8 - Local Government Terms and Conditions of Employment
Renfrewshire Council · 11 September 2025
Back to Finance, Resources and Customer Services Policy Board — 11 September 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: 11 September 2025 ___________________________________________________________________ Report by: Report by the Director of Finance & Resources ___________________________________________________________________ Heading: Local Government Terms and Conditions of Employment ___________________________________________________________________ 1. Summary 1.1 In June 2025, Council officers presented a report to Elected Members outlining the details of a formal offer made to Unison, Unite and GMB Trade Unions to modernise the legacy terms and conditions of employment for Local Government Employees, which have remained unchanged since 2009. If agreed, the revised package will be rolled out in phases starting from January 2026 to support a smooth and well managed implementation. 1.2 Impacting approximately 6,500 employees, the proposal was developed in alignment with the Council’s People Strategy and reflects a strategic commitment to building a more modern, fairer, flexible and financially sustainable employment framework that supports both workforce wellbeing and the long-term delivery of high-quality public services. It also recognises the need to remain competitive in the labour market by offering employment arrangements that attract and retain the best talent in a changing public sector landscape. 1.3 The offer presented to the Trade Unions included proposed changes to the following key areas of the terms and conditions package: • Converting six public holidays to annual leave, and a proposed compensation package for employees who may experience a reduction in future earnings due to the loss of overtime opportunities on these days. • Making improvements to current annual leave provisions. • Standardising the approach to carry forward annual leave from one year to the next. • Recognising NHS employment as continuous service to support smoother movement between Health and Council roles.
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• Reopening services across the festive period to ensure continued support for our communities at a time of increased need and ending the previous day of no work requirement to strengthen service continuity and responsiveness. • Replacing the current Flexi system with a new scheme that keeps the core values of flexibility, trust, and work-life balance, and applies them fairly across the whole workforce. • Modernising redeployment and salary conservation policies to strengthen support for employees impacted by change, taking proactive steps to minimise the need for redeployment, and ensuing a fair, flexible, and person-centred approach to organisational change. • Introducing a revised notice period structure based on job roles rather than pay frequency, to improve consistency, support workforce planning, and reduce unnecessary disruption to services. Flexibility will be retained to agree earlier release dates where appropriate. • Developing a new overtime policy to ensure fair and consistent practices, improving oversight and workforce planning, and reducing reliance on overtime through better service management and employee wellbeing safeguards. 1.4 Since making the initial offer, Council officers have engaged in extensive and constructive dialogue with Trade Unions to support them in reaching a position where they feel able to ballot their members. This has included providing analysed data, clarifying elements of the proposal, and responding to concerns raised. 1.5 In early September, a revised and final offer was made, reflecting a significant shift in the Council’s position in response to feedback. Council officers believe that this final offer presents a progressive and sustainable package that addresses longstanding concerns, promotes fairness, and strengthens the Council’s ability to meet the evolving needs of its workforce and communities. It builds on years of investment in our people, shaped by the People Strategy and supported by strong partnership working with Trade Unions. 1.6 If agreed, the package will mark a major step forward in modernising our employment framework, embedding consistency, flexibility, and wellbeing, and positioning the Council as a leader in balanced workforce reform. 1.7 At the time of writing, Trade Union colleagues were making preparations to ballot their members, with results expected around late September or early October 2025. 1.8 As part of our commitment to open and inclusive communication, updates have been shared with senior officers, managers, and employees across the Council to outline the key areas under discussion. Employees have been encouraged to speak with their Trade Union representatives to explore what the offer means for them and to ensure they feel informed and supported ahead of the ballot.
