East Devon District Council

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Policy Market Supplements Policy

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3. Principles of this policy

 Any market supplement shall be objectively justifiable and will be applied according to the following principles.

  • Market supplements will normally only be considered for posts identified in the Workforce Development Strategy as hard to fill. This information is derived from national surveys conducted by the Employer’s organisation.
  • It cannot be assumed that simply because other employers offer higher salary levels that we will necessarily be able to follow suit.  Our aim to pay at the median quartile for other similar local councils and will take into account national, regional and local salary information.
  • Market supplements will normally be reviewed annually and consequently will be withdrawn, should the review demonstrate that current evidence does not justify a supplementary payment continuing.
  • It is important that employee expectations of market supplements are managed and before a market supplement is awarded, an employee must agree to and sign the attached amendment to their Contract of Employment.
  • If a market supplement is introduced to a particular post category, it shall not automatically be applied to all current employees in that post category.  The law requires that to ensure equal pay principles, market supplements are only awarded in cases where a genuine material difference can be demonstrated.
  • Market supplements form part of an employee’s pay and will be pensionable.  Any overtime payments will include the market worth element.  Payments for sickness and holiday will include the market worth element.
  • Market supplements will be highlighted as part of an employee’s salary when mortgage application references are being completed and total income calculations are being carried out.
  • In exceptional circumstances, market supplements may be paid in the form of one off cash payment’s at the recruitment stage but would be subject to a payback clause.  This clause is 100% should the individual subsequently leave within 1 year of employment and 50% should the individual subsequently leave within 2 years of employment.  Such market supplements are subject to the same considerations and procedures as other market supplements.