Minutes:
Selena Lansley (Head of Workforce) introduced the report which updated the Board on key developments in workforce policy since the last meeting.
Members noted that the review of the National Pay Spine was ongoing, but the process was lengthy and a total increase of 3% would not meet the National Living Wage by 2020. A collective agreement by the Employer’s Side and Unions was currently unlikely, but discussions with the Unions to date had focussed on the principles underpinning the review and how those would be translated into options.
· In response to a question on the London Living Wage it was highlighted that governance arrangements came under the Greater London Council, but that the National Joint Council may be minded to include the London Living Wage in the design principles.
· National employers would have to think carefully about whether they paid the living wage to contractors. By not paying at the floor of the living wage, there could be consequences for contractors by implication.
· Members noted that due to concerns with the ongoing and late development of legislation on HMRC guidance and the online tool for assessing IR35 employment tax status, the LGA alongside SOLACE, Cipfa and Penna had called for the implementation to be delayed so HMRC could place the proper arrangements in place to ensure that reforms met the government’s aims.
· Members noted that the LGA would continue to keep a watching brief on sleeping-in payments which do not count in calculations of the national minimum wage. The Community Wellbeing Board had suggested joint action on the proposal for annual audits on services commissioned by councils to make sure they were covered by the national minimum wage, and it was proposed that letters be drafted and signed off by Lead Members of both Boards. Members endorsed this approach.
Decision
The Resources Board noted the update.
Action
Letters to be drafted and signed off by Lead Members of the Resources and Community Wellbeing Board on annual audit new burdens.