SCIENCE & TECHNOLOGY FACILITIES COUNCIL

NOTE ON THE PAY AND GRADING SYSTEM

CONTENTS

1. Responsibility for Pay Determination

4. Overview of the Pay and Grading System (Covering Staff in Bands H to A)

7. Band Structure

13. Performance Related Pay

15. Poor Performance

16. Pay on Appointment

18. Pay on Promotion

21. Temporary Promotion and Pay

24. Pay on Re-banding Graduate Recruitment Scheme Entrants

25. Pay on Downbanding and Reversion

30. Retention of Pay on a MarkTime Basis

32. Starting Pay on Re-employment

APPENDIX A Summary of Pay Progression Arrangements for Staff in Pay Bands

H to A

APPENDIX B STFC Pay Scales for Staff in Pay Bands H to A

APPENDIX C Pay Arrangements for Students

APPENDIX D Pay Arrangements for Apprentices

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NOTE ON THE PAY AND GRADING SYSTEM
Responsibility for Pay Determination

1. The Department for Business, Innovation and Skills (DBIS) has delegated authority
to STFC for pay matters (though it retains responsibility for setting the pay for the
Council's Chairman and Chief Executive).

2. The pay and grading system described in the following paragraphs and in
Appendix A, covers most STFC staff. The exceptions are Directors, those employed on
personal contracts (normally at the most senior level), students and apprentices. The pay
arrangements for students and apprentices are summarised in Appendices C and D
respectively.

3. The pay rates and certain key, pay-related conditions of service of STFC staff in
Bands H to A are subject to a wider agreement between a consortium of five Research
Councils (STFC, AHRC, BBSRC, EPSRC and ESRC) and the recognised Trade Unions. These
arrangements are governed by a Pay Framework Agreement.

Overview of the Pay and Grading System

4. The pay and grading system is based on:

Eight main pay bands (7 of which are common across the Research Councils
consortium)
A common pay system and annual pay award date for all staff
A job evaluation system which addresses equal value issues (see paragraph 8)

5. The system is designed to:

Assure staff that their pay will be determined fairly
Provide for equity of treatment whilst also providing flexibility to deal with
particular pay problems
Distinguish between different levels of performance but not discriminate unfairly
on grounds of age, sex, ethnic origin, disability, working patterns, sexual
orientation or religious belief.
Maintain openness regarding pay and promotion arrangements.

6. The annual pay award is effective from 1st July and is negotiated with the Trade
Unions taking into account affordability, cost of living changes and pay comparability.

Band Structure

7. Most employees are placed within one of the eight main bands (Bands H to A). The
exceptions are Directors, those employed on personal contracts (normally at the most
senior level), students and apprentices.

Job evaluation

8. The Job Evaluation and Grading Support (JEGS) and Job Evaluation for Senior Posts
(JESP) systems are the recognised job evaluation tools in STFC and underpin the
Council's grading system. The JEGS scores associated with each Band are shown
below.

BAND JEGS SCORE

H 721 + (or JESP score of 9+)

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G 686 720

F 601 685

E 521 600

D 421 520

C 321 420

B 211 320

A 210 or less

Standard Pay

9. A Standard Pay point exists in each band. The value of Standard Pay is informed by
market data and is negotiated with the Trade Unions.

Minima and Maxima

10. Each band is defined by a minimum and maximum salary rate, related to Standard
Pay in each band as follows:-

Minimum = 90% of Standard Pay Maximum = 115% of Standard Pay

11. The arrangements for pay progression within a band are summarised in Appendix
A. The pay scales are given in Appendix B.

Personal Maxima

12. When, for specific reasons relating to a previous pay agreement, an individual has
expectations of a higher band maximum than the band they currently occupy they will be
entitled to retain a personal maximum. Individuals with a personal maximum will be
notified of their revised maximum each year.

Performance Related Pay

13. The Council operates a staff appraisal system which involves setting objectives at
the beginning of the review period, monitoring performance and assessing performance at
the end of the review period. The review period runs from 1 April to 31 March each year.

