1 PURPOSE
1.1 This Policy sets out the requirements of employees utilising the Sodexho Childcare Voucher Scheme.
1.2 This Policy has been agreed between the Transport Executive and UNISON and is intended to support the Transport Executives commitment to supporting Family Friendly Policies.
1.3 The Childcare Voucher Scheme is operated on a Salary Sacrifice basis. The scheme enables employees to gain financially as Income Tax and or National Insurance contributions are not paid on this part of their salary.
1.4 The amount of vouchers employees can take is capped at £55 per week (£243 per calendar month). Employees’ net pay after vouchers should also remain above £435 per month (£100 per week). This is to ensure you always pay the minimum amount of National Insurance on which a number of state benefits, including Statutory Sick Pay, are dependent.
1.5 Employees are asked to contact the Human Resources Team for any further information or to join the scheme.
2 GENERAL PRINCIPLES
2.1 The Childcare Voucher Scheme is available to all Transport Executive employees whose child/ children are under 16. A child qualifies up to 1 September following their 15th birthday, or 1 September following their 16 birthday if they are disabled.
2.2 The Childcare Voucher Scheme is run in conjunction with Sodexho Pass and the Transport Executive.
3 EMPLOYEE RESPONSIBILITIES
3.1 The employee registers for the scheme on an agreement which alters their Terms and Conditions of employment allowing the Transport Executive to supply part of their salary as Childcare Vouchers.
3.2 The employee must read and agree to all the Terms and Conditions as stated in the Employee Salary Sacrifice Agreement, before joining the scheme, a copy of which is attached.
3.3 Vouchers can be supplied in two forms; E-Vouchers will be credited to the employees’ on-line account on payday. Funds from the employees’ account can then be transferred to the carer at any time. Paper vouchers are sent to the employees’ home address. The employee is required to give these vouchers to their carer to redeem them. Risk of loss or damage to the paper vouchers will remain with Sodexho Pass until delivery to you at which point the liability is passed to the employee.
3.4 If vouchers are not received within five working days of the agreed delivery date (15th of each month), the employee must notify the Financial Services Manager as soon as possible. The Transport Executive will then contact Sodexho Pass and replacement vouchers will be posted or credited as soon as possible. Neither the Transport Executive nor Sodexho Pass will accept liability for (or replace) any non-delivery or short delivery unless notified to us as provided in this policy.
3.5 Employees’ pension contributions will be based on the reduced salary plus the value of the Childcare Vouchers. Entitlements to sick pay, maternity pay, and paternity pay will be based on the reduced salary only.
3.6 Employees’ Working Tax Credit may be affected. Therefore, it is advisable for employees’ to contact the Working Tax Credit helpline before joining this scheme.
4 NOTICE/TERMINATION
4.1 In the event that an employee leaves the Transport Executive, the annual voucher value will be apportioned to the date of leaving. An adjustment will then be made in the final month whereby any outstanding vouchers will be given or any excess vouchers recovered from net pay, as stated in the Employee Salary Sacrifice Agreement.
4.2 An employee may terminate this agreement on giving the Transport Executive no less than 30 days notice to expire on any anniversary of the Commencement Date or on reasonable notice if a life changing event occurs.
4.3 The Transport Executive can terminate this agreement at any time on giving to the employee no less than 60 days written notice for any reason or on reasonable notice if a life changing event occurs.
4.4 For the purpose of this policy a life changing event is an unforeseen life event relating to you, your partner or your child including but not limited to death, redundancy, pregnancy, marriage or divorce.
4.5 The Transport Executive reserves the right to change the operator of this scheme within reasonable notice (60 days).
Employee Salary Sacrifice Agreement
Employee Section:
Title (Mr/Mrs/Ms/Miss)
First Name / Surname
Job Title / Email Address
Department/Section / Employer
Payroll Number / NI No
Home Address
Town
County / Home Tel No
Post Code / Work Tel No
Child’s/Children’s Date of Birth
Relationship to Child/Children
The Salary Sacrifice Agreement and the Order Form (collectively referred to as the Agreement) comprise the Terms and Conditions of your Salary Sacrifice Agreement.
1. Before entering into this agreement, you will have been entitled to receive the original monthly salary
2. As a consequence of entering into this agreement you will be entitled to receive the adjusted monthly salary and vouchers.
3. You and South Yorkshire Passenger Transport Executive acknowledge that this agreement constitutes a notice of a variation to the Terms in accordance with the provisions of section 4 of the Employment Rights Act 1996.
4. The term for this variation shall commence on (date)………………….....provided that your chosen childcarer has entered into an affiliation with Sodexho Pass.
