Local Goverment Terms and Conditions of Employment
Renfrewshire Council · 12 June 2025
Back to Finance, Resources and Customer Services Policy Board — 12 June 2025 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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___________________________________________________________________ To: Finance, Resources & Customer Services Policy Board On: 12 June 2025 ___________________________________________________________________ Report by: Report by the Director of Finance & Resources ___________________________________________________________________ Heading: Local Government Terms and Conditions of Employment ___________________________________________________________________ 1. Summary 1.1 The Council, through its People Strategy, has made significant and sustained investment in the workforce in recent years, recognising that a motivated, healthy, and well-supported workforce is essential to the continued delivery of high-quality public services. This sustained investment demonstrates the Council’s proactive approach to workforce development and wellbeing, well beyond the baseline provisions agreed with Trade Unions during the last comprehensive review of conditions of service in 2009. Our ongoing investments reflect a clear and deliberate strategic intent to enhance the employee experience, improve work-life balance, and ensure the Council remains an employer of choice in a competitive labour market. 1.2 Members will be aware that the Council has made considerable progress in strengthening its workforce infrastructure through the targeted investment in pay modelling, the implementation of inclusive and progressive HR policies and employee benefits, along with the redesign of key frontline services. These efforts have not only enhanced the working lives of our employees, by promoting fairness, flexibility and wellbeing; but have also contributed to the tangible and flexible improvements we see day to day in service delivery for our communities. This integrated approach reflects the Council’s commitment to building a modern and responsive organisation that supports both our people and the communities we serve.
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1.3 The Council remains fully committed to delivering high-quality services that our communities need and have come to expect. However, this commitment must be balanced with a clear and realistic understanding of the financial challenges we face. With employee costs being a significant part of the Council’s overall budget, it is essential that we take considered and responsible steps to help ensure the long-term financial sustainability of the Council. This means taking strategic decisions now that will protect our ability to deliver vital frontline services in the years ahead, while continuing to support our workforce and uphold the values that underpin public service. 1.4 As we navigate an increasingly challenging fiscal environment, it is essential that we better align our workforce conditions of service, many of them legacy decisions, with the evolving needs of the organisation and the communities we serve. One of the key areas requiring attention is our current terms and conditions of employment for Local Government Employees, which have remained unchanged since 2009. 1.5 The requirement for a review is both timely and necessary and is not solely a response to financial constraints. It is a strategic opportunity to modernise our employment framework in a way that better reflects the needs of a 21st-century public service. The current arrangements, while historically effective, no longer align with the operational flexibility, workforce expectations, and service delivery models required in today’s environment. Modernising these terms will enable the Council to respond more effectively to changing service demands, support a more flexible and inclusive workforce, and ensure that our future employment offer remains modern, competitive and sustainable. 1.6 At the 12 September 2024 Finance, Resources and Customer Service Policy Board, Members were asked to note that Council officers were in discussions with Trade Unions with a view to modernising some of the terms and conditions of employment, namely proposed changes to public holidays, aiming to reach agreement for the Council to implement revised provisions on 1 January 2025. At the 21 November 2024 policy board, Members were provided with details of an offer made to the Trade Unions proposing to convert 6 of the current 12 public holidays into annual leave days for employees, retaining Christmas, New Year and Easter as the fixed public holiday dates. There was no overall reduction in leave entitlement. Employees would simply have had more flexibility to decide when to use their 6 converted annual leave days (pro rata) throughout the year. 1.7 The offer was also accompanied with an appropriate compensation package which would have been paid to approximately 20% of the Council’s 6,500 local government workforce. This payment was in recognition of those who may have been impacted by a potential loss of future overtime earnings on the public holidays being converted into annual leave. As part of that offer, the Council was also seeking a commitment from the Trade Unions to review and modernise current annual leave provisions and the festive closure arrangements (Christmas and New Year closure of non-essential services).
