National Agreement For The Engineering Construction Industry
National Agreement For The Engineering Construction Industry
National Agreement For The Engineering Construction Industry
2013 2015
NAECI 2013 2015
Table of contents
Foreword - by the NJC Executive Chairman 5
Part 3: Appendices 67
A Schedule of rates and allowances 67
B National Joint Council for the Engineering Construction Industry 89
C Trades union matters 94
D Employment relations arrangements on Major Projects and R & M Sites 99
E NJC dispute adjudication panels (Stage 4): practice directions 115
F NJC dismissal arbitration panels: practice directions 120
G Non-UK contractors and non-UK labour on engineering 128
construction sites
Chairmans
Foreword
The Engineering Construction Industry is critical to the success of the UK economy. The
stakeholders in this industry construct and maintain vital projects such as power
stations, oil and process plants and deliver other large scale infrastructure investments.
The means of managing labour relationships to ensure project completions to time and
budget has rested with the National Agreement for the Engineering Construction
Industry (NAECI) since 1981. The NAECI was ground breaking, and with subsequent
revisions including this one, has remained so for more than 30 years.
Thus it remains dynamic and the Signatories to it continue to recognise the need to
increase its range and flexibility to meet tomorrow's challenges.
The NAECI is a solid and supportive Agreement that brings benefits to all its
stakeholders and I am confident that together with its developing expert Guidance Notes
it will remain the agreement of choice for engineering construction as its stakeholders
strive to deliver what it promises.
The challenge to us all is to demonstrate that we can work effectively within the NAECI,
that we can work together to add value ensuring our projects are productive and free
from damaging unprocedural action as well as achieving the ultimate goal of completing
our projects on time and within budget.
That is the recipe for success for both the Engineering Construction Industry and our
collective Agreement - the NAECI.
Jock Simpson
NJC Executive Chairman
1.2 PARTIES
The signatories to the NAECI are:
(a) For the trades unions:
Unite the Union www.unitetheunion.org.uk
GMB www.gmb.org.uk
(b) For the employers:
ECIA (Engineering Construction Industry Association) www.ecia.co.uk
TICA (Thermal Insulation Contractors Association) www.tica-acad.co.uk
SELECT (Electrical Contractors Association, Scotland) www.select.org.uk
1.3 SCOPE
(a) Definition
The following work carried out on site by contractors in membership of the
signatory employers associations shall be included within scope of the NAECI:
(i) Engineering construction projects
Structural steel erection, mechanical, electrical, instrumentation and insulation
engineering construction project work (and scaffolding in support of such
work) on onshore engineering construction facilities, and expert dismantling of
such facilities, anywhere in the United Kingdom mainland, or otherwise as
agreed by the NJC.
1.4 NJC
The final authority on the scope, interpretation and application of the NAECI, and the
principal responsibility for its review, development and continuous improvement shall
rest with the signatory parties, acting together as the National Joint Council for the
Engineering Construction Industry ('the NJC').
The establishment, constitution, objectives and duties of the National Joint Council for
the Engineering Construction Industry are fully set out in Appendix B to this National
Agreement.
1.5 DURATION
(a) Duration and revision
The NAECI will remain in effect indefinitely. Revision shall be by agreement of the
NJC.
(b) Periodic review
The terms and conditions of employment prescribed in the NAECI shall be reviewed
by the NJC typically every 2 or 3 years, and in any event no more frequently than
annually. Unless the parties agree otherwise, the implementation date for terms
agreed in a review shall not fall earlier than 6 months after the review has been
concluded.
(c) Termination
If any party wishes to terminate its involvement in the NAECI, 12 calendar months'
notice of intention shall be submitted in writing to the NJC Executive Chairman and
the other signatory parties.
1.6.3 Agreement between SELECT and the National Joint Council for the
Engineering Construction Industry
It is agreed that SELECT, in recognition of the value to contractors and clients on Major
Projects of working to a common agreement, shall become a Signatory to the NAECI with
effect from 1 January 1990. Subject only to the qualifications below SELECT fully
supports the use of the NAECI on Category 1 Major New Construction Projects in
Scotland. On all other Categories, electrical contractors in Scotland will continue to
operate under the SJIB Working Rules. These have provided stability for many years in
the electrical contracting sector, and SELECT will continue to promote their use.
However when, after due consideration and consultation with its contractors, the client
of all other Categories decides that the NAECI should apply to the electrical contracting
work, then SELECT and its members will comply.
When electrical contracting work is undertaken under the NAECI, electrical contractors
will continue to operate the SJIB Holiday and Welfare Credit Scheme and where
appropriate a top-up arrangement will apply to electrical workers in respect of holiday
pay and welfare benefits to ensure parity with comparable benefits under the NAECI. In
respect of annual holidays parity with the NAECI will be achieved by the accrual of some
additional days of holiday to electrical workers depending on the length of time on site.
Under this Agreement electrical contractors will allow in their tender price for contracts
adequate levy rates, to be determined by SELECT, which will be used to meet SELECT's
agreed commitments to the funding of the NJC. These rates of levy will be reviewed
from time to time.
SELECT will be allocated one seat on the NJC which may be occupied by the principal
nominated representative or the nominated alternate representative in the absence of
the principal.
1.7 COMMENCEMENT
All provisions of the revised NAECI as set out in the present document shall come into
effect from Monday 7 January 2013, subject to specific transitional arrangements
relating to existing incentive bonus arrangements (see NAECI 19.5).
2. SAFETY
The signatory parties reaffirm their commitment to work together at all levels to help
maintain and further improve the exemplary safety record of the United Kingdom
engineering construction industry.
The NJC Guide to Health, Safety and Welfare, published as a separate booklet, sets out
detailed provisions on current industry good practice for employers, employees, trades
unions and safety representatives, so that the highest standards of safety provision,
communications and behaviour are achieved on all work carried out in scope to the
NAECI.
3.2 SKILLS
(a) Fullest use of skills
Employees shall:
(i) Perform any work safely within their level of competence as required by their
employer.
(ii) Acquire additional skills as required by their employer to meet the needs of the
job.
(iii) Assist with the training of others where they are competent to do so.
Employees' competence is to be determined by management, taking into
account all relevant information, including any representations made by a duly
appointed statutory safety representative acting in accordance with his/her
functions under the Health and Safety Work Act 1974 and associated
regulations. Other sources of relevant information may include (but need not
be limited to):
4. DIRECT EMPLOYMENT
The NAECI is founded on the principle of direct employment. The signatory parties
affirm their commitment to this principle.
Accordingly, all individuals employed on work within scope of the NAECI by companies
in membership of a signatory employer association shall be employed directly, in full
compliance with NAECI terms and conditions.
Note: Where individuals are subject to United Kingdom income tax and social security,
'direct employment' for these purposes means employment (on a contract of
employment) to which PAYE income tax and Class 1 national insurance contributions
are applicable. All forms of self employment are expressly prohibited.
5. STARTING EMPLOYMENT
5.1 RECRUITMENT
When recruiting people or deploying existing employees, from whatever source,
employers have the right to select whomsoever they consider to be the most suitable for
the tasks in question.
5.4.2 Grades
(a) Skilled Working Chargehand (Grade 6)
Will be selected from Advanced Craft employees (Grade 5) and required, in addition
to the work of that grade, to undertake supervisory duties for the employer.
(b) Advanced Craft (Grade 5)
Employees will be designated as Advanced Craft grade if:
(i) They have undergone a form of training and have achieved a level of
competence recognised by the NJC and have been awarded a VQ Level 3.
Examples include:
ECITB Apprenticeships
ECITB NSDS (not available after 31 December 2008)
ECITB Technical Training
Other schemes agreed and provided by the appropriate industry lead
training body (e.g. CITB-Construction Skills for scaffolders, NET for
electricians and TICA for thermal insulation engineers).
OR
(ii) They have a VQ Level 3 which is recognised by the NJC and awarded through
ACE (see NAECI 5.4.5 below) or by a similar arrangement provided by another
industry lead training body, approved by the ACE Industry Steering Group.
OR
(iii) They can demonstrate that they have worked as an Advanced Craft employee
(Grade 5) in the engineering construction industry prior to 1 June 1997.
AND
They have completed 2 or more years in the engineering construction industry in
the Craft grade (Grade 4) and agree to comply fully with the requirements of NAECI
3.2(a) to (c).
(c) Craft (Grade 4)
Employees will only be designated as Craft grade if they possess the level of
competence required and the mandatory trade specific units of competence for
working in the engineering construction industry under ECITB Technical Training.
Achievement of this level of competence will have enabled individuals to qualify for
assessment for a VQ Level 3.
(d) Operatives (Grades 1, 2 or 3)
When Operatives are employed who are new to the Industry, they will be classified
as Grade 1 and will serve a probationary period of 3 months.
Experienced operatives may be engaged by an employer and classified as Grade 2
or 3 depending on the nature of the work being undertaken. When required by their
employer they will apply all the skills in which they are competent to the required
standards as defined by ECITB Technical Training. Competent Operatives may also
be engaged in work that involves company specific skills. Such company specific
skills will be limited to those previously undertaken by semi-skilled workers (e.g.
fork-lift truck driving, storekeeping, etc).
If and where appropriate, any Operative may be registered on an ECITB Technical
Training course, although the work that they are engaged to do may provide no
opportunity for training or assessment.
NAECI 3.2(a)), and applying the principle of substantial equivalence to the criteria
set out in (a)-(e) above.
Note: The ECIA/NARIC Database of Overseas Engineering Construction Qualifications
analyses the contents of various EU and non-EU industry qualifications and
compares these with the main UK industry occupational standards administered
by the ECITB. It is available to member and non-member organisations on a
subscription basis. Further details may be obtained by contacting the ECIA.
5.4.4 Apprentices
(a) Directly employed apprentices
NAECI Appendices A.2(b) and A.8(b) set out rates of pay and incentive bonus
arrangements applicable to apprentices directly employed by contractors on in-
scope work under either of the following schemes:
(i) ECITB Apprenticeship Scheme.
(ii) 'Non-ECITB' apprenticeships (i.e. apprentices trained under bona fide company
training schemes to ECITB Apprenticeship Scheme standards).
(b) Electrical and thermal insulation apprentices
Apprentices employed by electrical and thermal insulation contractors are covered
by their own industry agreements, except that incentive bonus arrangements may
comply with those of non-ECITB apprentices directly employed under the NAECI
(see NAECI Appendices A.2(c)(vi) and A.8(c)(vii)).
