SECTION 2 – Terms and Conditions of Service
SUB SECTION 2 – BONUSES, GRATUITY AND BENEFIT PAYMENTS

Christmas Bonus

2.002  An annual Christmas Bonus amounting to 6.34% of reckonable earnings will be paid on 30 November of each year to all Dep employees (except LEN, LSA and LSS grades) who, on 31 October, have been in employment since 1 July.  Reckonable earnings are defined as those earnings that the employee has received in accordance with these instructions during the 12 months prior to 31 Oct.

 

2.003  Dep employees except LEN, LSA and LSS  grades who, on their termination of employment before 31 Oct have been in employment for four months, will receive a Christmas Bonus amounting to 6.34% of reckonable earnings.  Reckonable earnings are defined as those earnings that the employee has received in accordance with these instructions from the preceding 1 Nov until termination date.  Payment will be made in the month following termination of all posts.  The entry on the payslip will read “Part Xmas Bonus”.

 

2.004  If a bonus has been paid in accordance with para 2.003 and the employee is due to receive a bonus in the same reckonable year, the previously paid bonus will be offset against the bonus in accordance with para 2.002.

 

2.005  Service in the LEN/LSA/LSS grades does not count towards qualifying service for the payment of a Christmas Bonus. 

 

2.006  Dep employees whose employment terminates will remain eligible to receive the respective bonus, provided they have completed the 8 week notice period or their definite contract comes to an end. Exceptions will be made where all or part of the notice period is waived with the written agreement of the line manager, or resignation is due to:

  1. The posting, on short notice, of the Head of Household.
  2. Domestic distress.
  3. Incapacity for health reasons (a medical certificate to this effect will be required).

 

2.007  Dep employees will not be eligible if:

  1. They have left their employment without completing the 8 week notice period, except in the circumstances described in para 2.006.
  2. They have been dismissed (or are under notice of dismissal) for disciplinary reasons or on grounds of inefficiency.
  3. They have resigned in order to avoid   dismissal.

 

2.008  Breaks in service of up to a total of three months are to be ignored in determining continuous service provided they were caused by resignation due to the in-theatre transfer of the Head of Household, on re-employment following redundancy or termination of a definite contract.  In addition where breaks in service exceed three months due to a waiting period for security vetting clearance to be issued these are also to be ignored provided an offer of employment, subject to security clearance being issued has been made.  This provision will not apply where a Dep has claimed a gratuity for his/her most recent period of service, in which case reckonable service towards a Christmas bonus will only count from re-employment.

 

2.009  If an employee who has fulfilled the eligibility criteria subsequently leaves employment there will be no liability to refund the bonus.

 

Leave Bonus

2.010  An annual leave bonus amounting to 2% of reckonable earnings will be paid, on 31 May of each year, to all Dep employees, except LEN, LSA and LSS  who, on 30 April have been in employment since 1 January.  Reckonable earnings are defined as those earnings that the employee has received in accordance with these instructions during the 12 months prior to 30 Apr.

 

2.011  Dep employees except LEN, LSA and LSS  grades who, on their termination of employment before 30 Apr have been in employment for four months, will receive a leave bonus amounting to 2% of reckonable earnings.  Reckonable earnings are defined as those earnings that the employee has received in accordance with these instructions from the preceding 1 May until termination date.  Payment will be made in the month following termination of all posts.  The entry on the payslip will read “Part Leave Bonus”.

 

2.012  If a bonus has been paid in accordance with para 2.011 and the employee is due to receive a bonus in accordance with para 2.010 in the same reckonable year, the previously paid bonus will be offset against the bonus in accordance with para 2.010.

 

2.013  Service in the LEN/LSA/LSS grades does not count towards qualifying service for payment of a leave bonus. 

 

2.014  Dep employees whose employment terminates will remain eligible to receive the respective bonus, provided they have completed the 8 week notice period or their definite contract comes to an end.  Exceptions will be made where all or part of the notice period is waived with the written agreement of the line manager, or resignation is due to:

  1. The posting, on short notice, of the Head of Household.
  2. Domestic distress.
  3. Incapacity for health reasons (a medical certificate to this effect will be required).

 

2.015  Dep employees will not be eligible if:

  1. They have left their employment before 31 May and without completing the 8 weeks notice period, except in the circumstances described in para 2.014.
  2. They have been dismissed (or are under notice of dismissal) for disciplinary reasons or on grounds of inefficiency.
  3. They have resigned in order to avoid dismissal.

 

2.016  Breaks in service of up to a total of three months are to be ignored in determining continuous service provided they were caused by resignation due to the in-theatre transfer of the Head of Household, or re-employment following redundancy or termination of a definite employment contract.  In addition where breaks in service exceed three months due to a waiting period for security vetting clearance to be issued these are also to be ignored provided an offer of employment, subject to security clearance being issued, has been made.  This provision will not apply where a Dep has claimed a gratuity for his/her most recent period of service, in which case reckonable service towards a leave bonus will only count from re-employment.

 

2.017  If an employee who has fulfilled the eligibility criteria subsequently leaves

employment there will be no liability for refund.

 

Gratuities

2.018  A gratuity will normally be paid within 2 months after the end of employment to Dep employees of the British Forces Germany, subject to the criteria set out at para 2.021 below, when they resign or are dismissed on grounds of redundancy or their definite contract ends.  There are also certain other circumstances whereby an individual may claim their gratuity and these are set out in para 2.021 below.