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1.8 Unison, Unite and GMB Trade Unions unanimously rejected the Council’s offer, without balloting their memberships, asking Council officers to reconsider the overall number of public holidays to be converted into annual leave, and to review the composition of the one-off compensation payment to employees, and those it may apply to. 2 Recommendations 2.1 Members are asked to note the current position on discussions with Unison, Unite and GMB Trade Unions, and that an update on discussions will be provided at the September Policy board. 3 Current Position 3.1 Over the past six months, Council officers have continued to engage in constructive dialogue with the Trade Unions, carefully considering the feedback provided throughout the negotiation process. In response, Council officers have undertaken further detailed data analysis and cost modelling to reshape and strengthen the overall offer, with the aim of trying to reach a position where Trade Unions feel able to ballot their members. 3.2 In a genuine effort to progress negotiations and demonstrate flexibility, the Council has now extended the scope of the offer beyond its original parameters and presented this to the Trade Unions for consideration. As discussions remain ongoing with the Trade Unions which may adjust the exact package on offer, Members are asked at this point to note the key components of the revised offer as set out in sections 3.5 to 2.20 of this report. Members should also be assured that officers have made a significant and good faith effort to respond to the concerns raised by Trade Unions and to broaden the scope of the offer in a meaningful way. 3.3 Council officers have also acknowledged that the Trade Unions represent a wide and varied set of expectations and aspirations on behalf of their members, reflecting the diversity of roles, experiences, and priorities across the workforce. While this input is both valuable and necessary to the negotiation process, it also introduces a level of complexity, as some of the feedback on the Council’s proposals will be a challenge to meet in full. The Council will therefore continue to operate within defined financial and operational parameters. Nevertheless, Council officers have made every effort to respond constructively and fairly to the key issues raised, ensuring that the revised offer remains both realistic and sustainable. 3.4 The revised offer presented to the Trade Unions comprises the following key elements:
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3.5 Public Holidays - The offer includes proposals to convert designated public holidays into flexible annual leave entitlements offering all 6,500 employees greater flexibility in managing their time off, while supporting the Council’s strategic objective to realise operational efficiencies, to reinvest resultant savings into future sustainable workforce development and support. In addition, the one- off compensation payment referenced in section 1.7 of this report has been equitably re-structured to ensure all employees receive a share, with the value of individual payments calculated based on the average proportion of public holidays worked over the past three years. This approach ensures a fair and transparent distribution aligned with each employee’s contribution. 3.6 Annual leave - The revised offer includes a proposal to modernise the Council’s annual leave arrangements by accelerating the timeframe in which employees reach their full entitlement. This change would bring the Council more in line with national benchmarking and reflects a significant investment in the workforce. The proposal also includes an enhancement to the entry-level entitlement, offering improved leave provisions for new employees. While the overall maximum entitlement remains unchanged, the revised structure aims to provide earlier access to additional leave, supporting employee wellbeing and retention. As a result of these changes, approximately 3,200 employees would see an immediate uplift in their annual leave entitlement, receiving either one or two additional days. 3.7 To ensure a fair and consistent approach across the organisation, the Council is proposing to standardise the carry forward of annual leave entitlements, regardless of length of service. Under the revised arrangement, all local government employees would be permitted to carry forward up to 5 days of unused annual leave from one leave year to the next, with the expectation that this leave is used by 31 January of the following year. This proposal supports the health and wellbeing of the workforce by encouraging the regular and timely use of leave, helping to prevent excessive accumulation, and ensuring employees take adequate rest within the appropriate leave year. 3.8 To support fair and competitive recruitment from the health sector, the Council is proposing to recognise NHS service for the purposes of continuous employment. While the NHS already recognises local government service, the Council currently does not reciprocate. Although the NHS is not included under the Redundancy Modification Order, this change can be implemented locally through a policy amendment. Aligning our approach with sector best practice will enhance our ability to attract experienced candidates and promote equity across public service employment. 3.9 Day of No Work Requirement - The 1 day of no work requirement falls between Christmas and New Year and came into effect in October 2009. As part of that 2009 agreement, the Council closes for all non-essential services, including Renfrewshire House, for 3 days between the Christmas and New Year public holidays, effectively meaning a 2-week closure. Employees are required to retain and use 2 days of their annual leave to cover the first 2 days of closure with the 3rd day being allocated as a day of no work requirement.