14. Higher levels of performance offer employees the opportunity to earn enhanced
pay progression (consolidated or non-consolidated depending on position within the pay
band) and/or a non-consolidated bonus payment. A summary of the pay progression
arrangements is given in Appendix A. The precise arrangements, which may vary in detail
from year to year, will be published separately.

Poor Performance

15. Staff whose conduct, performance or attendance is unsatisfactory, but who are
subject only to informal action, will receive no performance pay increase, although the
general increase in the annual pay settlement (revalorisation) will be applied. Ongoing
performance will be monitored. From the date on which conduct, performance or
attendance returns to the fully acceptable level during the relevant pay settlement year,
the performance pay increase will be applied and may, at management discretion, be
backdated to the start of the pay settlement year (rather than the date of return).

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16. Staff in the formal stages of the unsatisfactory Conduct, Performance or Attendance
procedure will receive no pay increase (subject to not falling below the minimum of
the pay band). Ongoing performance will be monitored. From the date on which
conduct, performance or attendance returns to the fully acceptable level during the
relevant pay settlement year, pay will be revalorised, effective from the date of
return. There will be no entitlement to a performance pay increase for the relevant
pay year

Pay on Appointment

17. The normal expectation is that most recruits will enter at the band minimum.
Where higher starting pay is used it will be determined by a number of criteria including
the level of qualifications, skills, experience, the market rate for the job, difficulty in
recruitment and the scarcity of skills for the job. Consideration of higher starting pay will
also have regard to the desirability of avoiding the creation of anomalies between new
entrants and serving members of staff. Specific recruitment and retention problems will be
addressed by the use of a Recruitment and Retention Allowance (RRA). Starting salary
above the minimum will not normally exceed Standard Pay and exceptions to this require
the approval of the Director, Corporate Services.

Pay on Promotion

18. On promotion, staff will move to the more favourable of the minimum of the new
band or their existing pay plus 10%. Where the resulting figure is between band minimum
and Standard Pay it will be rounded down to the nearest Step; the balance will be paid as
a non-consolidated lump sum. Normally no one will be promoted to a salary above the
Standard Pay in the new band.

19. In calculating pay on promotion, allowances are not normally taken into account.
The only exception is Recruitment and Retention Allowance (RRA).Where a RRA is not
payable in the higher band, or is payable at a reduced level, account may be taken of it in
applying the promotion increase, to ensure that the promotee does not suffer a reduction
in overall pay as a result of being promoted.

20. The pay appropriate to the higher band will normally come into effect on the date
the duties of the higher band are taken up. Promotees should be released to take up their
new duties as soon as possible and normally within 6 weeks at the most. If, exceptionally
this is not practicable, the increased salary on promotion will be payable 6 weeks from the
date of notification of promotion.

Temporary Promotion and Pay

21. Employees on temporary promotion are entitled to the same terms and conditions
as employees on substantive promotion. They are entitled to be considered for pay
increases in both their temporary and substantive posts. This means that where a period
of temporary promotion extends over the implementation of a pay award performance
assessment is required in respect of service at both band levels.

22. Employees promoted substantively to a pay band in which they currently hold
temporary promotion will retain their existing higher band pay and will not receive a
further increase for the substantive promotion.

23. An employee who gained a pay increase whilst on temporary promotion and then
reverted to their substantive band, will, if re-promoted (either substantively or
temporarily) be paid at least the salary they received previously on temporary promotion;
with the exception that there is no entitlement to promotion rules that operated prior to
the date of the re-promotion.

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Pay on Re-banding Graduate Recruitment Scheme Entrants

24. Subject to satisfactory progress, Graduate Recruitment Scheme entrants are re-
banded from Band C to Band D (usually within 2 years of appointment) entering the higher
band at the Minimum.

Pay on Downbanding and Reversion

25. Downbanding is defined as the transfer from one substantive pay band to a lower
substantive pay band by mutual agreement between management and an individual. It
may be the direct result of management action or an individual request.

26. In cases of downbanding the aim is (as far as is practicable) to place the employee
at the point they would have reached if they had started and remained in the lower band.

