A
as
Family Transfers
Reference information
POL00005840
POL00005840
Policy type Family Transfer
Ref
Date 30 October 2017
Status Cleared
Author Sarah Ryan
Owner Paul Inwood
Policy type Contractual
Version v.5 30" October 2017 [Updated to contain letter for use
authorisation I where the FT is on a traditional contract, to explain NT status
date of branch as transitionary local]
Review Date I 6 months after release date
Expiry Date I N/A
Key John Breeden, Stewart Swabey, Jason Collins, Richard Darby,
stakeholders I Keith Bridges, Ann Marie Woodcraft
Approval
Business Pete D Johnson (NT) 30.10.17
input
Assurance _I Paul Inwood 13.1.16
Authorised I Paul Inwood 13.1.16
Page 1 of 10
F2/95/1
POL00005840
POL00005840
SUBJECT: Family Transfers
1.0 Statement
Post Office Limited [POL] issued Agency Change Communiqué (ACC) 0111 in
2011 to advise how POL should deal with Family Transfers requests. That policy
remains relevant today, however this policy replaces ACC 0111 to include
provision for situations that may arise as part of the Network Transformation
Programme. This policy sets out some changes to the way that family members
are appointed and the different ways they are able to contract with POL.
2.0 Glossary of terms used in this Policy.
Word/term Definition
(Sub)Postmaster I An entity contracting with Post Office Ltd on a
Traditional Contract or New Model Agreement.
Appointment Post Office Ltd.’s process for considering the
Process application and business plan of potential Post Office
Postmasters.
Company A Local Post Office®, Main Post Office® Operator or
Operator an ULTRA Company Operated SPSO contracting with
Post Office Ltd as a company, including nationally
managed multiples.
Conditions of During the Appointment Process Post Office Ltd may
Appointment require the new Postmaster to make changes to the
premises, opening hours or enforce Post Office Ltd
policy before, at, or following appointment.
Divorce In this policy the term “Divorce” applies to marital,
non-marital and civil partnerships that have formally
ended.
HRSC Human Resources Service Centre.
Modelling The system that Post Office Ltd uses to determine the
most appropriate Operating Model to implement at a
given location.
Network A Government investment programme to modernise
Transformation I the network of Post Offices around the United
Kingdom, including the introduction of new Post
Office Operating Models.
Operating This term refers to the contract type that applies at
Models the branch and includes, but not is exclusive to SPSO,
MSPO, IFPO, CFPO, Local Post Office, Main Post
Office, Outreach.
Operator An individual, company or partnership responsible for
the operation of a Local, or Main PO branch.
F2/95/2
POL00005840
POL00005840
Traditional Contract for the operation of Post Office branches,
Contract excluding new model Local and Main Agreements.
Traditional contracts include: Postmasters Contract;
Community Postmasters Contract; Modified
Postmasters Contract; Franchise Agreement;
Franchise Independent Retailer Agreement; Satellite
contract; Outreach Agreements; Company Operated
Contract; Local Funded; PayStation Direct
Settlement; or Temporary SubPostmasters Contract
3.0 Introduction, purpose and scope.
There is no exhaustive list of what would necessitate a family transfer, but
generally it would be any circumstance which affects the Postmaster’s ability to
continue to be responsible for the Post Office branch.
It has been our practise, in certain cases, to allow branches to transfer to an
immediate family member without advertising the vacant position externally,
however, all other parts of the Appointment Process must still be fulfilled e.g.
credit checks etc. Postmasters have no right of assignment of the Post Office,
therefore any decision on family transfer will always be at the discretion of POL.
In such circumstances, POL expects the Postmaster to be able to demonstrate
that the transfer is of a non-commercial nature e.g. would not result in any
financial gain to either party. Further detail on this can be found in Section 8.0
Family transfers can only occur if the Operator is contracting with POL as an
individual. Family transfers do not apply to Postmasters who currently contract
with POL as a company or partnership.
4.0 Background and Policy
The family transfer concession is best summarised as a supportive gesture by
POL towards a Postmaster. A family transfer will often be associated with a
sudden crisis such as serious illness, but can also be a consequence of other
less traumatic circumstances, such as the Postmaster wishing to leave the
network.
Generally, POL will allow the Family Transfer to take place on the same terms
and contract/ operating model; however once POL have been advised of the
desire for a Family Transfer to take place, there must be a discussion with the
Head of Network Design (Kjetil Fuglestad) to discuss the future operating
model of the branch and whether it can transfer on the existing model. Proper
consideration should be given to the circumstances that have given cause for
F2/95/3
POL00005840
POL00005840
the request for a family transfer at this point when dealing with the request.
Where there has been a death in service, for example, POL should not seek to
impose a contract / model change. Discussions can then begin with the new
prospective Postmaster as to their options.
In cases where the current Operating Model is no longer available, or where
the potential new Postmaster indicates a wish to change to an NT operating
model, the case should be presented to the Head of Network Design (Kjetil
Fuglestad) and the Remuneration Development Manager (Chris Howard) to
determine the best options available and the solution going forward. The final
decision rests with the Head of Network Design.