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The day of no work requirement primarily benefits traditional office/hybrid-based employees and varies each year but is normally the workday preceding New Year’s Day. The Council estimates around 29% of the 6,500 local government workforce benefit from this two week closure each year. 3.10 It is also recognised that times have moved on significantly since this arrangement was introduced in 2009. The expectations and needs of our communities have evolved, and there is now a greater requirement for the Council to remain accessible and responsive throughout the year, including during the festive period. Considering this, the Council is proposing to reopen services during this time to ensure that vital support remains available to those who need it most. This proposal also reflects a broader commitment to fairness and equality across the workforce and the communities we serve. The current closure arrangements arguably disproportionately benefit those in traditional office-based or hybrid roles within non-essential services, while many frontline and community facing employees, who are often the first point of contact for vulnerable residents, do not experience the same level of flexibility or benefit. Reopening services during the festive period helps to address this imbalance by ensuring that all employees are treated equitably in terms of working arrangements and expectations. Should employees still wish to have 2 weeks off during the festive period, they would simply submit an annual leave request for each of the 3 working days. 3.11 Flexible Working Hours Scheme (Flexitime) - The Council introduced a Flexible Working Hours Scheme in 2004 to support a more adaptable and responsive working environment for specific groups of local government employees, primarily those in office/hybrid-based roles. The scheme was designed to provide employees with greater flexibility in their start, finish, and lunch times, enabling a better balance between work and personal commitments, while ensuring service delivery requirements continue to be met. Operating between the hours of 8:00am and 6:00pm, the scheme allows eligible employees to accrue additional hours, which can be used to take up to 2 flexi leave days per accounting period—potentially providing up to 24 additional days of leave annually, in addition to standard annual leave and public holiday entitlements. Employees may also carry forward up to 21 hours and 30 minutes (equivalent to three working days) from one accounting period to the next. It is currently estimated that around 22% of the Council’s 6,500 local government employees benefit from this provision. 3.12 However, working practices have evolved significantly since the scheme’s introduction. With the widespread adoption of hybrid working across the Council, many office-based employees now enjoy greater day to day flexibility than ever before. In contrast, frontline employees, who deliver essential, community-facing services, often do not have access to the same level of flexibility. This disparity has highlighted the need to modernise the Council’s approach to flexible working.
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3.13 The Council wishes to retain the core principles of flexibility, trust, and work-life balance that underpin the scheme. Crucially, the ambition is to extend these principles across the entire workforce, ensuring that all employees, regardless of role or work setting can benefit from a fair and consistent approach to flexible working. This includes the ability to vary start, finish, and lunch times locally, and to accrue and use agreed time off in lieu, without the need for formal processes. The aim is to embed flexibility as a core part of our working culture, supporting both individual wellbeing and service needs. The Council will seek feedback from trade union partners to explore how best to implement this more inclusive and equitable model. 3.14 Redeployment and Salary Conservation – In June 2009, the Council formally endorsed the principles of redeployment and salary conservation, as outlined in the Chief Executive’s report titled ‘Workforce Planning Issues’. This decision established a framework aimed at supporting workforce stability during periods of organisational change. 3.15 Redeployment is a key mechanism used by the Council to support employees whose roles may be displaced due to service reviews, restructuring, or changes in service delivery. The process aims to maintain employment security by identifying alternative roles that match an employee’s existing skills or where retraining can reasonably be provided. Redeployment opportunities may be at the same grade or, where necessary, at a lower grade with appropriate support. Trial periods of up to 12 weeks may be applied to assess suitability, particularly where retraining is involved. 3.16 The Council is committed to supporting employees impacted by this process, including the use of a corporately held Redeployment Register and competitive interviews where multiple candidates are identified. While every effort will be made to secure suitable alternative employment, employees who cannot be matched or who refuse two reasonable offers may face termination in line with Council policies and statutory obligations. At the moment, protection or salary conservation may be provided for up to 6 months during the redeployment period. 3.17 Since the introduction of the 6-month salary conservation period in 2009, the Council has encountered ongoing challenges in its practical application. Although this provision was approved as part of the wider workforce planning framework, Trade Unions have consistently raised concerns about its implementation. These concerns have, at times, led to disputes during redeployment processes, creating operational difficulties and placing strain on industrial relations. Given the persistence of these issues over several years, it is recommended that the current approach to salary conservation be reviewed in full and meaningful consultation with trade union partners. The objective is to reach a jointly agreed position that ensures clarity, fairness, and consistency for all parties involved in future workforce change processes. Therefore, the Council is prepared to reconsider its position on the application of the 6-month salary conservation period, aligning its approach with national benchmarking and best practice to help resolve this long-standing matter.