27. Reversion is defined as the return to a lower substantive pay band following a
period of working in a higher pay band on temporary promotion terms.

28. In cases of reversion the aim is to ensure that the individual is no worse off than if
they had remained in the lower band. Where a period of temporary promotion extends
over the implementation of a pay award then performance assessment is required in
respect of service at both band levels.

29. Where downbanding or reversion are alternatives to redundancy then if existing

pay is more favourable it may be retained on a personal mark-time basis (see paragraphs
30 and 31 below).

Retention of Pay on a Mark-Time Basis

30. If the application of the normal rules results in a reduction in pay and the rule in
question allows marking time to apply, all or part of the excess of pay previously in issue
over the new substantive rate may be retained. This normally results in the retention of
pay in issue on the day before the changes in circumstances. The retained rate of pay
becomes the mark-time rate and the excess over substantive pay is known as the mark-
time element.

31. Mark-time rates of pay may be increased by the application of retrospective

increases in substantive pay, provided that the effective date for payment was before the
date of the change in the individuals circumstances. The mark-time element of pay is
eroded by subsequent increases such as consolidated pay increases in the new pay band,
band changes including restructuring, increases in RRA and introduction of special pay
rates, personal pay rates and other pay related allowances.

Starting Pay on Re-employment

32. Starting pay on re-employment will be determined in the same way as for any other
new recruit (see paragraph 17 above). Higher starting pay may be awarded to reflect any
exceptional relevant experience gained during the break in service.

33. Employees who are re-employed following retirement in a pay band lower than that
occupied on retirement and are then subsequently promoted will have their pay on
promotion calculated in accordance with the normal rules.

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 APPENDIX A

SUMMARY OF THE PAY PROGRESSION ARRANGEMENTS FOR STAFF

IN PAY BANDS H to A
1. Each Pay Band has a Standard Pay (SP) point, a minimum (90% of SP) and a
maximum (115% of SP). There are 10 x 1% pay steps between Band minimum and SP,
set at 91% of SP, 92% of SP etc. There are no fixed steps between SP and Band maximum.

2. New recruits join the appropriate Band on a pay step between minimum and SP,
with the precise position in Band being based on the experience they bring to the job and
an assessment of how long it will take for them to become 'fully competent' in the job -
which merits being paid at the SP rate.

3. Subject to satisfactory performance, employees who are below SP at the time of the
annual pay settlement (effective date 1 July) will progress to SP at a rate determined by
their performance.

4. Where someone joins at the minimum, and their performance is consistently

Commensurate (i.e. fully satisfactory), they will progress to SP via 5 x 2 step (i.e. 2% of
SP) annual progression increases. Staff whose performance is consistently Exceptional
will get to SP more quickly - via 3 step (i.e. 3% of SP) annual progression increases.
Those joining higher up the band will take proportionately less time to progress to SP, with
the rate again varying with performance level.

5. So, subject to the pay negotiations, employees below SP will receive a progression
payment on 1 July each year, with the value of the progression payment depending on
their performance. (Those who join part-way through the pay year (July-June) may have
their progression increases pro rated to reflect this.)

6. Having reached SP, there is scope for further, performance-related pay progression.
Consistently Commensurate performers will progress to 105% of SP; consistently
Exceptional staff can reach 115% of SP (Band maximum). Performance payments above
SP are a mix of consolidated payments (i.e. added to basic salary) and non-consolidated
(i.e. not added to basic salary) payments.

7. To keep the costs of performance-related pay within affordable bounds, guideline

distributions are used to inform the allocation of staff to the various performance
categories.

8. The basic pay arrangements are normally supplemented each year by performance
bonus arrangements, which can be used to recognise individual and/or team performance.

9. Guidance on the detailed implementation of the pay award will be published each
year.

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 APPENDIX B

1 JULY 2009 PAY SCALES FOR STFC PAY BANDS H TO A

(Note: because of the freeze on public sector pay from 2010-2011, the 2009 pay
scales are still current, with the 2012 pay award pending.)