If the incoming Postmaster wants to contract with POL as a company rather
than as an individual the company must be connected to the outgoing
Postmaster e.g. shareholders/directors are closely related to the Postmaster*.
*At least one director must be closely related to the Postmaster.
Examples of acceptable reasons for a family transfer request to be
made are:
Death of the Postmaster
Serious illness (normally the Postmaster, but they may wish to
care for a relative*).
Divorce - could also include the formal ending of marital, non-
marital and civil partnerships.
e The Postmaster chooses to retire.
*Evidence may be required and should be assessed on a case by case basis
by the Contract Advisor. The Head of Design may require a copy of any
evidence provided, the Contract Advisor should discuss this with the Head of
Design.
5.0 Criteria for judging suitability for a Family Transfer
Having received a request for a Family Transfer, the basic criteria for deciding
whether it would be appropriate to allow the concession remain as follows:
e The performance at the branch has been satisfactory.
° The entire premises including, any Mailwork facility, are
satisfactory and conveniently situated, enabling the branch to remain
‘on site’. (A BAU FCA should visit the premises to confirm this).
° The relative to whom it is proposed to transfer the appointment
is eligible, suitable and meets the requirements of POL’s Appointment
Process. A full application form should be completed by the new
F2/95/4
POL00005840
POL00005840
prospective Postmaster. All checks must be completed prior to their
appointment (eg credit, voter checks etc.)
6.0 Contract Suspension and Termination
If a Postmaster has had their contract terminated by POL; or a Postmaster has
resigned to avoid summary termination, or they have served notice to
terminate due to contractual action being taken by POL, then the Family
Transfer request should be rejected.
The resulting vacancy should be advertised through the usual channels
following POL’s Modelling and Advertisement processes. The Postmasters
family member(s) would then be able to apply in the usual manner and their
application would be judged on its own merits.
7.0 Eligible Family Members
POL has never sought to provide a definitive list of ‘eligible’ family members
that meet set criteria. Individual family circumstances differ widely and social
structures continue to change and evolve. We would therefore continue to
expect those dealing with requests from Postmasters to adopt a common
sense approach to the definition of a “close family member”. See 4.0 above in
relation to family members that wish to contract with POL as a company. (This
is only available to Postmasters on New Model contracts or those operating
under ULTRA contracts). Advice should be sought from legal services through
the Policy Team if clarification is required.
8.0 Commercial Arrangements
It is vital to remember that family transfers are not intended to apply if there
is a commercial arrangement between the incoming and outgoing Postmaster.
In the past there has been much confusion about what constitutes a
commercial transaction. As with other aspects of this type of case, it is not
possible to provide an absolute definition as the variation between the
individual circumstances of individual families are almost limitless. For
example, if a Postmaster is selling the premises/retail to a brother or cousin
is more likely to be a normal commercial transaction and so the application
should be processed as such; and not as a Family Transfer.
The most likely indicator of a commercial transaction would be that money
has been exchanged from one party to the other. However, there is a need to
exercise caution applying this test as in some cases movement of funds will be
a direct consequence of the circumstances that led to the request for a family
transfer. Some examples of situations which are likely to be acceptable are:
F2/95/5
POL00005840
POL00005840
« Death: There may be more than one beneficiary of the
deceased Postmaster’s estate and so, as one example, the
incoming Postmaster may need to “buy out” his / her siblings
interests in the property and business.
e Divorce: As part of the separation settlement, the parties
may need to split the assets and so the incoming Postmaster
may need to make some sort of payment to the outgoing
Postmaster.
e Retirement: A Postmaster who lives on the premises and who
is ‘retiring’ may have to sell the branch to their son/daughter
to realise their investment and move home.
9.0 Network Transformation and Family Transfers
Throughout the lifetime of the Network Transformation Programme there will
be occasions where a Family Transfer is requested by a Postmaster. It
remains POL policy that Family Transfer requests continue to be treated
sensitively and that the reasons for the request should continue to be
considered in line with the requirements of this policy.
In all cases the Network Transformation Team will continue to consider cases
for POL Investment and Network Transformation Leavers Payments in line
with Network Transformation policy and on a case by case basis; irrespective
of whether a Family Transfer has occurred. Equally, a Family Transfer would
not mean that the new Postmaster could avoid the normal choices in NT that
other Postmasters are faced with.
There are various scenarios prior to and after the Family Transfer, subject to
the requirements and desire of POL this could include:
Prior to the family transfer:
e Stay ‘as is’ on the existing SPMR contract
e Stay ‘as is’ on existing new model contract
e If on existing SPMR contract convert to new model contract [with NT
funding ]*
*It should be noted that subsequent to moving onto a new contract if
the new Postmaster fails the financial assessment or retail survey, they
may become a Transitional Local, NT SLT would make this decision.