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3.18 Overtime Working - remains a critical component of the Council’s operational delivery, providing essential flexibility to respond to increased service demands, seasonal pressures, short-term projects, and emergency situations requiring specialist expertise. When used effectively, it supports service continuity and can help avoid the need for permanent recruitment. However, it must be carefully managed to mitigate risks such as employee fatigue and rising costs. 3.19 The Council continues to incur significant levels of overtime expenditure each year. Rather than seeking to reduce this through changes to existing overtime rates, the Council proposes to develop and implement a new Overtime Policy. This policy will be developed in full consultation with trade union partners and will aim to establish a fair, consistent, and sustainable approach to overtime management across all services. 3.20 The introduction of this policy represents an opportunity to strengthen governance and oversight of overtime usage. It will provide clear and equitable guidance for managers and employees, support improved workforce planning, and help reduce reliance on overtime where appropriate. By aligning with best practice and developed collaboratively with trade unions, the policy will also promote positive industrial relations, safeguard employee wellbeing, and ensure the Council continues to deliver high quality services in a cost-effective and sustainable manner. 4 Next Steps 4.1 Council Officers will continue to engage constructively with Trade Union representatives to seek agreement on a fairer and more inclusive package of terms and conditions. These proposals aim to address the legacy issues outlined in the report, ensuring that all local government employees benefit equally. Officers believe the proposed changes represent meaningful progress and demonstrate the Council’s ongoing commitment to achieving a fair and sustainable outcome that supports both staff and the long-term interests of the organisation. 4.2 Trade Unions have been asked to give the offer full consideration and to present it to their members for a ballot. 4.3 A further update will be provided to Members at the September Board meeting. If agreement can be reached with the Trade Unions, the Council will look to implement the changes, on a phased basis, from January 2026.
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Implications of the Report 1. Financial – The terms and conditions changes proposed within the report would, if formally agreed, incur both additional costs and will generate recurring savings. One-off costs relating to compensation payments will require to be funded from reserve balances if agreed. The precise detail of costs and savings incurred will be outlined in a future report assuming trade union agreement to the package of revisions is reached, however an overall marginal recurring saving is anticipated. 2. HR & Organisational Development – as outlined in the report. 3. Community/Council Planning – None. 4 Legal - In considering any changes to Local Government Terms and Conditions, the Council is legally required to follow a fair and transparent process. This includes engaging in genuine and meaningful consultation with employees impacted and their recognised Trade Unions. The consultation process the Council is following explains the reasons for the proposed changes, invites feedback, and demonstrates that alternative views and suggestions have and will continue to be considered as things progress. Agreement must be sought with Trade Unions before any contractual changes are implemented, as imposing changes without consent could result in legal claims such as breach of contract, constructive dismissal, or unauthorised deductions from wages. Members should note that by following these steps, and by maintaining open, respectful dialogue with Trade Unions, the Council can manage change in a way that is both legally compliant and aligned with our values of fairness and transparency. 5 Property/Assets – None 6 Information Technology – None 7 Equality & Human Rights – Given the recommendations contained within this report now do not make any changes to existing arrangements, no negative impacts on equality groups or potential for infringement of individuals’ human rights have been identified. 8 Health & Safety – None. 9 Procurement – None 10. Risk – None. 11. Privacy Impact – None. 12. Climate Risk – None.
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13. Children’s Rights – None. 14. Cosla Policy Position – None. _______________________________________________________ List of Background Papers - None ___________________________________________________________________ Author: Raymond Cree, Head of People and Organisational Development Email: raymond.cree@renfrewshire.gov.uk