorities are to be submitted to the unit’s Budget Manager stating why it is necessary for the employee to continue to perform the extra function. The authority to extend functional allowances is delegated to the OC LSU. Additionally OC’s LSU are to examine the justifications for functional allowances during Labour Support checks.
Stable Hand Duties
1.077 An entitlement to a functional allowance for stable hand duties may exist where a driver is responsible for cleaning and maintaining vehicles in addition to his own. Budget Holders may authorise the allowance, observing the conditions at paras 1.072, 1.075 and 1.076. The recommended scale is as follows:
- 2 vehicles including own vehicle = 3%
- 3 vehicles including own vehicle = 4%
- 4 vehicles including own vehicle = 5%
- 5 vehicles including own vehicle = 6%
1.078 The allowance is to be reduced or withdrawn with effect from the date that the number of additional vehicles decrease, or the duties cease to be required.
1.079 A performance allowance may only be granted for outstanding work performance of key employees. To qualify, work performance will normally need to be quantifiable from productive output and the allowance will usually only apply to tradesmen. Isolated instances may however occur where semi-skilled or unskilled employees, by virtue of exceptional industry, may be considered for a performance allowance.
1.080 Performance allowances are not to be granted in an amount which would raise the gross wage of an employee to a level equal to, or above, the wages of employees of a higher wage group in the same trade.
1.081 Each recipient of a performance allowance is to be informed in writing that the allowance is granted for a specific period, no longer than 12 months, and of the reasons for the allowance. The employee is to be given a detailed description of the standard or quantity of work he/she is required to maintain. He/she is also to be informed that if the conditions justifying the allowance cease to exist, the allowance will be withdrawn. Performance allowances are not to be written into employment contracts.
Submission of Applications
1.082 The procedure and method of submission is the same as that for functional allowances in paras 1.073 to 1.076.
1.083 The continuing need for the allowance is to be examined annually by the LSU to ensure that the conditions justifying the allowance remain extant. Applications for the renewal of authorities are to be submitted to the Unit Budget Manager stating why it is necessary for the employee to continue to perform the extra function. The authority to extend performance allowances is delegated to the OC LSU. Additionally OCs LSU are to examine performance allowance justifications during Labour Support checks. Where the circumstances justifying an allowance continue a new authority is to be issued.
1.084 – 1.089 Spare.
Allowances for Difficult Conditions of Work (Severity Allowance)
1.090 Allowances which are payable for particularly difficult conditions of work are at Annex E to this instruction. Before an allowance may be paid, units are to obtain written confirmation from the LSU that the conditions under which the employee works justify payment of the allowance. On receipt of confirmation the unit is to obtain financial authority from the Budget Manager.
1.091 The continuing justification for the allowance is to be confirmed at periodic Labour Support checks.
1.092 The following points are of particular importance in assessing eligibility to severity allowance:
- Severity allowance is only to be paid for the exceptionally severe or difficult conditions specified in Appendix 1 to Annex E.
- Where duties involve more than one difficult condition, the allowances in respect of each separate condition may be cumulative. Details are contained in Appendix 1 to Annex E. Allowances will normally only be paid for those hours during which the employee is subject to the difficult conditions.
- The allowances in respect of climatic influences; persistent heavy rain, severe cold, snow, hail etc., will only be payable for those hours during which work is carried out in the open under particularly disagreeable, or abnormal, conditions.
- Severity allowances do not apply to Watchmen or Fire Fighters.
Charge hands and Leading Charge hands
1.093 The allocation of charge hand duties to employees requires the prior authority of the unit Budget Manager. For guidance, a case to appoint a charge hand (allocate charge hand duties) may normally exist where there is a requirement for the supervision of twelve or more unskilled, semi-skilled or skilled employees in one location. However, where considered technically advisable, charge hands may be appointed for smaller groups of workers. Leading chargehands are to be employed only where it is appropriate not to establish a foreman.
