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IN CONFIDENCE
Managing shortages at Audit (Traditional
Branches/NT Converters): Process and Policy
guidelines.
1. Introduction and background.
At times intervention will be required when an agent of a Traditional Contract has
failed in their execution of the contract and intervention is required by POL to rectify
this failure.
This process document provides guidance to Contract Advisors (CA) on the possible
options which are available to rectify failures in the operation of POL Traditional
Contracts.
It is not intended to provide the outcome or cover every scenario that may arise.
The process to be followed is detailed on the embedded document below; please make
sure that all of these documents are used in conjunction with one another when
managing cases.
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Trad Case Summary
Flowchart V2.6 1905:
2. Narrative to support decision making.
Box 1. Agreement Breach identified at branch.
At any time during the lifetime of the Agents Contract, POL
could identify a breach of this Contract that may result in
further action being taken by POL.
The breach could be identified to the CA in a number of ways
i.e. An audit, Branch Standards intervention, Contract Admin
Team etc.
Box 2. Is Suspension Warranted
The first thing the CA needs to do when a possible breach has
occurred is to identify the severity of the breach.
A sharepoint entry must be made under the office name. If there
is no existing file then a new one should be created.
Once the CA has established the severity of the breach they
need to consider whether a suspension is required. The CA
should gather as much information as possible in the time they
have to make a timely decision (Audit may be on site and
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awaiting a response),
The following criteria must all be considered along with any
other factors relevant to the case when making a suspension
decision:
(a) Risk to POL funds;
(b) Risk to POL brand or reputation;
(c)The source of any risk and if the risk can be mitigated ie.
whether the Operator or Subpostmaster himself is thought to
pose a risk, or whether the risk is limited to some or all of the
Assistants*.For example the Operator may have been
completely unaware of the circumstances leading to an
Escalation Event, perhaps because they were absent.
(d) Impact of suspension on customers and clients;
(e) If someone has suffered loss or damage as a result of the
suspected/confirmed breach, the identity of that injured party
i.e. whether damage is limited to POL, or whether customers or
clients have also been damaged;
(f) Whether the Agent has cooperated following discovery of
the Escalation Event including whether there has been any
attempt by the Agent to cover it up;
(g) Any relevant information provided by the Agent as part of
an informal discussion/ telephone conversation/ written
explanation. (It is for the Contract Advisor to exert their
judgement in each individual case to ascertain whether the
circumstances and reasons given are pertinent to the reasons for
suspension.)
The attached sheet should be used to assist in deciding the
course of action required.
Suspension Sheet to be inserted
Suspension is not normally required in most circumstances.
Box 3. Suspension Considered
If the CA feels that the breach is serious enough to warrant a
precautionary suspension, and where further investigation may
be prejudiced without that suspension. and / or where there is a
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significant asset and / or reputational risk.
The CA will need to send the Precautionary suspension
proforma to the appropriate ACDM with all the relevant
information. This can be done by phone if more appropriate and
timely
If suspension is not being considered after completion of the
attached proforma it should still be sent to the ACDM for
information.
If the ACDM does not respond within 1 hour then attempts
should be made to contact the alternative ACDM or Head of
Network Services for a decision.
Box4. Suspension Authorisation Decision
No further action can be taken by the CA until a decision has
been made confirmed by the ACDM
Box 5. Suspension Notification
If the suspension is authorised by the ACDM then the CA
should contact the operator and inform them of the suspension.
At this point the CA should ascertain the availability of the
premises for use by a temporary operator.
Note:-It may not always be the case that suspension will be the
result of audit. Go to box 7 if defund required.
Box 6. Temporary Spmr Process
Process/Policy to be added
The CA should then contact the temporary agent manager
(David Sears) and continue to follow the process.
Box 7. Defund
If there is no audit team on site then consideration should be
given to arranging an audit to coincide with the suspension.
This should be arranged via Network Support.
Box 8. Operator Suspension
The operator must be notified of the suspension immediately
and a suspension letter should sent out within 24 hours of the
suspension.
These letters should be saved to sharepoint where the office file
hould_he undated
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The completed suspension rationale must be sent to the ACDM.
and also saved to sharepoint.
CAT should be informed and an ABC form completed.
Sharepoint will contain a list of all relevant parties to be
notified of the suspension. : a
Temporary Debarment form should also be completed.
