Buy down hours

TheStrangler · Post by **TheStrangler** » 19 Dec 2017, 08:54

Do I have a "right" to buy down my hours or does it have to be negotiated locally?
Thinking of cutting my hours in half.
How is it worked out , what if I went ahead and then 6 months or a year later retired , would I have to pay back any money?
Thanks for any advice or pointers.

Post by **ihatedogs** » 19 Dec 2017, 14:28

In a word, no. A buy down is usually the result of an office revision where such an action will have been recognised as an opportunity to reduce hours at the office in question.
CWU has to agree before a buy down can go ahead.

Post by **britwrit** » 20 Dec 2017, 09:36

Yeah, it's a procedure that's done through the MTSF agreement. It's usually the last thing management wants to do, since they have to compensate you for these hours. And this can run into the thousands, depending on how long you've worked for RM.

On the other hand, depending on your office, you might be able to voluntarily decrease your contracted hours on an individual basis. You won't get paid for them, of course, and good luck at ever seeing them back.

TheStrangler · Post by **TheStrangler** » 21 Dec 2017, 10:35

Thanks , is there a formula for working out buy down hours , for example reducing hours by 50%?

Post by **POSTMAN** » 22 Dec 2017, 16:17

Managing the Surplus Policy - Appendix 4
Buy Down (hours) Policy

5.4 The Compensation Payment will be an amount equivalent to the compensation otherwise payable
to the employee in accordance with the Voluntary Redundancy Terms multiplied by A/B where

A = the employee's contracted hours immediately following the Buy Down and

B = the employee's contracted hours immediately prior to the Buy-Down

clashcityrocker · Post by **clashcityrocker** » 22 Dec 2017, 17:05

I think you also have to pay tax and NI on the sum.
RM paid half of it a few years back if I remember correctly.

rehabron · Post by **rehabron** » 28 Dec 2017, 13:02

TheStrangler wrote:Do I have a "right" to buy down my hours or does it have to be negotiated locally?
Thinking of cutting my hours in half.
How is it worked out , what if I went ahead and then 6 months or a year later retired , would I have to pay back any money?
Thanks for any advice or pointers.

The opportunity to buy down your contracted hours would be after an office revision and this results in a surplus of employees. Under the scrutiny of the union a preference exercise would be commenced from volunteers wishing to reduce their contracted hours on a seniority basis in an effort to accommodate the surplus.
If successful in receiving a " Buy Down" of hours and you leave the business within 2 years of receiving your compensatory amount you would be required to pay back part of your money received on a sliding scale within the 2 year band.
At one time the money was tax free but HMRC stepped in and required tax to be payable on the amount but it has been known for RM in order to get there office hours reduced to dangle a carrot and reach an arrangement to offset the tax payable so not to deter employees from wishing a " Buy Down".