5. In choosing your childcarer please note that Sodexho Pass requests that childcarers provide (where applicable) a Regulatory Body Registration or Approval Certificate (as at the date of their application for affiliation) but does not make any further checks on the carers. The affiliation of any carer to the childcare scheme does not mean that we or Sodexho Pass in any way recommends the carer. It is entirely your responsibility to select an appropriate and reputable childcarer. Neither we nor Sodexho Pass will under any circumstances be liable for any acts or omissions of the childcare services providers.
6. The annual voucher value will be received periodically over the year according to the Order Form. Your adjusted annual taxable salary will continue to be payable in equal monthly instalments.
7. Paper vouchers are sent to your home address. Give these to your carer who can then redeem them with Sodexho Pass. Each paper voucher will have a unique reference number and bear your name where requested.
8. Risk of loss or damage to the paper vouchers will remain with Sodexho Pass until delivery to you at which point the liability passes to you.
9. If you’ve opted for e-vouchers, these will be credited to your on-line account on payday. Funds from your account can be transferred to your carer at any time. Carers receive funds directly into their bank account within 3-5 working days by electronic (BACS) transfer.
I0. If any vouchers are not received within five working days of the agreed delivery date, you must notify us immediately and confirm in writing either by email, memo or letter. We will instruct Sodexho Pass to cancel any vouchers notified to us as not delivered and to notify the childcarer(s) nominated by you not to accept those vouchers. Replacement vouchers will then be posted or credited, as appropriate to you as soon as possible. Neither we nor Sodexho Pass will accept liability for (or replace) any non-delivery or short delivery unless notified to us as provided in this clause.
11. Pension contributions will be based on the reduced salary plus the value of Childcare Vouchers. Entitlements to sick pay, maternity pay, paternity pay etc will be based on the reduced salary only.
12. The difference between the original and the adjusted salary is equivalent to the total gross salary sacrifice as outlined in the Order Form. Appropriate deductions and returns will be made to the Inland Revenue, in respect of the revised salary and vouchers.
13. In the event that you leave South Yorkshire Passenger Transport Executive, the annual voucher value will be apportioned to the date of leaving. An adjustment will then be made in the final month whereby any outstanding vouchers will be given or any excess vouchers recovered from net pay. You hereby agree that any such deductions would be made in accordance with his/her contract.
14. You may terminate this agreement on giving us no less than 30 days notice to expire on any anniversary of the Commencement Date or on reasonable notice if a life changing event occurs. We can terminate this agreement at any time on giving to you no less than 60 days written notice for any reason or on reasonable notice if a life changing event occurs. For the purpose of this clause a life changing event is an unforeseen life event relating to you, your partner or your child including but not limited to death, redundancy, pregnancy, marriage or divorce. In addition, we may terminate this agreement if you commit a material breach of the provisions of this agreement and if remediable, have not remedied the breach within 30 days of our written notice to you to do so. If this agreement terminates, you will revert to the earlier salary entitlement with no voucher provision.
15. You acknowledge that we may pass certain of your personal data “the data” to Sodexho Pass. Your data will be treated as confidential by Sodexho Pass and will be used for the purposes of enabling it to provide the vouchers to you in accordance with this agreement and for the purposes of performing its obligations to us. In addition, Sodexho Pass may use your Data for the purposes of providing you with information about its other products and services. If you wish to receive such information, please indicate this by ticking the opt-in box.
16. This agreement shall be governed and construed in accordance with English law and the English courts shall have exclusive jurisdiction to determine any disputes which may arise out of, under or in connection with this agreement.
Signed / DateOrder Form
Please indicate voucher type:
Paper Vouchers / E Vouchers1. You must take the same amount in vouchers each month.
Please fill in the amount (monthly):
£2. Add up the value for each pay period to give Total Gross Salary Sacrifice for this year
£3. By signing below you agree to the variation in terms and conditions of your employment described in the Salary Sacrifice Agreement and you agree to abide by the conditions of the Salary Sacrifice Agreement. You hereby authorise your employer to reduce your salary accordingly and in the event of leaving the employer you authorise them to adjust any excess or outstanding vouchers from your final salary.
Signed / Date*Please complete your childcare provider details in section 4
AuthorisationChecked by / HR Stamp
Date
Fwd to Sodexho on
PAID MID MONTH
PAID END OF MONTH
4. Enter your Childcare Provider Details
Address
Town / County
Post Code
Contact First Name / Surname
Telephone / Fax No.
Email Address
It is required that all carers be registered or approved.
Type of childcare provider (please tick appropriate box)
Registered Childminder / Relative
Registered Nursery / Out of School Scheme
Other (Please detail)
Please attach a copy of your registration or approval certificate
5. To enable us to reimburse your childcare provider, please ask them to fill in their bank details:
Name of BankBranch Address
Town / County
Post Code
Account Name
Account Number / Sort Code
Signature / Date
Position / Email Address
Employer Name: / Ref No. (Office Use Only)
Full Name (Employee)
Agreement Reference P40 (April 2008)