Remuneration and Grading
1.094 The allocation of chargehand duties is to be remunerated by the payment of an allowance of 10%. For leading chargehands a further allowance of up to 10%, depending on the level and extent of responsibility, is to be paid. The allocation of charge hand duties is not to be written into employment contracts. Employees who have accepted to perform the additional duties are to be informed in writing of additional duties, the remuneration and the period during which they are expected to perform such duties. For the period specified charge hands are to be graded at least in the wage group of the highest graded employee supervised. If the charge hand is not qualified, he/she is to be graded in the wage group of the highest paid employee supervised.
Travel and Meal Allowances
1.095 In order that employees on official duty travel are afforded the necessary employee-related insurance cover, line managers are to formally approve all instances of duty travel prior to the event and ensure that this approval is documented.
Employment Away From the Regular Place of Work
- Dep employees who are required to travel in the course of their duties may claim certain allowances and out of pocket expenses. Claims are to be made on LEC Support Services Pay Form 3. Forms are to be completed and distributed in accordance with LEC Support Services and Local LSU Instructions and are to be certified correct by OC’s Employing/User Units. Items of expenses that may be claimed are set out at Annex F to this instruction.
- LEC Support Services Pay Form 3 is to be certified correct by a responsible officer in accordance with current instructions. The certifying officer is to print his name, rank/grade and appointment, or is to use a signature block stamp giving the same details.
Refund of Fares
1.097 Where Service transport is not available, travel will normally be by rail for which rail warrants (Form B Mov 11) are to be issued. Where Dependants are required to travel on duty by rail it is to be at 2nd class rates. Travel by bus will be refunded on production of the ticket.
1.098 The nature of the duty journey or detachment, i.e. the location, the distance involved and the number of employees undertaking the same duty journey/detachment, will determine the mode of travel; this should always be by the most economic means available at the time of the detachment. Where Service transport is not available and where public transport is either not practicable or is more expensive than the payment of kilometre/mileage allowance, an employee may be requested to use their private motor vehicle for a duty journey. Dep employees are refunded MMA under Service regulations. OC units are to authorise the use of private motor vehicles only when it is essential and then prior to the start of the duty journey.
1.099 Travelling time should normally be undertaken during normal contract hours when the employee will continue to receive his/her regular earnings. Travelling on Sundays, public holidays and work-free days should only be undertaken where absolutely essential.
Dep employees who are instructed by line management to travel on a Sunday, public holiday or work-free Saturday may receive compensation of up to 4 hours basic pay, provided written line management authority accompanies any travel claim. Dep employees who travel outside of their contract hours on a week day or who choose to travel on a Sunday, Public Holiday or work-free Saturday will not be entitled to compensation for travelling time. Exceptionally, compensation for overtime hours, night/Sunday/public holiday work hours will be paid to individuals employed as drivers for those hours worked (i.e. driving duties) which coincide with travelling time. This exception will also apply to other employees who on line management instruction drive a car during duty travel and are required to transport persons, goods or items on behalf of the unit.
1.100 Day allowance is applicable for Dep employees who are absent from their normal place of duty, provided that the absence from duty station is for at least 8 hours per day. Details are at Annex F.
Travel/Subsistence Allowance - Duties of less than 15 kms
1.101 A Dep employee may only claim allowances when he/she travels more than 15 kms from his place of work or from his/her place of residence.
1.102 Where the actual cost of an overnight stay exceeds the normal night allowance a supplementary allowance is payable, within specified limits. The hotel bill is to be attached to LEC Support Services Pay Form 03. The authorising officer needs to be satisfied that the bill was necessarily incurred.
Travel Outside Federal Republic of Germany
1.103 The provisions for duty travel within Germany are also applicable outside the FRG. Where, however, increased expenses are incurred for travel outside Germany a supplement to the normal day allowance can be paid by LEC Support Services subject to the submission of receipted bills. Where receipted bills cannot be produced a lower rate supplement may be paid. Supplements are subject to a maximum ceiling and the rate payable is dependent upon the country in which duty travel has been performed.
1.104 The following shift allowances will apply:
- Rotating Shifts. Where an employee's shift changes more than once a month, and where the shift alternates between three different shifts; one of which must contain night work, the employee will be eligible to a rotating shift allowance. This allowance is not payable to 'P & 'Z' tariff workers.
