Optional remuneration arrangements – draft guidance published
21 March 2017
Employment Income Manual (EIM) guidance will be finalised and published following Royal Assent of Finance Bill 2017.
A common question that we at the CIPP have received since the publication of the Finance Bill 2017 clauses has been “what constitutes a change, variation or modification to the contract to ensure full protection under the transitional arrangements?”
Several examples provided within the draft EIM guidance aim to help to illustrate what might, or might not constitute a change, variation or modification of contract. What is made clear is that An arrangement is not regarded as being varied if the variation of the arrangement is only in connection with a replacement because of accidental damage or otherwise for reasons beyond the control of the parties.
Variation of an arrangement is also disregarded if the variation is in connection with an employee’s entitlement to statutory sick pay, statutory maternity pay, statutory adoption pay, statutory paternity pay or statutory shared parental pay.
We recommend that you take a close look at the guidance and please feedback whether this helps you with your particular situation. If the draft EIM guidance doesn’t fully answer your questions or provide enough clarification, please feed back to the Employment income policy team and the CIPP policy team always value hearing from members about their experiences via email@example.com.