The following details have been provided by the PCS DWP Group:

DWP Managers’ Guide Updated

DWP has updated the DWP Managers’ Guide for Making Decisions about Efficiency Departure Compensation for compliance with Cabinet Office changes for the Civil Service Compensation Scheme (CSCS) which have been imposed without agreement with PCS. This Guide is available to all DWP employees under ‘Tools’ on the Attendance Management DWP Intranet site.

Criteria for payment

The DWP Managers’ Guide for Making Decisions about Efficiency Departure Compensation confirms the criteria for payment under paragraph 3 which states:

3. 3. A payment would be made only if:
   

• the case meets the criteria set out in Cabinet Office Efficiency compensation guidance, which is part of paragraph 11.4 of the Civil Service Management Code –and is the authoritative, cross-Government policy on awarding Efficiency Departure Compensation;
  

• in cases of short-term, intermittent sickness absence, there is medical evidence to show the employee stands out from other sickness absence cases by having an underlying causal medical condition or an unusual susceptibility to illness, and they have done all they reasonably could to overcome these problems;
  

• in cases of long-term sickness absence, there is evidence that the non-attendance was beyond the employee’s control and they have done all they reasonably can to improve;
  

• there is clear evidence to justify the level of the award – for example documents, medical or occupational health reports, observed behaviour / attitudes;
  

Obligation for employees to co-operate

The Cabinet Office guidance makes it clear that there is an obligation on employees to co-operate with measures to improve, make reasonable adjustments and keep in touch and that a failure to engage where possible should be expected to have a negative effect on any compensation awarded.

Compensation only for ill-health related cases

Compensation must not be awarded in dismissals where there is no evidence that it is related to an underlying ill-health condition or conditions.

Other eligibility changes

The revised scheme formally brings members of the Nuvos and alpha pension scheme into the CSCS for inefficiency compensation purposes. This means that MyCSP will now be authorised to make these payments.  It will no longer be necessary for employers to make the payments on an Ex Gratia basis as has previously been the case.

Maximum level of compensation

The Cabinet Office reviewed the tariff for ‘Inefficiency Compensation’, now called ‘Efficiency Departure Compensation’ and aligned it with the new Voluntary Redundancy terms which have also been imposed without agreement with PCS in EPN 470.

This will mean that the maximum (100%) compensation is calculated by using a tariff of 3 weeks per year of service, capped by 18 months’ salary. The calculation should also include the use of the £24,500 underpin and will mean that employees above scheme pension age could receive compensation (capped at 6 months’ salary).

To protect the lower paid, the minimum salary used for calculating exit payments (the ‘lower paid underpin’) increased to £24,500. EPN 470 – Civil Service Compensation Scheme (CSCS) changes – is available on the Civil Service Pensions website

The new DWP Managers’ Guide guidance now includes the Cabinet Office guide for calculating compensation. The scale is a sliding scale and any percentage figure from 0 to 100 per cent can be used.

PCS advice for Members

Members should be advised that it is best practice to co-operate with the Attendance Management Procedures. For example, an individual may choose not to have an OHS referral but this decision may be used by a manager to justify awarding a lower rate of compensation should the case reach the dismissal stage.

The Civil Service Appeals Board (CSAB) no longer accepts appeals against dismissal but still accepts appeals about the level of compensation awarded. Members who want to appeal against the part, or non-payment of compensation under the Civil Service Compensation Scheme must do so via the CSAB web site within 21 days of the effective date of termination. They should not wait for the result of their internal appeal under the DWP Attendance Management Procedure. The role of Local PCS Representatives will include providing advice, support and representation in disputes about the level of compensation which may be awarded under the DWP Managers’ Guide but should refrain from giving estimates of the amount of any compensation which may be paid in an individual’s personal case.