6. PAY
6.1 PAYMENT OF WAGES
Wages may be paid weekly, fortnightly, 4 weekly or monthly, by cheque or electronic
transfer, in accordance with company policy.
of the employment to which the test relates. This information should normally be
given at the time the company issues the invitation.
The company should make clear that it is supplying a start date for information
purposes only, with no contractual commitment.
An individual who has been invited to a welding skills test and who duly: completes
the test successfully; accepts the first offer of employment from that employer;
commences employment as instructed; and completes the first week of
employment, will be entitled to be paid 8 hours at basic rate only (as payment for
the time taken for the welding test), when the first weeks wages are paid.
(d) Agreed travel expenses
Where a prospective employee attends a welding skills test at a company's
invitation the company should reimburse him/her for such reasonable travel
expenses as have been agreed in advance and demonstrably incurred in travelling
to and from the test venue.
Where the prospective employee's claim includes travel by public transport or taxi,
the company should require him/her to produce tickets and/or receipts.
(e) Shift and overtime rates
Proficiency payments in categories B, C, D and E of NAECI Appendix A.3 are not
cumulative and shall not be used for the calculation of shift and overtime rates.
7. WORKING HOURS
7.1 BASIC WORKING WEEK
(a) The basic working week shall consist of 38 normal working hours.
(b) Unless (c) below applies, the basic working week shall be worked over 5 normal
working days, Monday to Friday. Wherever this standard Monday to Friday week is
worked, normal working hours on Monday to Thursday shall be 8 hours. On Friday,
6 hours will be worked in addition to which there will be one break to be taken in
the middle of normal working hours or earlier. This break will be of 30 minutes
duration and is unpaid.
(c) Alternatively, the basic working week may be worked over any 4 or 5 consecutive
normal working days. Wherever the basic working week includes a Saturday and/or
Sunday, the normal hours worked on those days and any overtime hours shall be
paid for as follows:
(i) Normal hours worked on Saturday
Payment of Overtime Rate A shall be made for normal hours worked on
Saturday before noon up to a maximum of 4. Any normal hours in excess of 4
worked before or after noon on Saturday shall be paid at Overtime Rate B.
(ii) Normal hours worked on Sunday
All normal hours worked on Sunday shall be paid at Overtime Rate B.
(iii) Overtime worked on Saturday and Sunday
All overtime worked on Saturday or on Sunday up to midnight shall be paid at
Overtime Rate B.
(iv) Overtime worked on days other than Saturday or Sunday
Overtime worked on any day other than Saturday or Sunday shall be paid in
accordance with the weekday overtime provisions under NAECI 7.4(e). For
night has simply overlapped into the next morning, Overtime Rate B should
continue to be paid until the task is completed.
(iv) Day work employees who work during the day beyond the midday meal break
and who undertake night work the same night shall be paid overtime Rate A up
to midnight. From midnight until the end of the shift employees shall be paid
Overtime Rate B.
(v) Night working employees who are required to change over to day work shall
normally be warned at least 24 hours in advance of the necessity for such a
change and shall take a minimum break of 8 hours before starting on day work.
Any loss, up to a maximum of 8 normal dayshift hours, which results from the
observance of this rule, shall be compensated for by payment for the lost hours
at the basic rate. If the last period of night work of an employee transferring
to day work ends at or after 7.00am, they shall not be required to commence
their first period of day work on that day.
(b) Afternoon shift
(i) 38 hours shall normally be worked over 5 afternoons from Monday to Friday.
Alternatively, the afternoon shift may be worked over any 4 or 5 consecutive
afternoons in the week.
(ii) The normal starting time shall not be earlier than 12.00 noon and the normal
finishing time not later than 11.00pm. The precise arrangements including the
time of the unpaid meal break will be determined locally, but no afternoon shift
shall be of less than 6 hours.
(iii) The shift rate is set out in NAECI Appendix A.
(c) Double day shift
(i) The shift week shall consist of 38 hours normally worked over 5 days Monday
to Friday by 2 separate shifts, one working morning shift and the other
afternoon shift and the 2 shifts shall rotate, either on a 1, 2 or 4 week cycle.
Alternatively, each such shift may be worked over any 4 or 5 consecutive days
in the week.
(ii) Each shift shall have an unpaid half hour meal break. Employees shall be
entitled to a paid 10 minutes refreshment break except on Fridays or such day
determined locally (NAECI 7.5(b) refers). The precise arrangements will be
determined locally, but any variation to the above is subject to prior approval
by the NJC.
(iii) Under these arrangements the double day shift rate for normal hours is as set
out in NAECI Appendix A.
(iv) Where shift workers are required to work overtime beyond the normal shift
finishing time they shall receive Overtime Rate A for the first 7.5 hours or part
thereof.
(v) If they are required to work further time beyond the first 7.5 hours of overtime
they shall receive Overtime Rate B for up to a maximum of an additional 7
hours. If, however, the task is completed part way through this 7 hour period,
they shall be allowed to cease work but shall receive a payment at Overtime
Rate A from the time they complete the task up to the balance of the 7 hours.
(vi) Employees who are required to work the additional 7 hours overtime as in (v)
above will not be required to work the following shift and will receive Overtime
Rate A for the normal shift hours for that day (provided it is a normal work day).
(vii) Saturday and Sunday overtime hours shall be paid in accordance with NAECI
7.4(f).
(viii) There shall be a daily unpaid meal break of 30 minutes duration which s h a l l
not be included in the normal working hours. There shall be one paid
refreshment break of 10 minutes duration. Timings and facilities for the meal
and refreshment breaks are at the discretion of the employer after consultation
with the local full time officers of the signatory trades unions.
(ix) In accordance with the provisions of NAECI 8.1 an employee will be guaranteed
payment at basic rate for shift hours which would normally have been worked
in accordance with this shift schedule during the calendar week.
(x) Accommodation allowance shall be paid on a 7 day basis except in the case of
a broken week. An employee who is absent or unavailable for work during
working hours on a scheduled working day without good cause or without
permission, shall forfeit the accommodation allowance payable for that day. If
such absence occurs on either the first day or the last day of the shift cycle,
the accommodation allowance applicable to the rest days will be forfeited
unless they are worked.
(xi) The shift patterns will not affect entitlement to redundancy payments under
NAECI 16.5 since these are related to weeks of service.
(xii) For the purposes of NAECI 16.2 a 'week of notice' shall be interpreted as 7
consecutive days, provided that it includes at least 38 scheduled working
hours. However, notice given by either party shall not have to conform to the
traditional Friday to Friday pattern.
(g) Rolling night shifts
The shift rate for rolling shifts which precisely follow the patterns of (f) above
(rolling day shifts) shall be paid in accordance with the rolling night shift rate in
NAECI Appendix A.
(h) The 9-day fortnight
(i) The basic working week of 38 hours shall be distributed over 9 working days.
(ii) In week 1, the basic working week shall normally be worked Monday to Friday.
In week 2, the basic working week shall normally be worked Monday to
Thursday. Subject to NAECI 7.2(b), the normal starting time will be no earlier
than 7.00am and the finishing time no later than 6.00pm. With the exception
of Fridays in week 1 and Thursdays in week 2 when the minimum will be 6
hours, each working day must be of at least 9 hours duration, unless prior NJC
approval to the contrary has been obtained.
(iii) Variation of the basic working week and the normal working hours may be
determined locally by the parties, but any variation to the above is subject to
prior approval by the NJC.
(iv) The meal break of 30 minutes duration on each day is unpaid and is not
included in the normal working hours. Timings and facilities for the meal
break are for local agreement.
(v) Employees shall be entitled to take a paid 10 minutes refreshment break during
the morning, except on Fridays in week 1 and Thursdays in week 2. Employers
have the flexibility to plan the most appropriate method and timing of the
break (NAECI 7.5(b) refers).
(vi) The overtime rate specified within NAECI Appendix A for weekday and
weekend overtime applies to overtime hours worked in excess of the scheduled
working day, within the provisions of NAECI 7.4(e) and (f).
(vii) Each of the 8 public holidays will be paid in accordance with NAECI 10.3.
(viii) All employees who have been continuously employed for not less than 4 weeks
shall be guaranteed employment for the scheduled basic hours of work for
weeks 1 and 2 respectively.
(ix) In the event of work not being available for all or part of the scheduled week,
employees covered by the guarantee will be assured earnings equivalent to
their basic rate for the scheduled basic hours of work in weeks 1 and 2
respectively.
(x) The conditions of the guarantee are in accordance with NAECI 8.1 except that,
in the case of NAECI 8.1(c)(iii), the proportionate reduction in the period of
guarantee as a result of a holiday will be equivalent to the scheduled basic
hours for that day under the 2 week work cycle.
7.4 OVERTIME
(a) Obligation to work overtime
It is an obligation of employment under the NAECI to work overtime as required by
management to meet the needs of the job. No consideration will be given to
practices such as 'one in all in'.
Opportunities to work overtime may be withdrawn by the employer in the event of
unprocedural action, any other unauthorised stoppage of work or unauthorised
absence.
(b) Regular overtime
Where the programme of work requires regular overtime, employers will consult
with the signatory trades unions.
(c) Intermittent/emergency overtime
Intermittent or emergency overtime shall be arranged between management and
their employees.
(d) Overtime payments - general principles
The provisions of NAECI 7.4(d)(i), and 7.4(e) 7.4(i) below shall be applied subject
to NAECI 7.4(j).
(i) Overtime is normally calculated on a daily basis. Employees shall be required
to work the full normal hours of the day before overtime is reckoned.
(ii) Where any of the following occurs during normal working hours, the time
involved shall be treated as worked hours for the purposes of qualifying for
overtime payments under (i) above:
The employee is absent with the employer's permission;
The employee is absent through certified sickness; or
8. PRESERVATION OF EARNINGS
8.1 GUARANTEE PROVISIONS
(a) Guarantee of employment and assured earnings
Subject to (b)-(e) below:
(i) Employees who have been continuously employed for not less than 4 weeks
shall be guaranteed employment for 38 hours in each pay week.
(ii) In the event of work not being available for the whole or part of the pay week
employees covered by the guarantee will be assured earnings equivalent to
their basic hourly rate for 38 hours. Overtime premiums earned during the pay
week in question shall not form part of the assured earnings.
(b) Conditions of the guarantee
The guarantee provisions are subject to the following conditions:
(i) That employees are capable of, available for and willing to perform
satisfactorily, during the period of the guarantee, the work associated with
their usual occupation or reasonable alternative work where their usual work
is not available; and
(ii) That notice of termination of employment has not been given.