- Alternating Shifts. Where an employee's shift changes more than once a month, they will be eligible to an alternating shift allowance. This allowance is not payable to managers in the 'H' tariff or 'P' & 'Z' tariff employees.
- Standby/On Call. Standby and on call payments can be paid where employees are required to be available for work at short notice outside their normal working hours. Applications are to include comments of the OC LSU and stipulate whether the standby duties are required to be conducted at the place of work (standby) or at the place of residence (on call).
Time Limits on Claims
1.105 Claims which refer to the past periods can be raised by either party in accordance with the time-limits prescribed as follows:
- Claims for incorrect computation of earnings - 12 months.
- Other claims including travel and subsistence - 3 months.
- No claims will be admissible 3 months after the termination of employment.
LEC Special Bonus Award (SBA) Scheme
1.106 The LEC Special Bonus Award (SBA) scheme is designed to recognise and reward instances of exceptional performance among the LEC workforce. The payment of a bonus award is the acknowledgement, by management, of an extremely well-performed specific assignment or exercise, rather than continuous good performance by staff throughout the year.
1.107 The successful completion of a task, by significantly exceeding quality, quantity, time, or cost parameters, is the principal criterion for judging whether an employee (either as an individual, or collectively as part of a team effort) merits a bonus award. Alternatively or additionally, an award can be justified by determining whether appreciable value has been gained for the business in relation to output and corporate image.
Awards for Personal Development and Qualifications
1.108 An award may be made in recognition of significant personal development, such as the achievement of a professional qualification of national standing and which is relevant to the individual’s role in the department. The activity should have involved a substantial personal commitment and additional effort on the part of the individual concerned, e.g. where employees have attended courses in their own time and at their own expense, and demonstrably enhanced their value to the MOD. Applications for an award should not be made where the individual concerned has received a high level of support from the Department towards the attainment of qualifications, e.g. in terms of the payment of costs and time off to study. The recommending officer (normally the employee’s line manager) and the Budget Holder must be able to demonstrate that the achievement of the qualification supports the business in a significant way in delivering its objectives. It is the responsibility of line managers to determine whether the attainment justifies a bonus award, and to submit a case accordingly. As a guide, the attainment of an NVQ Level 3 (or its equivalent) or higher qualification could be considered for an award.
Fairness and equality
1.109 It is the responsibility of line managers and budget holders to ensure that recommendations for bonus awards meet the criteria laid down in this instruction, and that the system works fairly. Managers are reminded that the department is committed to equal opportunities; they must therefore ensure that they avoid discrimination when recommending awards. Dep employees should receive equal reward (in terms of net pay) for comparable attainments; therefore recommending officers need to take into account the different tax and social security deductions applicable to DEL and Dep pay.
As a guide, for similar achievements, the gross amount for a DEL would have to be twice that of a Dep employee to ensure that both sets of employees enjoy approximately the same ‘take home’ award.
Garrison SBA Boards/Value of the Bonus Award
1.110 Garrisons are recommended to hold a monthly Special Bonus Awards Board to consider unit applications and the amounts to be awarded. Awards must be made on an individual basis, reflect the significance attributed to the employee's achievement, its benefit to the department and must be fair and consistent. Individual awards are to be restricted to a maximum of €1,500 (take home value/net). Exceptionally, for the most outstanding cases only, budget holders may recommend a bonus award which exceeds this amount. Such applications will require the personal endorsement of the Civil Secretary BFG, as well as the Budget Holder.
Recommendation and Approval
1.111 Applications for an LEC Special Bonus Award should be initiated by the employee’s line manager (recommending officer), and must be endorsed at a level no lower than Col/B2 or equivalent (normally the budget holder). Commanding Officers of the rank of Lt Col may also endorse applications for bonus awards, provided they have the necessary budgetary authority. Applications for bonus awards should be made using the flow chart at Annex G and the application form at Appendix 1 to Annex G. Recommending officers are not to inform individuals that their name has been put forward for a Special Bonus Award until the outcome of the application is known.
Letter of Congratulation
Line Managers are to inform the employee of the Special Bonus Award verbally and complete/present them with a letter of congratulations using the template at Appendix 2 to Annex G.
Revised: 1 JUL 15