2009
RC Grade H G F E D C B A

86,66 69,72 54,64 43,16 34,00 26,95 20,95 16,84

Max 3 1 9 4 2 8 6 7
110% 82,89 66,69 52,27 41,28 32,52 25,78 20,04 16,11
Cap 5 0 2 7 3 6 5 5
105% 79,12 63,65 49,89 39,41 31,04 24,61 19,13 15,38
Cap 7 8 6 0 5 4 4 3
78,37 63,05 49,42 39,03 30,74 24,37 18,95 15,23
14 3 2 1 4 9 9 2 6
77,62 62,44 48,94 38,65 30,45 24,14 18,76 15,08
13 0 6 6 9 3 4 9 9
76,86 61,84 48,47 38,28 30,15 23,91 18,58 14,94
12 6 0 0 4 7 0 7 3
76,11 61,23 47,99 37,90 29,86 23,67 18,40 14,79
11 3 4 5 8 2 5 5 6
75,35 60,62 47,52 37,53 29,56 23,44 18,22 14,65
SP 9 7 1 4 6 2 2 0
74,60 60,02 47,04 37,15 29,27 23,20 18,04 14,50
9 6 1 4 8 1 7 1 3
73,85 59,41 46,57 36,78 28,97 22,97 17,85 14,35
8 2 5 0 3 5 2 8 7
73,09 58,80 46,09 36,40 28,67 22,73 17,67 14,21
7 9 9 5 8 8 8 6 1
72,34 58,20 45,62 36,03 28,38 22,50 17,49 14,06
6 5 2 0 3 4 4 3 4
71,59 57,59 45,14 35,65 28,08 22,26 17,31 13,91
5 1 6 4 6 8 9 1 8
70,83 56,99 44,67 35,28 27,79 22,03 17,12 13,77
4 8 0 0 2 2 5 9 1
70,08 56,38 44,19 34,90 27,49 21,80 16,94 13,62
3 4 4 5 6 7 0 7 4
69,33 55,77 43,71 34,53 27,20 21,56 16,76 13,47
2 0 7 8 1 1 6 5 8
68,57 55,17 43,24 34,15 26,90 21,33 16,58 13,33
1 7 2 3 6 5 1 3 1
67,82 54,56 42,76 33,78 26,61 21,09 16,40 13,18
Min 4 5 9 0 0 8 0 5

1% of
SP 754 606 475 375 296 234 182 147

Note: 11, 12 & 13 are shadow steps for staff progressing from/through SP.

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 APPENDIX C
PAY ARRANGEMENTS FOR STUDENTS

The pay arrangements for students are shown below:

Type of Placement Pay

Sandwich Student Step 2 of Band B

Year in Industry Student Step 2 of Band A

Vacation students Step 2 of Band B or Band A *

*
Depending on work undertaken.

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 APPENDIX D
PAY ARRANGEMENTS FOR APPRENTICES

Apprentice pay is reconsidered each year as part of the annual pay negotiation. The rates
shown below are effective from 1 September 2011 (2012 pay award pending).

Apprentice Year 2011 Rates

1 10,455

2 11,966

3 13,727

4 15,489 85% of Band B SP (18,222)

The underpinning National Minimum Wage (annualised rates) effective from 1 October
2012 are tabulated below:

Age 1.10.12

21+ 13,519 (i.e. 6.19 x 52 x 42)

18-20 10,876 (i.e. 4.98 x 52 x 42)
16-17 8,037 (i.e. 3.68 x 52 x 42)

Apprentices are entitled to receive the National Minimum Wage if they have completed
the first year of their employment and have reached the age of 19.

PAY ON COMPLETION OF APPRENTICESHIP

On confirmation by the Apprentice Committee of the satisfactory completion of their

apprenticeships, former Apprentices are re-banded to Band B. Their basic salary will
normally increase to Band B Standard Pay (18,222).

There is, however, no restriction on Apprentices who are in their final stages of sign off
or who have completed their training applying for vacancies above that of their default
Band B, provided they meet the relevant criteria for the post(s).

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