After the family transfer:
e Stay ‘as-is’
F2/95/6
POL00005840
POL00005840
e Stay ‘as is’ and then leave the network, may be eligible for Leavers
payment, usual leaving conditions would apply e.g. finding suitable
applicant etc
e Affect a commercial transfer either as is or as a new model, subject to
POL’s decision, NT SLT would need to decide whether the Postmaster
can sell the business with the Post Office remaining ‘as is’ and whether
the buyer would be subject to Network Transformation.
For Post Offices that are on traditional contracts and are classed by NT as
‘transitionary locals’, and are remaining on the existing contract in an FT, the
letter embedded below should be used to explain the status / options available
to the new Postmaster, as any previous signing of a CRP by the ex-Postmaster
will not ‘flow through’ to the new Postmaster.
Care should be taken to ensure that the circumstances and outcomes
described in the embedded letter (still) apply to the site in question, by
checking with NT.
Family%20transfer%
200% 20traditional%:
9.1 Ways to contract
As already mentioned there are several ways that family members can
contract with POL, they are:
- Asan individual
- Asa company
- Asa partnership
* If the incoming Postmaster wants to contract with POL as a company rather
than as an individual the company must be connected to the exiting
Postmaster. (e.g. shareholders/directors must be closely related to the
Postmaster).
10.0 Personal Service
Post Office Postmasters are not employees of POL, and therefore a Postmaster
is not obliged to render personal service within the Post Office branch.
In the past there have been applications for Family Transfers being requested,
simply because the Postmaster did not actually work in the branch, but their
spouse, partner or other close relative did. It is imperative that we do not
F2/95/7
POL00005840
POL00005840
compromise the ‘office holder’ status of Subpostmasters and self-employed
status of Operators. We should not, therefore, seek to transfer the contract to
a family member simply because it appears to be more convenient to POL to
have a Postmaster working at the branch.
Equally, if we were approached by a Postmaster to transfer the office to a
family member for convenience sake, POL should refuse on the basis that they
are not required to render personal service.
11.0 Implementation procedures
The following paragraphs give some guidance on the practical application of
the policy.
11.1 Considering Requests
Firstly, the reason for the request must meet the broad criteria against which
any requests for a Family Transfer should be measured, these are set out
above. If the purpose for making the request is unclear, or seems outside the
factors outlined above, the Postmaster should be asked to further explain the
reasons behind the request.
Whilst a degree of flexibility is required, this policy should be adhered to.
There are many factors which could predicate a request that are not
immediately obvious. An example of this could be that a Postmaster wishes to
apply for a family transfer as a consequence of financial difficulties and/or
bankruptcy events (therefore the request should be rejected). Each case
should be investigated thoroughly before any decision is made. Once a
request has been made the Contracts Advisor should send out the Holding
Letter which can be found at the bottom of this document.
11. 2 Conditions of Appointment
If the reason for the Family Transfer is acceptable to POL, then the premises
and potential applicant can be considered using the criteria above. Assuming
that the premises, previous management of the branch and applicant are
acceptable, any offer of appointment may include Conditions of Appointment.
POL can use this opportunity to ensure that business policies are followed.
The Contract Advisor should consider setting any relevant Conditions of
Appointments subject to the normal parameters in place when setting
Conditions of Appointment. The appropriate letter at the bottom of this
document should be sent to both the Postmaster and the prospective
Postmaster (either the appointment letter or rejection letter).
F2/95/8
POL00005840
POL00005840
12.0 Premises and Third Party Arrangements
When considering a Family Transfer, it is important that the ownership and
control of the premise in which the Post Office branch and any associated
retail business is considered.
In ordinary circumstances it would be expected that the incoming Postmaster
would have full control of the premises, in order that they can discharge all of
the obligations contained in their contract. Where the outgoing Postmaster
has had control of the entire premises, we would expect the incoming
Postmaster to exert the same degree of control. As an example, it would not
be acceptable for one family member to be appointed as the Postmaster whilst
another assumed control of the premises or retail business.
In the event that the incoming Postmaster was proposing to continue an
existing third party arrangement, it is important that the Contract Advisor
understands its nature, and that it is made clear who has control of the
premises and that this is recorded in writing in the appointment papers.
Advice should be sought from Legal Services through the Policy Team if
clarification is required.
13.0 Process
The process for Family Transfers applications is already clearly defined within
the Appointment Process and should be referred to.
Where the family member that has been suggested has no previous
experience of working in the Post Office branch, the Contract Advisor should
ensure that the appointment process establishes that the candidate does
demonstrate the skills and experience required to run the branch in question.
If the candidate clearly is not suitable, POL should not make an offer of
appointment.
14.0 Standard letters and documents
Holding letter from POL to Postmaster confirming receipt of application to transfer
Letter from POL agreement to FT
Letter from POL rejecting FT
Related policies
F2/95/9
POL00005840
POL00005840
This section details policies that may be related to the information provided in this
policy. This is not an exhaustive list and consideration should be given to other
policies that may apply.
Death In Service Policy
Advertising Vacancies
Appointment Process
F2/95/10