(c) Reduction of the guarantee
The period of the guarantee shall be reduced proportionately:
(i) In the case of part-time employment arranged in accordance with NAECI 7.1(e);
(ii) Where agreed short time is worked as an alternative to redundancy; or
(iii) In the case of annual or public holiday.
(g) Early cessation of work during scheduled and normal working hours
In exceptional circumstances of sustained severe inclement weather the employer
may decide to cease work and send home early those employees who cannot be
deployed to alternative work. The NJC recommends that normally the Employer
should not send employees home until after the mid-shift break. Employees sent
home early are to be paid the appropriate basic/shift rate for the remaining
scheduled hours of the day/shift.
(h) Early cessation on other days
If the circumstances described in NAECI 8.3(g) above arise on a day other than a
scheduled normal working day the provision of that clause will be applicable, the
payment provisions being limited to the agreed defined overtime hours scheduled
for that day up to a maximum of 8 hours. Men sent home, when the employer has
decided that work is not possible during the overtime as arranged, will therefore
receive payment at the basic rate for the balance of the overtime hours scheduled
for that day, subject to the above limitation.
(i) Site emergencies
The payment provisions of NAECI 8.3(a) shall also apply when employees are
cabined up and/or sent home early because of site emergencies e.g. fire, gas escape
or bomb scare.
(j) Trial evacuations
Employees prevented from working as a result of a trial evacuation required by a
client shall receive any applicable incentive bonus payment.
(ii) For days of annual holiday up to the maximum in NAECI Appendix A.5(c).
(iii) For certified sickness and other absence with permission up to the maximum
in NAECI Appendix A.5(c), but limited to a period of no more than 14 days.
(e) Reimbursement of actual expenses
An employer may agree to reimburse actual accommodation expenses against
receipts as an alternative to paying accommodation allowance. All such
accommodation must be considered reasonable by the employer and mutually
acceptable, taking into account the circumstances in the locality.
However, if the employer reimburses accommodation expenses which are higher
than accommodation allowance and it cannot be demonstrated that the
circumstances are exceptional, e.g. an exceptionally high cost area, then the amount
in excess of accommodation allowance must be taxed (notwithstanding that receipts
are available to support the payments).
(f) Penalty for absenteeism
An employee who is absent or unavailable for work during working hours on a
normal working day without good cause or without permission shall forfeit the
accommodation allowance payable for that day. If such absence occurs on either a
Friday or a Monday the accommodation allowance applicable to Saturday and
Sunday shall also be forfeited unless those days are worked.
(g) Employees Sick in Accommodation
Any case of sickness or accident occurring during the course of an employee's
employment, which necessitates an employee entitled to accommodation allowance
remaining in his accommodation, may be the subject of special arrangements for
payment of the allowance for a maximum period of 14 days.
(h) Accommodation Allowance at Periodic Leave
When employees return home for periodic leave (see NAECI 9.4) accommodation
allowance shall be paid for the days on which employees are travelling home from
the site and returning to the site. In respect of the intervening days of holiday the
accommodation retainer shall be paid as in NAECI 9.2(d)(i) and Appendix A.5(b).
For example, if a job closes down on a Friday night for a periodic leave and the
following Monday is a holiday so that work is resumed on Tuesday, accommodation
allowance is payable for both Friday and Tuesday, the 2 travelling days. The retainer
is then payable for Saturday, Sunday and Monday.
If, however, an employee chooses not to travel home but to remain in the
accommodation he/she shall receive full accommodation allowance for the period
but not periodic leave transport expenses nor travelling time payment (NAECI 9.4(b)
and (c) refer).
vouchers, shall be reimbursed at full standard class return rail fares between these
stations. The employer may specify the travel route and an employee using some
other route shall be liable to pay the difference in cost if any.
(c) Travelling time payment
In addition to transport expenses employees covered by this Section shall be
entitled to a payment of travelling time of one hour at the basic rate for the first 30
miles and a half hour for each subsequent 20 miles or part thereof of the journey
one way but the travelling time payment shall apply both at the start and at the
finish of an 'away contract'. Distances for the purpose of this clause are measured
by the fastest route option on the RAC Route Planner as NAECI 9.1(d).
(d) Transfer
An employee who is transferred to another site on which he/she qualifies for
accommodation allowance shall be entitled to transport expenses and travelling
time for the journey from the original site to the new site in accordance with this
Section.
(e) Qualifications for Periodic Leave Payment
Employees are normally expected to return to the site during the course of their
normal shift on the day following periodic leave. The payment of transport
expenses, travelling time and the accommodation retainer shall be conditional on
working up to normal finishing time prior to the periodic leave, the punctual return
of the employee to the site on the next working day after the periodic leave and the
employee's availability for work for the remainder of that day, unless the employee
can produce evidence to the satisfaction of the employer that his/her absence was
due to causes beyond his/her control or the employee is absent or returns late with
the permission of the employer.
(f) Voluntary Termination of Employment
When an employee terminates his/her employment during a contract the employee
shall not be entitled to travelling expenses for the journey to his/her home base.
However, if the employer is satisfied that the termination arises from a genuine
need to return home an application for such expenses shall be given proper
consideration.
(g) Alternative Periodic Leave Arrangements
When an employee is retained to work during recognised periodic leave the
employee shall receive his/her entitlements under NAECI 9.4 at another mutually
convenient time. An employee so retained shall be entitled to the appropriate rates
for the work done plus accommodation allowance for the days of retention only.
Single air fare between 'Airport H' (the airport nearest the employee's
home) and 'Airport S' (the nearest appropriate airport to the site); and
Single rail fare between the main line station nearest to the site and the
main line station nearest to 'Airport S', calculated in accordance with NAECI
9.4(b).
(ii) Travelling time payment, consisting of:
One hour's travelling time at the basic rate for that portion of the journey
covered by air; and
Travelling time between the site and 'Airport S', calculated in accordance
with NAECI 9.4(c).
(b) Periodic weekend leave
When taking periodic weekend leave employees shall be entitled to:
(i) Transport expenses, consisting of:
Return air fare between 'Airport S' and 'Airport H'; and
Return rail fare between the main line station nearest to the site and the
main line station nearest to 'Airport S', calculated in accordance with NAECI
9.4(b).
(ii) Travelling time payment, consisting of:
One hour's travelling time at the basic rate for that portion of the journey
covered by air (one way only); and
Travelling time between the site and 'Airport S' (one way only), calculated
in accordance with NAECI 9.4(c).
The employer shall forward all contributions to Scottish Widows at monthly or,
where agreed, 4-weekly intervals. Scottish Widows shall then recover basic rate
tax in respect of the employee contribution and add this to the employee's fund.
(iii) Part-time employees
Where an individual is employed on a part-time basis in accordance with NAECI
7.1(e), the minimum employee and fixed employer contributions specified in
NAECI Appendix A.7(a) shall both be reduced pro rata.
(iv) Contributions to more than one scheme
Where a member of the ECI Stakeholder Scheme also belongs to another
pension arrangement to which his/her employer is currently contributing, the
employer shall be entitled to set such contributions off against any obligation
to pay the fixed employer contribution in accordance with (b) above.
(v) Industrial action and unauthorised absence
The employer shall continue to make deductions where an employee does not
work properly for all or part of a pay week because of industrial action and/or
absence without due authorisation, provided that sufficient wages are available
for this purpose. However, in such circumstances, the employer shall be
entitled to withhold the whole of the fixed employer contribution relating to
that pay week.
(vi) Termination of employment
The employer's obligation to make deductions and (where applicable) the fixed
employer contribution continues during an employee's notice period (or any
period covered by a payment in lieu of notice), but shall cease on termination
of employment.
Members of the ECI Stakeholder Scheme may be permitted to continue making
payments on their own behalf directly to Scottish Widows during periods of
unemployment or non-qualifying employment. For further information contact
Scottish Widows (see NAECI 11.1(f) below).
(e) Complaints
Employees' pension related complaints should be made through the grievance/
disputes provisions of NAECI 14 where they concern an allegation either that:
The employer has failed to make membership of the ECI Stakeholder
Scheme available to all employees in accordance with NAECI 11.1; or that
The employer has failed to make deductions and, where applicable, payments of
the fixed employer contribution, or to forward contributions to Scottish Widows,
in accordance with NAECI 11.1.
All other complaints (including those relating to Scottish Widows' management of
the scheme or of an individual's fund) must be made through the Scottish Widows
complaints procedure by contacting the Corporate Pensions Administration
Manager via the Stakeholder helpline (see NAECI 11.1(f)).
(f) Further Information
Employees seeking further information about joining the ECI Stakeholder Scheme
should first request a Scottish Widows employee pack from their employer.
Information and assistance for existing and potential scheme members is also
available from Scottish Widows on its Stakeholder helpline Tel: 0845 716 6777, or
by contacting:
Scottish Widows
15 Dalkeith Road
Edinburgh
EH16 5BU
Full details of the rules governing the ECI Stakeholder Scheme are contained in the
latest editions of the 'Engineering Construction Industry Stakeholder Pension
Scheme Regulations' and the 'Rules of the Scottish Widows Stakeholder Pension
Plan', copies of which should be made available to employees by their employer on
request.
rate payable for normal working hours for the week or 2 consecutive weeks in
question.
(c) Employees who do not qualify for statutory paternity pay
Where an employee is due to become a parent or adoptive parent but does not
qualify for statutory paternity leave or pay (e.g. because he/she has not completed
26 weeks' continuous employment by the applicable date), his/her employer should
nevertheless treat with sympathy any request by the employee for up to 5
consecutive days of annual holiday or authorised unpaid leave. The employee is
required to make this request in sufficient time for the employer to be able to put
alternative arrangements in place to minimise any disruption to productive work.
12.9 COLLECTIONS
Employees may wish to make donations to a fund for the dependants of a colleague who
has died. The employer of the deceased person may provide facilities to assist in the
collection and safe keeping of such donations.
compliance. These shall be summarised in an annual report, the findings of which shall
be taken into account by the industry's employers in considering any enhancement of
the value of the benefits referred to in NAECI 12.8.
Stage 3 reference is appropriate for the project or site. Any such agreement
must be made prior to the employment of labour or the coming into effect of
any SPA, or Long Term Repair and Maintenance Agreement and is subject to
NJC approval.