 

2.019  Dep employees who take up employment as a DEL must claim, if they are eligible, their gratuity at the end of their Dep employment.

 

2.020  The gratuity claim form is be issued by the relative LSU to all Dep employees on termination of employment with the Agency. If the individual wishes to claim a gratuity, the claim form is to be forwarded to DBS BFG DEP Pay Team for processing.

 

Eligibility

2.021

  1. To qualify for agratuity a Dep must:
    1. Have completed two years or more continuous Dep service with BFG.
    2. Have completed the 8 week notice period unless otherwise agreed with the line manager.  In these circumstances, the termination reason should be given as per drop down menu RLink e.g. Own Request (Y).
    3. Have been unable to complete the 8 week notice period because their resignation is due to:
      1. The posting, on short notice, of the Head of Household.
      2. Domestic distress.
      3. Incapacity for health reasons (a medical certificate to this effect will be required).
      Note:  If changing jobs and being re-employed by a different LSU there must be a gap in employment of at least one working day.
  2. Employees will not be eligible for the payment of a gratuity if:
    1. They have not completed the 8 week notice period, except in circumstances described in para 2.021a(3) above.
    2. They have been dismissed for disciplinary reasons or on grounds of inefficiency.
    3. They have resigned to avoid dismissal.
    4. When, on change of jobs, they remain employed with the same LSU e.g. Hohne/Fallingbostel .
    5. If the gap between employment with different Agencies is less than one day.
  3. A Dep who has to resign because of the in-theatre transfer of the Head of Household, is declared redundant or whose definite contract ends but will remain in-theatre, may:
    1. Transfer his/her reckonable service towards a gratuity in further employment with BFG, provided re-employment is within a period of six months from the date of resignation or redundancy.
    2. If eligible for a gratuity, accept immediate payment or claim payment within six months.
  4. Time Limit for Claims.  All claims for gratuity must be made within 6 months of leaving employment.
  5. Calculation of Gratuity.  Individuals who terminate their employment on or after this date will have their gratuity calculated at one third of the monthly average of regular earnings in the most advantageous 12 calendar months in a 36 calendar month period.  The 12/36 month calendar period is calculated backwards from the date of termination.  For example:

 

Example 1:

Date of Termination: 1 April 2012
Regular earnings to be considered: 1 April 2009 to 31 Mar 2010 = Year 1
  1 April 2010 to 31 Mar 2011 = Year 2
  1 April 2011to 31 Mar 2012 = Year 3
Regular Earnings: Year 1  = € 12000
  Year 2  = € 16000
  Year 3  = € 14000

In this example, year 2 would be the year on which the gratuity would be based. 

 

Example 2:

Date of Termination: 14 June 2013
Regular earnings to be considered: Jun 2010 to May 2011 = Year 1
(last full month’s salary) Jun 2011 to May 2012 = Year 2
  Jun 2012 to May 2013 = Year 3
Regular Earnings: Year 1  = € 15000
  Year 2  = € 12000
  Year 3  = € 11500

In this example, Year 1 would be the year on which the gratuity would be based.

 

The amount is then divided by 12 to obtain the average monthly earnings and then by three to obtain one third of the average month’s earnings.  This is then multiplied by the number of years served.  Part-years will be paid on a pro-rata basis rounded to the nearest 2 decimal places.

 

Note:  Unpaid absences do not count towards reckonable service and are deducted from the total years of service when calculating the amount of gratuity due.

  1. The Dep gratuity is considered to include compensation for potential loss of leave and Christmas bonuses.  Once a gratuity has been paid it effectively writes off the period of reckonable service that it covers and that service cannot therefore count towards any other payments which are determined by reckonable service i.e. leave and Christmas bonuses.  See paras 2.002 - 2017.

    Note:  If a gratuity is claimed, the qualifying period for entitlements to Christmas and leave bonuses commences again from the date of re-employment.
  2. Continuous Service.  For employees who are not contracted to work for the full 52 weeks per year, e.g. bus escorts and school crossing attendants, the periods for which they are not contracted to work, e.g. school holidays, will not count as breaks in service provided the employees were employed under single open ended contracts.
  3. Payment of Gratuities.  The gratuity will be calculated after the final payment of salary has been made and is subject to National Insurance contributions.  Payments will be made as follows:
    1. Employees Leaving Theatre. Employees must submit a claim requesting payment of a gratuity. Payments will be processed automatically within 2 months from date of termination and dispatched to a UK or German bank account as requested in writing, by the employee.
    2. Employees Remaining in Theatre.  Dependants will be advised of their eligibility to a gratuity by the LSU they are leaving and given the option to either claim or to transfer their reckonable service to a subsequent BFG employment.  Claims may only be paid where employment has ceased for at least one full working day and on transfer to another agency.
  4. Appeal Procedure.  Any employee who feels they have been unfairly denied a gratuity may seek redress through the Dependants complaints procedure (see Annex R).

 

Death Benefit

2.022  A lump sum payment equivalent to two months salary will be paid to the next of kin on the death of a Dep who has been employed for at least three months.  Where death is caused as a result of an accident at work, the payment will be equal to three months salary irrespective of how long the Dep has been employed.

 

Revised: 1 JUL 15