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___________________________________________________________________ 2 Recommendations 2.1 Elected Members are asked to note: • The status of discussions with Unison, Unite, and GMB Trade Unions. • Council officers are fully prepared to implement the proposals promptly should the ballot results return an acceptance. • That formal negotiations will conclude if the ballot results return a rejection, as all reasonable efforts to reach agreement have been made. • Elected Members will receive a final update at the 20 November Policy Board, detailing the ballot outcome and the Council’s intended next steps. ___________________________________________________________________ 3 Engagement and Consultation with the Trade Unions 3.1 Over the past three months, Council officers have undertaken detailed analysis and modelling to reshape and strengthen the offer made to the Trade Unions in June 2025. This has included reviewing the scope, structure, and impact of key proposals, with a view to presenting a revised package that is fair, inclusive, and sustainable. 3.2 In an effort to progress negotiations, and now having exhausted discussions, the revised and final offer presented to the Trade Unions reflects a significant movement from the Council’s original position. While the core principles of fairness, flexibility, and operational efficiency remain unchanged, the Council has broadened the scope of the offer to address key concerns raised by Trade Unions. This includes a revised approach to public holidays, a substantially altered compensation package, and enhancements to annual leave arrangements for all. 3.3 In addition to these changes, the Council has committed to jointly reviewing and modernising a range of related workforce policies with Trade Unions. This commitment reflects a broader ambition to ensure that the Council’s employment framework is not only fit for purpose but also aligned with the values of fairness, inclusion, and sustainability. 3.4 Council officers are not currently able to share the full details of the revised offer as at the date of this meeting. This arises from the confidential and evolving nature of the process, and reflects our commitment to handling discussions with care and ensuring that employees directly impacted are informed of the proposals through appropriate internal channels before any information is shared more widely. However, members are invited to note the key elements of the offer presented to the Trade Unions, as outlined in sections 3.6 to 3.19 of this report. Officers have made a considerable effort to respond to the concerns raised by Trade Unions and to enhance the offer in a meaningful and inclusive way.
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3.5 In response to feedback from the Trade Unions, a revised and final offer presented comprises the following key elements: 3.6 Public Holidays –The Council is now proposing to convert four public holidays into annual leave, rather than the original six. This change does not reduce leave entitlement for employees. Instead, it is intended to offer greater flexibility by giving employees more choice over when they take their leave. In addition, the value and structure of the proposed one-off compensation payment has been significantly strengthened to reflect the potential impact on future overtime earnings. Trade Unions have indicated greater confidence in the proposed tiered approach to the one-off payment, which is based on actual earnings and reflects a fair and practical method of application. 3.7 Annual leave - The Council has further strengthened its annual leave proposals to deliver a more inclusive and equitable outcome for all employees. Initially designed to benefit a portion of the workforce, the updated approach now ensures that every employee will gain earlier access to enhanced leave entitlements. These changes directly respond to Trade Union concerns, particularly around limited benefits for those with under 10 years or over 20 years of service, and include improvements to entry-level leave. To further support fairness, the Council has also addressed the impact of removing the legacy festive closure arrangement. This change will be reflected in the updated annual leave structure, ensuring no employee is disadvantaged. Under the revised proposal, annual leave entitlements will range from 26 to 36 days, excluding public holidays. This reinforces the Council’s commitment to consistency, wellbeing, and fair employment practices, and based on benchmarking with other local authorities, positions these provisions among the most progressive in Scotland. 3.8 Standardising the approach to carrying forward annual leave from one year to the next - The Council is now proposing to introduce a more flexible approach to annual leave carry-forward. Employees will be able to retain up to five unused days from one leave year to the next, with the option to use them at any point before 31 December, rather than 31 January as previously proposed. In exceptional cases, additional days may be carried forward with appropriate approval. To support wellbeing and ensure leave is used regularly, quarterly reminders will be issued through Business World, and managers will actively encourage staff to take their leave throughout the year. 3.9 Recognising NHS Employment as Continuous Service - To improve recruitment from the health sector, the Council plans to formally recognise previous NHS service as part of continuous employment. While local government service is already acknowledged by the NHS, this reciprocal arrangement has not yet been adopted by the Council. Although the NHS is not covered under the Redundancy Modification Order, this change can be introduced locally through a policy update. Aligning with wider public sector practices will help attract skilled candidates and ensure a more consistent and equitable approach across public service roles.