(ii) In all other cases: an NJC Dispute Adjudication Panel (Stage 4).
Note: Separate provisions apply in the event of a failure to agree at Stage 2 in relation
to dismissal appeal cases (see further NAECI 15.8.1).
(iv) Every effort shall be made to reach a unanimous decision. If this proves
impossible then the Panel may reach a Finding supported by a majority of
votes.
(v) In the event of a failure to arrive at a decision the matter shall be referred to
the National Joint Council for consideration at its next meeting.
(vi) On any question which is considered by the Panel to raise issues concerning
the interpretation of the NAECI, or to be of fundamental importance to the
engineering construction industry, the Panel has the right to bring the matter
before the National Joint Council before promulgating its decision.
(vii) Decisions of the Panel will normally be implemented with immediate effect. In
the event that either party has practical difficulties in implementation they
should seek the agreement of the Panel to the time frame in which the decision
will be implemented.
(b) NJC practice directions
The National Joint Council has produced further practice directions on the
submission of a reference to Stage 4 and the conduct of NJC Dispute Adjudication
Panel hearings. See Appendix E.
A key objective for the National Joint Council in preparing these directions was to
ensure that grievances/disputes are resolved or moved up to the next stage as
speedily as possible.
(c) Training
The NJC shall ensure that panel members and trades union/employers association
officials who are required to represent employees/employers at Panel hearings are
competent to perform their respective roles. As part of this process, the NJC shall
develop a systematic and extensive induction/training programme for Panel
members and representatives.
has in place a formal, written disciplinary procedure. The terms of this procedure shall
be consistent with the ACAS Code of Practice on 'Disciplinary and Grievance Procedures'
(April 2009), and NAECI 15.2 to 15.8. In the absence of a proper company procedure,
these Sections shall stand in place of that procedure.
15.3 WARNINGS
Where intervention under NAECI 15.2 has not succeeded in resolving the issue, or in
more serious cases of poor performance, absenteeism/lateness or misconduct (other
than gross misconduct), the subsequent formal disciplinary procedure shall be
consistent with the provisions of NAECI 15.6 and 15.8.
(b) The first consideration will be the need to maintain a balanced and productive
workforce composed of employees whom management considers have the skills
and experience most appropriate to the company's needs.
(c) Selection shall be based on the particular contract where employees included in a
selection pool are currently employed, except where the written offer of
employment, contract of employment and/or statutory statement of employment
particulars issued by the employer either:
(i) Expressly provides that an employee is employed specifically on a transferable
basis operating across a number of contracts in a defined area. In such cases,
that area shall be regarded as the 'contract' for the above purposes; or
(ii) Expressly sets out a specifically defined alternative to selection on a contract
basis (including an unambiguous statement explicitly excluding selection on a
contract basis under either (c) or (c)(i) above).
(d) A particular selection criterion may not be used if, either generally or in the specific
circumstances where its application is being proposed, it contravenes the
requirements of United Kingdom employment, labour relations or discrimination law.
(e) Length of service with the employer may form part of the redundancy selection
process where it is lawful to do so - for example:
(i) Where the short-term nature of employment makes it genuinely impracticable
for an employer to establish an alternative basis for differentiating between
individuals; or
(ii) To differentiate between 2 individuals who are awarded equal scores under an
objective selection matrix operated in accordance with (f) below.
(f) Where an employer is proposing to base selection for redundancy on the
performance of individual employees against a matrix of factors, it should take
reasonable steps to demonstrate during consultation that:
(i) The selection criteria and scoring systems set out in the matrix are objective
and/or verifiable. Examples of such criteria include (but need not be limited to):
Attendance
Timekeeping
Disciplinary record
Job knowledge/skills
Relevant qualifications/training
Assisting/developing/training others
Measurable quality
Health and safety
(ii) Where an individual does not agree with a decision to select him/her for
redundancy, he/she shall have access to a company appeals procedure.
(g) After due consultation, management will prepare a list of the names of the
employees to be made redundant in accordance with the above provisions and will
notify them accordingly. The list will then be made available to the shop stewards.
(h) Individual companies shall have the opportunity of registering redundancy
procedures established in accordance with the above provisions with the NJC.
(i) Further dismissal appeal provisions are set out in NAECI 15.8.
accepted an offer of salaried status in accordance with NAECI 17, except where varied
under the terms of the employer's salaried status scheme in accordance with NAECI 17.5
to 17.8 below.
17.8 GRIEVANCE/DISPUTES
Grievances or disputes involving salaried employees shall be dealt with under:
(a) The company's domestic grievance procedure, where the grievance/dispute relates
to a particular provision of the employer's salaried status scheme developed in
accordance with NAECI 17.
(b) NAECI 14 where the grievance/dispute relates to NAECI terms and conditions.
Where there is genuine doubt or disagreement about whether a particular matter
falls within (a) or (b) above, this issue may be referred to a Stage 2 Site Meeting for
resolution (see further NAECI 14.6(a)).
Any issue that arises shall be dealt with under NAECI 14.
17.9 GUIDANCE
From time to time, the NJC may publish further directions or guidance on the
implementation and operation of employers' salaried status schemes.
Part 2:
Categorised Work
18. CATEGORISATION
18.1 CATEGORISED WORK
The concept of categorisation permits the appropriate application of the NAECI to each
of the following specific work sectors:
(a) Category 1: Major New Construction Projects.
(b) Category 2: Long Term Repair and Maintenance Operations.
(c) Category 3: Major Events.
be earned and paid, subject to the agreed criteria in the IBA, for the second half
of the audit period.
(ii) Where there is an incident of unprocedural action or an unauthorised stoppage
of work in the second half of the monthly audit period, the performance-based
payment for that half of the audit period will be forfeited. Provided there is a
return to normal productive working for the remainder of the audit period, the
performance-based payment for the first half of the audit period may be
earned and paid, subject to the agreed criteria in the IBA.
(iii) Where there is more than one incident of unprocedural action or more than one
unauthorised stoppage of work in the monthly audit period then the whole of
the performance-based payment for the whole audit period will be forfeited.
(iv) Where unprocedural action or unauthorised stoppages occur over two separate
adjacent monthly audit periods, then these would be treated as separate
incidents and the payments for each monthly audit period would be subject to
the conditions above.
Note: 4 times a year the monthly audit period will be 5 weeks long. In these circumstances
the first half of the audit period will end at lunchtime on the Wednesday of the third
week.
20.2 CONSULTATION
The NJC may consult a client and/or the managing/main contractor(s) to discuss a
forthcoming Major New Construction Project or a Major Event, or Long Term Repair and
Maintenance Operations, and with them decide whether the work in question might
benefit from additional employment relations support.
(iii) Inductions
It is good practice to induct employees who are new to a Major New
Construction Project. Clients, where appropriate, and contractors should work
together to provide an induction which gives the necessary information to
allow an employee to operate safely and productively on the project.
Trades unions representatives shall be invited to contribute to the induction
courses, which may also include:
Safe working practices and site safety regulations.
Familiarisation with the NAECI, the local agreement and, in particular, the
procedure to be followed in the event of grievances/disputes (NAECI 14).
The main rules and requirements of any incentive bonus arrangement
(NAECI 19 refers).
The ECI Stakeholder Pension Scheme (NAECI 11.1).
NAECI 8.2(a) defines the wages payable during induction training.
(iv) Independent auditor
In order to ensure harmonious employment relations and full compliance with
NAECI terms and conditions on Major New Construction Projects, NJC approval
under NAECI 20.3 above will normally be conditional on the SPA providing for
the appointment of an independent auditor.
Where a managing/main contractor considers that the circumstances of a
particular Major New Construction Project mean that the appointment of an
independent auditor is uneconomic or otherwise unnecessary, it shall specify
its full reasons and any alternative proposals when submitting the SPA for NJC
approval. In such circumstances the NJC will need to be convinced that there
is merit in approving a SPA which does not include the appointment of an
independent auditor.
A guide to the Independent Audit can be found in Annex D of Appendix D.
(b) Long Term Repair and Maintenance Operations
(i) Existing Repair and Maintenance Agreements
Repair and Maintenance Agreements approved previously by the NJC, shall be
given the opportunity to continue, without amendment, while being able to
develop over time in line with the principles embodied within the NAECI.
(ii) Minor projects and events
In order to improve the prospects for long-term continuity of employment for
the employer and its employees and to help eliminate peaks and troughs in
workload, new build, refurbishment, minor modification projects and minor
events may be included in the scope of Long Term Repair and Maintenance
Agreements.
(iii) Major New Construction Projects
Where a significant stand alone new build project is proposed, the client may
ring fence it for the period of construction and seek to regulate it separately
through the NJC as a Major New Construction Project. Upon completion the
terms and conditions of the Long Term Repair and Maintenance Agreement will
apply.
(iv) Limited dispensation for non-UK terms and conditions on short-term contracts
Where:
1. A Long Term Repair and Maintenance Agreement is in place; and
2. It is proposed to engage one or more non-UK contractor(s) to perform
contract(s) that would otherwise fall within the scope of that Agreement; and
3. The non-UK contractor(s) propose to post employees from overseas to the
UK on their normal (non-UK) terms and conditions of employment; and
4. The contract(s) in question is/are of only short-term duration; and
5. The Long Term Repair and Maintenance Agreement does not already include
a specific exemption covering circumstances of this sort. An application may
be made in advance to the NJC for a dispensation from the application of
NAECI and Long Term Repair and Maintenance Agreement terms and
conditions to the employer(s), employees and contract(s) concerned, without
otherwise affecting the ongoing status, application or validity of the NAECI
or the Long Term Repair and Maintenance Agreement on the site.
(c) Major Events where a Long Term Repair and Maintenance Agreement is in place
Where a Long Term Repair and Maintenance Agreement under the NAECI exists on
an operating plant, the terms and conditions for a Major Event may either be
incorporated within that Agreement or regulated separately under a Major Event
Agreement. The fullest prior consultation will take place between signatory
employer and trades union representatives.
(d) Major Events on other sites
In order to help achieve stable employment relations on those operating plants
where a Long Term Repair and Maintenance Agreement does not exist, employers
are encouraged to support consultation about and negotiation of structured
arrangements under the NAECI for Major Events.