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3.10 Day of No Work Requirement - The Council is proposing to end the long- standing festive closure arrangement for non-essential services, which includes a designated “day of no work requirement” between Christmas and New Year. While this arrangement has historically benefited office-based staff, it no longer reflects the way services are delivered or the needs of the community. Reopening services during this period will help ensure vital support remains available, particularly for vulnerable residents. Following discussions with Trade Unions, the Council has confirmed that no employee will be disadvantaged by this change. Any impact will be recognised through adjustments to annual leave provisions, ensuring fairness across the workforce. Employees will still be able to request leave during the festive period, and guidance will be developed to support consistent and equitable decision-making. 3.11 Flexible Working Hours Scheme (Flexitime) - The Council’s Flexible Working Hours Scheme, introduced over 20 years ago, has supported greater flexibility for office based and hybrid employees, allowing adjustments to start and finish times and the accrual of flexi leave. However, as working practices have evolved, particularly with the rise of hybrid working, the scheme now benefits only a portion of the workforce, creating an imbalance with frontline staff who often lack access to similar flexibility. Recognising this, the Council is committed to modernising its approach to ensure a fairer and more consistent experience for all employees. 3.12 Following engagement with Trade Unions, the Council has confirmed its intention to replace the current scheme with a new, inclusive model that retains the core principles of flexibility, trust, and work-life balance. The new approach will continue to support flexible working patterns and ensure that any additional hours worked are returned. Crucially, the Council and Trade Unions will work together to jointly develop and agree the new framework, ensuring it reflects the diverse needs of the workforce and promotes equity across all roles and services. 3.13 Redeployment and Cash Conservation - The Council has long supported redeployment and salary conservation as part of its approach to managing organisational change. These arrangements help maintain employment security by identifying suitable alternative roles for employees whose posts are impacted by service redesign. While redeployment remains a vital tool, the practical application of salary conservation has presented challenges over time, particularly around consistency and fairness. Although relatively few cases arise each year, concerns raised by Trade Unions have highlighted the need for a more modern and transparent approach. 3.14 In response, the Council and Trade Unions have agreed to carry out a joint review of the current redeployment and salary conservation arrangements. This work will focus on developing a fairer, more inclusive model that reflects the realities of service change and supports employees through transition. The review will explore options such as direct matching, retraining, and flexible support, with a shared commitment to minimising any negative impact on employees. Salary conservation support will be managed on a case-by-case basis to better reflect individual circumstances and sector best practice.
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3.15 Overtime Working - Overtime continues to play an important role in supporting the Council’s ability to respond to fluctuating service demands, urgent priorities, and short-term pressures. While it offers operational flexibility and can reduce reliance on temporary staffing, it must be managed carefully to avoid excessive costs and protect employee wellbeing. Rather than altering existing overtime rates, the Council intends to introduce a refreshed policy that promotes consistency and fairness in how overtime is used across services. 3.16 Following constructive dialogue with Trade Unions, a joint commitment has been made to develop a new Overtime Policy. This will include regular monitoring of overtime patterns to identify where recurring use may signal the need for more sustainable staffing solutions. The Council will work with managers to explore opportunities for converting persistent overtime into permanent roles, where appropriate. Through improved planning and collaborative oversight, the aim is to ensure overtime remains a responsible, equitable, and well-governed part of workforce management. 3.17 Notice Periods - The Council is reviewing its current notice period arrangements to create a more consistent and operationally effective framework. The existing structure, which varies based on pay frequency, has been in place for some time but is increasingly seen as outdated. Short notice periods can lead to service disruption, particularly in roles that are difficult to recruit to or require specialist skills. To address this, the Council is proposing a revised approach that sets notice periods according to job level rather than pay cycle. 3.18 Under the new proposal, employees in roles up to grade 9 would give four weeks’ notice, while those in senior positions, grades 10–16, would provide eight weeks. This change is intended to support smoother workforce transitions and align with wider public sector practice. Flexibility will remain, allowing earlier release dates where operationally feasible and agreed with managers. 3.19 Temporary Employees - At the request of Trade Unions, the Council has agreed to carry out a focused review of temporary contracts that have been in place for two years or more. This exercise will involve close collaboration with service managers to assess whether there is an ongoing operational need for these roles. Where a sustained requirement is identified, the Council will actively consider converting temporary posts into permanent positions, if suitable. While any changes will depend on available resources and service priorities, this review reflects a shared commitment to improving job stability and promoting fair work. By working in partnership with Trade Unions, the Council aims to strengthen workforce planning and ensure that long-term temporary employees are treated equitably.
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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 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 – These proposed changes to terms and conditions will require a substantial reconfiguration of the Council’s ERP system (Business World), alongside a significant commitment of internal resources to support delivery. This reflects the scale and ambition of the proposals, which aim to introduce some of the most progressive employment provisions in Scotland. In recognition of the operational impact and the need for a well-managed transition, it is proposed that implementation be phased in from January 2026, as outlined earlier in the report. 7. Equality & Human Rights – The Recommendations contained within this report have been assessed in relation to their impact on equalities and human rights. No negative impacts on equality groups or potential for infringement of individuals’ human rights have been identified arising from the recommendations contained in the report. If required following implementation, the actual impact of the recommendations and the mitigating actions will be reviewed and monitored, and the results of any reassessment will be published on the Council’s website.
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8. Health & Safety – None. 9. Procurement – None 10. Risk – None. 11. Privacy Impact – None. 12. Climate Risk – None. 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