Part 3:
Appendix A
SCHEDULE OF RATES AND ALLOWANCES
A.1 Conditions of the 2013 2015 settlement 68
National Grade Grade Grade Grade Grade Grade Grade Grade Grade
Guaranteed Rates 1 1 2 2 3 3 4 5 6
for graded Adult 16/17 Adult 16/17 Adult 16/17
employees years years years
Basic rate/day work 8.65 6.71 9.92 7.63 11.24 8.65 13.18 13.83 14.47
Night shift 10.96 8.49 12.56 9.68 14.23 10.96 16.71 17.52 18.33
Afternoon shift 10.21 7.92 11.73 9.01 13.24 10.21 15.56 16.31 17.08
3 shifts:
- 5 days 10.61 8.21 12.14 9.34 13.76 10.61 16.15 16.91 17.72
- 7 days 10.73 8.30 12.32 9.48 13.93 10.73 16.37 17.14 17.94
Rolling shifts:
- days 10.39 8.04 11.92 9.17 13.49 10.39 15.83 16.58 17.37
- nights 11.40 8.86 13.12 10.09 14.82 11.40 17.40 18.26 19.12
Overtime
- Rate A 12.12 9.37 13.89 10.69 15.72 12.12 18.45 19.35 20.25
- Rate B 15.59 12.07 17.87 13.74 20.22 15.59 23.73 24.87 26.05
National Grade Grade Grade Grade Grade Grade Grade Grade Grade
Guaranteed Rates 1 1 2 2 3 3 4 5 6
for graded Adult 16/17 Adult 16/17 Adult 16/17
employees years years years
Basic rate/day work 8.85 6.86 10.15 7.81 11.50 8.85 13.48 14.15 14.80
Night shift 11.21 8.69 12.85 9.90 14.56 11.21 17.09 17.92 18.75
Afternoon shift 10.44 8.10 12.00 9.22 13.54 10.44 15.92 16.69 17.47
3 shifts:
- 5 days 10.85 8.40 12.42 9.55 14.08 10.85 16.52 17.30 18.13
- 7 days 10.98 8.49 12.60 9.70 14.25 10.98 16.75 17.53 18.35
Rolling shifts:
- days 10.63 8.22 12.19 9.38 13.80 10.63 16.19 16.96 17.77
- nights 11.66 9.06 13.42 10.32 15.16 11.66 17.80 18.68 19.56
Overtime:
- Rate A 12.40 9.59 14.21 10.94 16.08 12.40 18.87 19.80 20.72
- Rate B 15.95 12.35 18.28 14.06 20.69 15.95 24.28 25.44 26.65
National Grade Grade Grade Grade Grade Grade Grade Grade Grade
Guaranteed Rates 1 1 2 2 3 3 4 5 6
for graded Adult 16/17 Adult 16/17 Adult 16/17
employees years years years
Basic rate/day work 9.13 7.08 10.48 8.06 11.87 9.13 13.91 14.60 15.28
Night shift 11.57 8.97 13.26 10.22 15.03 11.57 17.64 18.50 19.35
Afternoon shift 10.78 8.36 12.39 9.52 13.97 10.78 16.43 17.23 18.03
3 shifts:
- 5 days 11.20 8.67 12.82 9.86 14.53 11.20 17.05 17.86 18.71
- 7 days 11.33 8.76 13.00 10.01 14.71 11.33 17.29 18.09 18.94
Rolling shifts:
- days 10.97 8.48 12.58 9.68 14.24 10.97 16.71 17.50 18.34
- nights 12.03 9.35 13.85 10.65 15.65 12.03 18.37 19.28 20.19
Overtime:
- Rate A 12.80 9.90 14.67 11.29 16.60 12.80 19.48 20.44 21.39
- Rate B 16.46 12.75 18.87 14.51 21.35 16.46 25.06 26.26 27.51
National
Guaranteed Rates for 1st 2nd 3rd 4th
directly employed Year Year Year Year
apprentices
(c) Incentive bonus arrangements (National Guaranteed Rates only) (NAECI 6.3)
(i) The following provisions must be read in conjunction with NAECI 6.3.
(ii) Subject to (iii)-(vi) below, the amounts payable under any incentive bonus
arrangement established in accordance with NAECI 6.3 are to be determined locally.
(iii) The maximum amount payable under such an arrangement shall not exceed
2.40 per hour worked (and pro rata for all other employees as set out in (iv)-
(vi) below).
(iv) Grades 4, 5 & 6: 100% of locally determined payment
Grade 3 (Adult): 80% of Grades 4, 5 and 6
Grade 2 (Adult): 70% of Grades 4, 5 and 6
Grade 1 (Adult): 60% of Grades 4, 5 and 6
(v) 16 and 17 year olds are to be paid 75% of the incentive bonus payment
applicable to their grade.
(vi) Non-ECITB apprentices employed under the NAECI may be paid in the 3rd year
of apprenticeship up to 25% of the incentive bonus payment applicable to
Grade 4 (Craft) employees and in the 4th year up to 50%.
From Monday 5 January 2015:
Apprentices employed on NAECI work shall be paid in the 3rd Year of
apprenticeship up to 25% of the incentive bonus payment applicable to Grade
4 Craft employees and in the 4th Year up to 50%.
CATEGORY B
Materials to be welded Carbon Steel
CATEGORY C
Materials to be welded Either ferritic alloy or austenitic steel (but not both)
CATEGORY D
Materials to be welded Both ferritic alloy and austenitic steel.
CATEGORY E
Materials to be welded Any material in category B, C or D
From
07/01/13
From
07/01/13
1. DEATH BENEFIT
Death by any cause 30,000
2. ACCIDENT LUMP SUM BENEFITS
2.1 Accidental death 40,000
Fatal Accident due to occupational or site accident (including
accidents which occur whilst an operative is undertaking daily
travel between home/lodgings and site and return)
Note: Death benefit will be payable in addition to any Fatal Accident
benefit that may become payable.
From
07/01/13
4. DISABLEMENT
Due to an occupational or site accident
(a) Loss of sight - 1 eye 10,000
- 2 eyes 25,000
Total loss by amputation or permanent
loss of use of:
(b) i) 1 limb (hand, arm, foot or leg) 10,000
ii) 2 or more limbs 25,000
(c) Big toe 1,000
(d) Any other toe 500
Right Hand Left Hand
(e) 4 fingers or a thumb 2,000 2,000
(f) Index finger 1,250 950
(g) Any other finger 750 450
Note: Payment in respect of a left handed
person will be reversed where the
claim is under items (f) or (g).
From 07/01/13
From 01/02/13
Weekly rate of accrual 5.31 6.21 7.09 8.44 8.65 8.65
(up to 103 weeks)
(ii) For weeks of qualifying employment when the individual is aged 41 or older:
From 01/02/13
Weekly rate of accrual 7.97 9.32 10.64 12.67 12.98 12.98
(up to 103 weeks)
Note: These rates (c) may be subject to increase following changes to statutory payment
values. The NJC website contains up-to-date information about current values of
contractual severance and A.7(b)5 weekly sickness and accident benefit payments.
Categorised Grade Grade Grade Grade Grade Grade Grade Grade Grade
Work Rates 1 1 2 2 3 3 4 5 6
for graded Adult 16/17 Adult 16/17 Adult 16/17
employees years years years
Basic rate/day work 9.50 7.34 10.90 8.41 12.36 9.50 14.61 15.25 15.89
Night shift 12.03 9.28 13.83 10.63 15.66 12.03 18.48 19.29 20.13
Afternoon shift 11.20 8.66 12.89 9.91 14.61 11.20 17.25 17.98 18.76
3 shifts:
- 5 days 11.63 9.00 13.36 10.27 15.15 11.63 17.89 18.65 19.45
- 7 days 11.78 9.11 13.57 10.43 15.32 11.78 18.12 18.89 19.69
Rolling shifts:
- days 11.41 8.80 13.12 10.08 14.83 11.41 17.53 18.30 19.05
- nights 12.54 9.69 14.44 11.09 16.33 12.54 19.28 20.13 20.98
Overtime
- Rate A 13.30 10.27 15.29 11.76 17.34 13.30 20.45 21.34 22.25
- Rate B 17.09 13.20 19.65 15.12 22.29 17.09 26.29 27.43 28.61
Categorised Grade Grade Grade Grade Grade Grade Grade Grade Grade
Work Rates 1 1 2 2 3 3 4 5 6
for graded Adult 16/17 Adult 16/17 Adult 16/17
employees years years years
Basic rate/day work 9.72 7.51 11.15 8.60 12.64 9.72 14.95 15.60 16.26
Night shift 12.31 9.49 14.15 10.87 16.02 12.31 18.91 19.73 20.59
Afternoon shift 11.46 8.86 13.19 10.14 14.95 11.46 17.65 18.39 19.19
3 shifts:
- 5 days 11.90 9.21 13.67 10.51 15.50 11.90 18.30 19.08 19.90
- 7 days 12.05 9.32 13.88 10.67 15.67 12.05 18.54 19.32 20.14
Rolling shifts:
- days 11.67 9.00 13.42 10.31 15.17 11.67 17.93 18.72 19.49
- nights 12.83 9.91 14.77 11.35 16.71 12.83 19.72 20.59 21.46
Overtime:
- Rate A 13.61 10.51 15.64 12.03 17.74 13.61 20.92 21.83 22.76
- Rate B 17.48 13.50 20.10 15.47 22.80 17.48 26.89 28.06 29.27
Categorised Grade Grade Grade Grade Grade Grade Grade Grade Grade
Work Rates 1 1 2 2 3 3 4 5 6
for graded Adult 16/17 Adult 16/17 Adult 16/17
employees years years years
Basic rate/day work 10.03 7.75 11.51 8.88 13.05 10.03 15.43 16.10 16.78
Night shift 12.71 9.79 14.60 11.22 16.53 12.71 19.52 20.36 21.25
Afternoon shift 11.83 9.14 13.61 10.47 15.43 11.83 18.22 18.98 19.81
3 shifts:
- 5 days 12.28 9.51 14.11 10.85 16.00 12.28 18.89 19.69 20.54
- 7 days 12.44 9.62 14.33 11.01 16.17 12.44 19.14 19.94 20.79
Rolling shifts:
- days 12.04 9.29 13.85 10.64 15.66 12.04 18.51 19.32 20.12
- nights 13.24 10.23 15.24 11.71 17.25 13.24 20.35 21.25 22.15
Overtime:
- Rate A 14.05 10.85 16.14 12.42 18.31 14.05 21.59 22.53 23.49
- Rate B 18.04 13.93 20.75 15.97 23.53 18.04 27.75 28.96 30.21
Categorised
Work Rates for 1st 2nd 3rd 4th
directly employed Year Year Year Year
apprentices
3 shifts:
- 5 days 7.34 9.56 12.25 14.38
- 7 days 7.45 9.65 12.39 14.87
Rolling shifts:
- days 7.18 9.34 11.99 14.42
- nights 7.92 10.28 13.19 15.86
Overtime:
- Rate A 8.41 10.89 13.99 16.81
- Rate B 10.81 14.03 17.98 21.62
Categorised
Work Rates for 1st 2nd 3rd 4th
directly employed Year Year Year Year
apprentices
3 shifts:
- 5 days 7.51 9.78 12.53 14.71
- 7 days 7.62 9.87 12.67 15.21
Rolling shifts:
- days 7.35 9.55 12.27 14.75
- nights 8.10 10.52 13.49 16.22
Overtime:
- Rate A 8.60 11.14 14.31 17.20
- Rate B 11.06 14.35 18.39 22.12
Categorised
Work Rates for 1st 2nd 3rd 4th
directly employed Year Year Year Year
apprentices
3 shifts:
- 5 days 7.75 10.09 12.93 15.18
- 7 days 7.86 10.19 13.08 15.70
Rolling shifts:
- days 7.59 9.86 12.66 15.22
- nights 8.36 10.86 13.92 16.74
Overtime:
- Rate A 8.88 11.50 14.77 17.75
- Rate B 11.42 14.81 18.98 22.83
Cats 1-3
Basic hourly rates 10.90 12.36 14.61 15.25 15.89
Cats 1-3
Basic hourly rates 11.15 12.64 14.95 15.60 16.26
Cats 1-3
Basic hourly rates 11.51 13.05 15.43 16.10 16.78
NGR
basic hourly rates 9.92 11.24 13.18 13.83 14.47
NGR
basic hourly rates 10.15 11.50 13.48 14.15 14.80
NGR
basic hourly rates 10.48 11.87 13.91 14.60 15.28
Part 3:
Appendix B
THE NATIONAL JOINT COUNCIL FOR THE ENGINEERING
CONSTRUCTION INDUSTRY
B.1 Establishment and title 90
B.2 Constitution 90
B.3 Objectives 90
B.5 Scope 91
B.6 Jurisdiction 91
B.7 Categorisation 91
B.9 Subcommittees 92
B.10 Meetings 92
B.12 Records 92
B.13 Information 93
B.14 Finance 93
B.2 CONSTITUTION
The Council consists of an employers' side containing representatives of the employers'
organisations signatory to the constituent Agreement, a trades union side containing
representatives of the signatory trades unions and an Executive Chairman appointed by
the 2 sides acting jointly. There shall be an equal number of nominated members on
each side, the actual numbers being determined or varied by agreement of the 2 sides.
B.3 OBJECTIVES
The Council aims to establish the NAECI as the dynamic 'Agreement of Choice' of the
industry that will enable the parties to initiate and maintain a fully inclusive
consultative process which will ensure continuous improvement being delivered to all
the industry stakeholders.
Its principal objectives are to determine and regulate terms and conditions of
employment on sites in the engineering construction industry, based on the principle of
direct employment, and to provide a forum for the consideration of all matters of
common interest to employers and employees in the industry and ensure stable
industrial relations.
(f) To represent and further the joint interests of employers and employees in the
industry in dealings with the Government, clients, employment businesses and
other bodies concerned with the wellbeing of the industry.
(g) To provide machinery for effective consultation and for dealing with questions
arising and for the avoidance or prompt settlement of disputes.
(h) To provide a framework of standard nationally agreed terms and conditions of
employment, with provision for the local determination of a range of items, subject
to the rules and procedures or the NAECI.
B.5 SCOPE
Definition
The following work carried out on site by contractors in membership of the signatory
employer associations shall be included within scope of the NAECI:
Engineering construction projects
Structural steel erection, mechanical, electrical, instrumentation and insulation
engineering construction project work (and scaffolding in support of such work) on
onshore engineering construction facilities, and expert dismantling of such
facilities, anywhere in the United Kingdom mainland, or otherwise as agreed by the
NJC.
Repair and Maintenance
Repair, maintenance and minor modification work on onshore engineering
construction facilities, except where the client decides that such work should not
be included within scope.
Nuclear decommissioning
The signatory parties agree to work together to identify appropriate nuclear
decommissioning activities to be brought within scope of the NAECI.
Specific Scope Provisions
Detailed provisions covering specific in-scope and out-of-scope activities on a particular
project, site or event (for example, cladding) are to be included in any local agreement
made under NAECI 20.3, subject to NJC approval and compatibility with 'Definition'
above.
B.6 JURISDICTION
Decisions of the Council are made by joint agreement of the 2 sides of the Council. The
Council is the final authority on all questions concerning the attainment of its principal
objective. Its specific role in relation to negotiation, disputes and grievances, discipline
and other procedural matters is defined in the Council's agreements on these subjects.
B.7 CATEGORISATION
The concept of categorisation permits the appropriate application of the NAECI to each
of the following specific work sectors:
(a) Category 1: Major New Construction Projects
(b) Category 2: Long Term Repair and Maintenance Operations
(c) Category 3: Major Events
The Finance & General Purposes Committee, acting on behalf of the Council, shall have
the ultimate authority to determine the appropriate category of work after prior
consultation between the parties and, where appropriate, with the understanding and
support of the Client.
B.9 SUBCOMMITTEES
The Council or its Finance and General Purposes Committee may establish such
subcommittees, joint working parties or other bodies as they consider necessary.
Membership, which need not be limited to members of the Council, shall be determined
by the Council or its Finance and General Purposes Committee.
B.10 MEETINGS
(a) Frequency
There shall be 3 ordinary meetings of the Council each year and 3 ordinary
meetings of the Finance & General Purposes Committee. The dates shall be
nominated annually in advance. At least 21 days' notice of any ordinary meeting
shall be given and the business of the meeting shall be stated in the Agenda but the
period of notice may be reduced by joint agreement.
(b) Special meetings
Special meetings may be called at the discretion of the Executive Chairman or at the
request of either or both sides. At least 14 days' notice of such meetings shall be
given and the business of the meeting shall be stated in the notice.
(c) Co-opted persons
The Council may co-opt persons of special knowledge, not being members of the
Council, to attend meetings of the Council for the purpose of assisting the Council
with such advice or information as the Council may require.
(d) Quorum
Since matters are determined by the joint agreement of the 2 sides of the Council
there is no requirement for regulations regarding a quorum, but the Executive
Chairman has an obligation to ensure that both sides are adequately represented.
(e) Substitutes
Members may not elect substitutes to attend NJC meetings on their behalf.
B.12 RECORDS
A record of all meetings of the Council shall be prepared and shall form part of the
Agenda of the next meeting of the Council.
B.13 INFORMATION
The Council and Finance and General Purposes Committee will determine the
arrangements for the distribution of their decisions and for publicity concerning their
activities.
B.14 FINANCE
(a) Costs and expenses
The costs of establishing and maintaining the Council are guaranteed by the
employers' side but each side shall be responsible for its own expenses in attending
Council and Finance and General Purposes Committee meetings.
(b) Revenue
Revenues accruing for such revenue-producing activities which the Council may
decide to institute, may be applied to meeting the costs of the Council.
Part 3:
Appendix C
TRADES UNION MATTERS
C.1 Trades union membership 95
C.2 NECC accredited senior stewards 95
C.3 Accredited shop stewards 96
C.4 Facilities for shop stewards 97
C.5 National stewards' forum 97
C.6 Unpaid time off for trades union members 97
C.7 Meetings of trades union members 97
C.8 Facilities for report back, etc. 98
C.9 Inter-union matters 98
(i) The local full time officers of signatory trades unions inform the employer of
the nature of the business for which the time off is required, the intended
location and the expected period of absence.
(ii) Arrangements should be such as to have full regard to the need to minimise
any detrimental effect on productivity.
(iii) Such employees as are required for safety reasons shall remain at work.
(iv) Meetings shall not exceed the authorised duration.
Part 3:
Appendix D
EMPLOYMENT RELATIONS ARRANGEMENTS ON MAJOR
PROJECTS AND R&M SITES
D.1 Additional employment relations support 100
D.2 Notification form 100
D.3 Major New Construction Projects 100
D.4 Long Term Repair and Maintenance Operations 103
D.5 Major Events 105
ANNEXES
A. Notification of work form (NAECI 20.1) 106
B. Model SPA (NAECI 20.3) 107
C. Model constitution of a PJC (NAECI Appx D.3(e)) 109
D. Guide to the independent audit (NAECI 20.4(a)(iv)) 111
E. Project/site training plan (NAECI Appx D.3(j) & Appx D.4(e)) 114
approval. The PJC will operate and uphold the NAECI, the SPA and their rules
and procedures. A model constitution for a PJC is set out in Annex C to this
Appendix.
(ii) Cancellation & Postponement
The following PJC/Forum action is to be taken in the circumstances of a
stoppage of work or other industrial action that results in, or may result in, a
suspension of normal working on or around the date of the scheduled PJC or
Forum meeting.
The most common situations likely to arise are:-
1. A stoppage of work or other industrial action that prohibits normal working on the
day scheduled for the PJC/Forum.
2. A stoppage of work or other industrial action that prohibits normal working in the
day(s) immediately preceding the day scheduled for the PJC/Forum.
3. During a period of difficult industrial relations where either party anticipate that
normal working may not be possible on the day scheduled for the PJC/Forum.
4. For some other reason that either Party may not wish the PJC/Forum to proceed as
planned.
The resolution of any differences shall be achieved through the efforts made and
decisions jointly agreed by the two sides. The role of the Joint Chairmen is to attempt
to overcome any obstacles in order that the meeting can go ahead as planned. The NJC
ROM may assist and guide the local parties to attain this goal.
Failing that, the PJC/Local Forum can only be cancelled or postponed by mutual
agreement.
Where that is not possible then in finality it is open to either Party to notify the other
that they will not be attending.
(f) Working patterns
In accordance with NAECI 7.1(f) the PJC may develop and agree new working
patterns and/or arrangements for shift working, which will be submitted to the NJC
for review and the determination of any premium payments.
(g) Welfare arrangements
In order to provide an efficient working environment and encourage improvements
in industry productive performance, the PJC will ensure that appropriate welfare
arrangements and services exist prior to the recruitment of manpower on the
project.
(h) Induction
Clients, where appropriate, and contractors shall work together to provide an
induction. Trades Union representatives shall be invited to contribute to induction
courses.
(i) ACE
The PJC will monitor the implementation of ACE and fully assist with its promotion
to employers, trades unions and clients on the project (see further NAECI 5.4.5).
(j) Training plan
Local parties are referred to the NAECI training provisions, reproduced in Annex E
to this Appendix.
(k) Communications
In order to provide greater and improved information to the management,
supervision and workforce of Major New Construction Projects, the PJC will
establish and maintain appropriate communications.
Regular reports of the progress of all Major New Construction Projects will be
submitted to the NJC. The NJC may decide to investigate any individual or project-
wide performance-based incentive bonus arrangement(s) to confirm that the
scheme(s) and payment levels conform with the spirit and intent of NAECI 19.
(l) Role and function of shop stewards
In order to develop best practice and good working relationships and to enable shop
stewards to understand their duties under the NAECI, training in the NAECI rules
will take place after accreditation and as early as possible in the life of the project.
Employers also recognise the need to support the uptake of trades unions/TUC
approved employment relations training courses for shop stewards and the benefit
to the industry from a programme of trades union training.
(m) Independent auditor
On all Major New Construction Projects where there is a monthly audit of the
performance and pay levels of all contractors, this may be carried out by a qualified
independent auditor, or other body appointed by the client or managing contractor,
approved by the NJC and acting on behalf of the client/managing contractor and the
PJC (see also NAECI 20.4(a)(iv)). The auditor will carry out periodic checks to ensure
that all payments are made in accordance with the NAECI and will report audit
results to the client, the NJC and the PJC.
Where a performance-based incentive bonus arrangement is in operation, the
auditor may provide impartial measurement information. The PJC will take all
necessary action on the report to ensure compliance with the NAECI.
A detailed guide to the independent audit is set out in Annex D to this Appendix.
(n) Accident records
On all Major New Construction Projects accident records of individual contractors
are to be reported monthly to the auditor (or, in the absence of an auditor, to the
person nominated by the client or managing contractor) on the prescribed NJC
Monthly Accident Report form which may be found on the NJC website
(www.njceci.org.uk).
The auditor (or other nominated person) is required to collate this information and
render a consolidated monthly return for the Major New Construction Project as a
whole to the PJC and the NJC.
(o) Termination of additional employment relations support
(i) On completion
As major construction work on a Major New Construction Project registered
under NAECI 20 nears completion, the PJC will discuss the timing of
termination of additional employment relations support, taking particular
account of the original reasons for such support, the future programme of the
project and commissioning requirements. A recommendation will then be
made to the NJC which will consult the client before approving termination of
additional employment relations support.
ANNEX A
NOTIFICATION OF WORK (NAECI 20.1)
NAECI signatory employers and trades unions are required to report impending projects
and/or contracts regardless of size, duration or location as early as possible to the
recipients indicated below.
Note: This form is also available in editable electronic format from the NJC website
(www.njceci.org.uk).
Name of Project:
Name of Client:
Address:
Tel:
Fax:
Email:
Planned Start:
Estimated Duration:
Contact Name:
Address:
Tel:
Fax:
Email:
ANNEX B
MODEL SUPPLEMENTARY PROJECT AGREEMENT (NAECI 20.3)
1. TITLE
The title is to include the name of the project covered and the name of the client for
whom the project is to be constructed. It is to indicate that the SPA is supplementary to
the NAECI and subject to the authority of the NJC.
2. SIGNATORIES
This section is to list the signatory contractors and the signatory trades unions and their
sections.
3. SCOPE
This section will define the geographical area of the Major New Construction Project in
which work in-scope of NAECI is to be carried out. It will define any specific exclusions
from the scope or variations from the standard NAECI scope.
4. DURATION
This section shall cover the intended duration of the work in-scope to the SPA and the
notice required for termination or revision of the SPA.
6. PROCEDURAL ARRANGEMENTS
This section shall specify the precise arrangements for operating the NAECI Procedures
on the project (NAECI 13-15).
ANNEX C
MODEL CONSTITUTION OF A PROJECT JOINT COUNCIL (Appendix D3(e))
1. ESTABLISHMENT AND TITLE
This Project Joint Council (PJC) has been established by and under the authority of the
National Joint Council for the Engineering Construction Industry (NJC) with the
participation of the (named) principal contractors and signatory trades unions having
involvement in the (named) project. Its title is the (named) Project Joint Council.
4. MEMBERSHIP
PJC Membership may vary to reflect the needs and circumstances of individual projects,
subject to agreement between the parties. The following representation of the parties is
offered as guidance.
(i) The employers' side of the PJC shall comprise representatives of the signatory
employers association(s), the principal contractors and other employers of labour
on the project who may or may not be site-based. The employers have the right to
appoint a number of such representatives equal to the total entitlement of the
trades union side.
(ii) The trades union side of the PJC shall comprise one local full time officer from each
of the signatory trades unions and their sections and accredited shop stewards from
signatory trades unions up to a maximum of 5 who shall be trades union members
employed on the project.
(iii) To reflect changes in the contractors working on the project and in the composition
of the workforce, membership of the PJC may be changed in the course of the
project in order to maintain appropriate representation.
(iv) An appropriate quorum of the PJC shall be established consisting of not less than 3
members from each side with not less than one local full time officer of a signatory
trades union.
5. OFFICERS
Each side of the PJC shall appoint a Chairman. The arrangements for the Chairmanship
of joint meetings shall be set out in the SPA. In addition the NJC shall nominate a
Regional Operations Manager for the project.
6. MEETINGS
Subject to the availability of adequate facilities, the PJC may meet on site, at intervals
determined by the PJC.
7. SUB-COMMITTEES
The PJC may establish the following sub-committees to assist in the discharge of its
responsibilities. (Specify sub-committees, their composition and terms of reference). All
sub-committees shall report to the PJC.
9. CLIENT
Exceptionally, the client may be invited to attend a specific meeting of the PJC where
both sides of the PJC agree that such attendance is necessary to the effective
performance of the PJCs functions and duties with respect to a particular matter.
ANNEX D
GUIDE TO THE INDEPENDENT AUDIT (NAECI 20.4(a)(iv))
1. INTRODUCTION
This guide has been prepared to assist in the performance of the audit service available
under NAECI 20.4(a)(iv) on Category 1 projects receiving additional employment
relations support.
2. NAECI
The NAECI was concluded between the trades unions and the employer representatives
on 28 November 2012. It retains, and builds upon, the achievements of NAECI 1981
2012.
The NAECI is more than a convenient handbook of terms and conditions of employment.
It aims to remove exploitable differences and provides the structures and procedures
through which immediate problems can jointly be resolved, longer-term goals set and
reviewed and future action agreed.
3. AUDIT
On all Major New Construction Projects where there is a monthly audit of the
performance and pay levels of all employers, this will be carried out by a qualified
independent auditor, or other body appointed by the client or managing contractor,
approved by the NJC and acting on behalf of the client/managing contractor and the PJC.
The PJC will take all necessary action on the report to ensure compliance with the NAECI.
ANNEX E
PROJECT/SITE TRAINING PLAN (Appendix D.3(j) & D.4(e))
The NJC is committed to the expansion of youth and adult skill training to VQ standards.
This commitment is aimed at increasing the available pool of skilled labour, improving
the Industry's efficiency and providing an attractive career path for new entrants. In
pursuance of these aims the fullest use will be made of all appropriate schemes and
sources of funding that may from time to time become available. The NAECI places a
clear obligation on employers in the industry to facilitate the provision of training and
on employees to cooperate by participating in such training whenever it is made
available. The NJC approves in particular ECITB Technical Training, the ECITB
Apprenticeship Scheme and the NAECI IR course.
It is recommended that consideration should be given to the establishment of a training
plan covering the lifetime of the project/site incorporating the following principles:
The programme for induction training, specific to the project/site.
Project/site implementation of the ACE Initiative.
The project/site policy in respect of safety training and the monitoring of the expiry
dates of the relevant category of safety certificates and their renewal.
The project/site policy in respect of the NAECI leadership skills workshop.
Provision for the training of first aid representatives, where required.
Provision for the training of a site-based emergency rescue squad, where required.
Provision for the employers to be encouraged to recruit and provide on-site
experience for apprentices.
Provision for employers to be encouraged to recruit both new and existing ECITB
Technical trainees.
Provision for the ECITB to assign one of its Account Managers (ECITB AM) to the
Project/Site.
Provision for the ECITB AM to attend meetings for the purpose of discussing training
and competence assurance matters.
Provision for promotional material on ACE, ECITB apprenticeships, ECITB Technical
Training and other training courses and programmes (including CISRS) to be made
available for distribution on site and during induction sessions.
Provision for the ECITB AM to visit in-scope contractors with a view to promoting
ECITB training programmes and the ACE Initiative on the project/site.
Provision for the ECITB AM, in consultation with the contractors, to endeavour to
maintain continuity of training of both apprentices and ECITB Technical trainees.
Provision for the auditor, when appointed to Major New Construction Projects, to
identify within the audit report the status of all apprentices and trainees on site.
Part 3:
Appendix E
NJC DISPUTE ADJUDICATION PANELS ('STAGE 4'):
PRACTICE DIRECTIONS
E.1 Application to Dispute Adjudication Panel (Stage 4) (NAECI 14.8) 116
E.2 Response 116
E.3 Circulation of full case papers 117
E.4 Hearing date and venue (NAECI 14.8(a)((ii)) 117
E.5 Urgent cases 117
E.6 Conduct of hearing 118
E.7 Panel's decision (NAECI 14.8(a)(iii)-(vii)) 118
E.8 Training for panel members and representatives (NAECI 14.8 (c)) 119
ANNEX
A. Order of business at hearing 119
E.2 RESPONSE
(a) The other party/ parties to the dispute will be expected to submit a written
response to the Application in advance of the Panel hearing, for example where:
The Application raises matters not canvassed previously;
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NAECI 2013 2015
(f) Decisions of the NJC Dispute Adjudication Panel will normally be implemented with
immediate effect. In the event that either party has practical difficulties in
implementation they should seek the agreement of the Panel to the time frame in
which the decision will be implemented.
(g) The secretary to the NJC Dispute Adjudication Panel will be responsible for the
typing and circulation of the Panel's decision and the provision of a full summary
of the hearing to the NJC office.
ANNEX A
ORDER OF BUSINESS AT PANEL HEARING
1. Panel meets in private:
- elects chairman
- considers written evidence.
- agrees conduct of hearing.
2. Panel invites applicant's representatives and respondent's representatives into
room.
3. Chairman
- introduces Panel.
- explains how the hearing will be conducted.
- invites both parties involved to introduce themselves.
4. Applicant's representative presents case.
5. Panel questions* applicant's representative.
6. Respondent's representative questions* applicant's representative.
7. Respondent's representative presents case.
8. Panel questions* respondent's representative.
9. Applicant's representative questions* respondent's representative.
10. Applicant's representative sums up.
11. Respondent's representative sums up.
12. Panel privately considers its decision, which is based on its assessment of all
relevant circumstances, and addresses the question of the applicant's travel
expenses.
13. Panel gives its formal decision to both parties.
14. Panel issues a written communiqu.
Part 3:
Appendix F
NJC DISMISSAL ARBITRATION PANELS: PRACTICE DIRECTIONS
F.1 Application to Dismissal Arbitration Panel (NAECI 15.8.2(a)) 121
F.2 Employers Response 122
F.3 Circulation of full case papers 122
F.4 Facilitation 122
F.5 Hearing date and venue (NAECI 15.8.2(b)(ii)) 122
F.6 Urgent cases 123
F.7 Conduct of hearing 123
F.8 Panel's decision (NAECI 15.8.2(b)(iii)-(v)) 123
F.9 Appointment of panel members etc. 124
F.10 Training for panel members and representatives (NAECI 15.8.2(d)) 125
F.11 NJC monitoring and review (NAECI 14.8(c)) 125
ANNEXES
A. Disciplinary dismissals checklist 125
B. Redundancy dismissals checklist 126
C. Order of business at hearing 127
F.4 FACILITATION
After the submission of the Application to the NJC, the parties shall continue to explore
any viable basis for a reasonable settlement. Where both sides agree it is appropriate,
they may invite the NJC ROM to provide facilitation.
ANNEX A
DISCIPLINARY DISMISSALS CHECKLIST (NAECI 15.8.1(a))
In appeals brought under NAECI 15.8.1(a) ('Disciplinary dismissals (excluding the
probationary period)'), the questions for the NJC Dismissal Arbitration Panel to consider
will normally include (but need not be limited to) the following:
1. Was the employer's reason, or principal reason, for dismissing the employee,
breach(es) by the employee of applicable rules/standards of conduct, competence
and/or performance?
2. Did the employer undertake a proper investigation or appraisal of the employee's
conduct, competence and/or performance?
3. Did the employer have reasonable grounds to believe that the employee had
demonstrated an unsatisfactory standard of conduct, competence and/or
performance?
4. Did the employer:
(a) Put these conduct/competence/performance issues to the employee;
(b) Offer the employee a chance to respond; and
(c) Where applicable1, give the employee a reasonable opportunity to improve?
5. Did the employer comply with other applicable procedural principles set out in:
(a) The National Agreement (NAECI 15);
(b) The employer's own domestic disciplinary procedure; and
(c) The ACAS Code of Practice?
6. Taking all relevant circumstances into account, was the employer's decision to
dismiss the employee:
(a) Consistent with the employer's treatment of any other comparable cases cited
by the employee or his/her representative at an earlier appeal stage; and
(b) Within the 'band of reasonable responses' open to the employer?2
7. Were any failings under 1-6 above rectified at an earlier appeal stage?
1. i.e. excluding cases of gross misconduct or incompetence.
'(a) A tribunal must consider the reasonableness of the employer's conduct, not simply whether they (the
members of the tribunal) consider the dismissal to be fair.
(b) In judging the reasonableness of the employer's conduct a tribunal must not substitute its decision as
to what was the right course to adopt for that employer.
(c) In many (though not all) cases there is a band of reasonable responses to the employee's conduct
within which one employer might reasonably take one view, another quite reasonably take another.
(d) The function of the tribunal, as an industrial jury, is to determine whether in the particular
circumstances of each case the decision to dismiss the employee fell within the band of reasonable
responses which a reasonable employer might have adopted. If the dismissal falls within the band the
dismissal is fair; if the dismissal falls outside the band it is unfair.'
ANNEX B
REDUNDANCY DISMISSALS CHECKLIST (NAECI 15.8.1(b))
In appeals brought under NAECI 15.8.1(b) ('Redundancy dismissals'), the questions for
the NJC Dismissal Arbitration Panel to consider will normally include (but need not be
limited to) the following:
1. Was there a genuine redundancy situation?
2. Was the pool for selection:
(a) Clearly defined; and
(b) Rationally defensible; and
(c) Consistent with the requirements of one of the options available under NAECI
16.4(c); and
(d) Free from unlawful direct/indirect discrimination?
3. Were the selection criteria (including any tie-breaker):
(a) Clearly defined, and not overlapping; and
(b) Rationally defensible; and
(c) Objective and/or verifiable; and
(d) Free from unlawful direct/indirect discrimination?
4. Were the weightings attached to particular criteria (if any) rationally defensible?
5. Viewed overall, do the selection criteria appear to have been applied fairly and
objectively?
6. In the circumstances, was adequate consultation undertaken?
7. Were reasonable steps taken to find alternative employment?
8. Taking all relevant circumstances into account, was the employer's decision to
dismiss the employee within the 'band of reasonable responses' open to the
employer?1
9. Were any failings under 1-8 above rectified at an earlier appeal stage?
(c) In many (though not all) cases there is a band of reasonable responses to the employee's conduct
within which one employer might reasonably take one view, another quite reasonably take another.
(d) The function of the tribunal, as an industrial jury, is to determine whether in the particular
circumstances of each case the decision to dismiss the employee fell within the band of reasonable
responses which a reasonable employer might have adopted. If the dismissal falls within the band
the dismissal is fair; if the dismissal falls outside the band it is unfair.'
ANNEX C
ORDER OF BUSINESS AT PANEL HEARING
1. Panel meets in private
- elects chairman.
- considers written evidence.
- agrees conduct of hearing.
2. Panel invites applicant's representatives and respondent's representatives into room.
3. Chairman
- introduces Panel.
- explains how the hearing will be conducted.
- invites both parties involved to introduce themselves.
4. Applicant's representative presents case.
5. Panel questions* applicant's representative.
6. Respondent's representative questions* applicant's representative.
7. Respondent's representative presents case.
8. Panel questions* respondent's representative.
9. Applicant's representative questions* respondent's representative.
10. Applicant's representative sums up.
11. Respondent's representative sums up.
12. Panel privately considers its decision, which is based on its assessment of all
relevant circumstances, and addresses the question of the applicant's travel
expenses.
13. Panel gives its formal decision to both parties.
14. Panel issues a written communiqu.
Part 3:
Appendix G
NON-UK CONTRACTORS AND NON-UK LABOUR ON
ENGINEERING CONSTRUCTION SITES
G.1 Background
Citizens of all but two of the European Union (EU) States have the automatic right of
residency and employment in the UK and the National Agreement for the Engineering
Construction Industry (NAECI) makes specific provision for the terms of employment of
posted workers on in-scope work i.e. they must be paid the same as UK employees and
strictly in accordance with NAECI.
NAECI section 5.1 gives companies the right to recruit whomsoever they consider to be
the most suitable for the tasks in question. There will be occasions when, for varying
reasons, a company may award a package of work to a non-UK contractor (many of
whom are already in membership of ECIA). Non-UK contractors may already employ
some labour resource which they may have used on previous projects and which they
may choose to utilise on the work they have secured in the UK. Provided that this labour
force consists of EU citizens (from 1 January 2014, this will also include those from
Bulgaria and Romania who at this point will acquire the right to work in the UK) using
such employees is entirely lawful within both European and UK law.
All contractors are obliged to determine the appropriate supervision requirements for
their employees.
This process applies equally to non-UK contractors, who identify a need to recruit
further employees in excess of their regular workforce and it should ensure that
vacancies are advertised in UK Job Centres, before any initiatives to recruit from the
rest of the EU take place.
G.8 Summary
This Appendix has been issued to:
Ensure that UK workers have equality of opportunity to apply for vacancies;
To encourage companies to establish and maintain good communication between
all the parties;
To help determine harmonious industrial relations, likely to be best achieved
through meaningful consultation and working together.
Subject Index
PAGE SUBJECT NAECI REFERENCE
30 Accommodation allowance 9.2
16 ACE 5.4
33 Air travel 9.5
34 Annual leave payment and calculation 10.0
15 Apprentices 5.4.4
8 Asbestos removal 1.6.2
64 Auditors 20.4(a)(iv)
18 Basic working week 7.1
41 Bereavement leave 11.4
24 Call-out 7.4(h)
60 Categorised work 18.1
60 Category of projects 18.1
16 Competence assurance 5.4.5
43 Conditional Death Benefit 12.8
56 Contractual severance pay 16.5(a)
43 Death benefit 12.8
42 & 43 Death of a work colleague 12.0
11 Direct employment 4.0
52 Dismissal Arbitration Panels & Practice Directions 15.8.2 & Appendix F
51 Dismissal - appeal against 15.8
46 Disputes Adjudication Panels & Practice Directions 14.8 & Appendix E
7 Duration of NAECI 1.5
10 Efficient use of working hours 3.1
11 Employee assessments 3.4
60 Fixed productivity allowance 19.2
13 Grading of jobs 5.4.2
44 Grievances - procedures internal & external 14.0
50 Gross misconduct 15.7
26 Guarantee provisions 8.1
36 Holidays - distribution 10.7
34 & 35 Holiday entitlements accrual 10.1 & 10.5
37 Holiday entitlements on redundancy 10.11
37 Holidays - four day working 10.12
38 Holidays - 9-day fortnight 10.13
35 Holiday payments 10.3
18 Hours of work 7.1
17 & 60 Incentive bonus arrangements 6.3 & 19
27 Inclement weather payments and rules 8.3
7 Industry agreements - other 1.6
12 Industry occupations 5.4.1
6 Key objectives of NAECI 1.1
25 Local standby arrangements 7.4(k)
31 London supplement 9.3
64 Long term repair and maintenance operations 20.4(b)
47 Managing discipline 15.0
63 Major new construction projects 20.4(a)
65 Major events 20.4(c) & (d)
31 M25 - Special travel & accommodation within 9.3
25 Meal breaks 7.5
7 & 89 National Joint Council 1.4 & Appendix B
97 National stewards forum Appendix C
10 NJC website 1.8
128 Non-UK contractors; guidance Appendix G