Box 9. Information collection
All relevant information pertinent to the breach should be
collated and analysed before a decision is made whether to
proceed with a charge letter.
To assist in the collation of this information the CA may if they
think it is required have a fact finding discussion with the
Agent. This discussion is not formal and should not be
recorded.
Following the thorough investigation and / or informal
discussion, it will be necessary to determine whether there has
been a breach in the contract that would result in a charge letter
being sent to the agent. A charge letter should only be
considered where the breach is such that only serious action is
suitable.
Box 10. Is Agent Suspended
If after a full investigation the CA decision is to proceed with a
charge letter then the CA must first check if the agent is
suspended before proceeding in sending out the charge letter.
Box 11. Precautionary Suspension
If the Agent is not suspended then the CA must first
Precautionary Suspend the Agent before proceeding with a
charge letter. The CA must go back to Box 3 and complete the
suspension process.
Box 12. Charge Letter
The CA sends a letter notifying the agent of the charges against
them, this should include reference to the appropriate section of
their contract. The letter will also confirm the RTU hearing
details ie. date (14 days from date of letter) and time and it will
also offer the agent the opportunity to respond to the charges in
the form of a written submission. (This should be received by
the date allocated for the RTU Hearing.)
The letter to the agent offers them the opportunity to bring a
“Friend” this must be in line with the latest “Friends at Work
Poliew?(ACCQ112 Friends Accamnanvine Oneratars Policw)
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which can be found on the Agents Contract an Policy Team
Sharepoint site. It also notifies them that the meeting will be
recorded.
Box 13. RTU/Written Submission
Before the RTU hearing takes place the agent may offer their
“Resignation To Avoid Termination”. If this happens proceed
to Box 18.
If the RTU proceeds then the CA should record this meeting in
line with “ACC0308 Producing interview notes using voice
recording equipment”, They should also check that any friend
present meet the criteria laid out in “ACCO112 Friends
Accompanying Operators Policy”
At the start of the RTU the CA should clarify that the Agent
understands charges and the purpose of the RTU Meeting.
Once the RTU has taken place or as written submission
received and before any further course of action is decided the
CA must have considered the following ten areas:
a) Impact and on-going risk to POL funds
b) Impact and on-going risk to POL brand and reputation
c) Effect of termination on customers
d) Effect of termination on the Agent
e) Any relevant information provided by the Agent
including any mitigation presented
f) Direct involvement or responsibility of the Agent in
the actions which led to the breach
g) Impact of the breach (as distinct from the proposed
termination) on customers, suppliers and partners
h) Identity of the injured party (if any) who has suffered
loss or damage as a result of the breach, and whether
this party is POL, customers or clients
i) Agent's history i.e. service length and record, previous
written directions/warnings etc.
j) Legal advice
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This information should all be considered before one of the
following four outcomes is decided:-
1:- Summary Termination
2:- Suspended Termination
3:- 3 Months’ Notice
4:- Reinstatement with Conditions
(Underperformance)
5:- No Further Action
The Contracts Advisor must show their detailed reasoning of
the evidential points and advice in (a) to (j) above and explain
why one outcome of (1) to (5) above had been preferred and
why others had been discounted.
There should be no ‘starting point’ in that consideration that
begins with one particular outcome as opposed to others, and
where one or more criteria had been ‘weighted’ the reasoning
for that needs to be made clear.
Box 14. ACDM Sign Off
The CA must submit their decision rationale to the ACDM. The
ACDM will confirm the course of action which will be taken by
the CA.
Box15. Decision To Terminate
If the decision of the CA is not to terminate then The CA
should proceed to Box 27.
If the decision of the CA is to terminate then the CA should
proceed to Box 16.
Box 16. Termination Type
The CA will have agreed the type of Contract Termination with
the ACDM and will proceed along the appropriate course of
action.
Box 17. Has Agent Resigned?
The CA must check with CAT to ensure that the Agent has not
resigned before a Termination letter is sent. Once the letter is
sent the Agent can no longer Resign To Avoid Termination.
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Box18. Summary Termination Letter
The correct Summary Termination letter must be sent out.
There are two letters available, one where the Agent has not
signed an NT Agreement and is operating a Traditional
Contract, and another which must be used if the Agent has
signed a NT Agreement (Convertor) but is still operating under
their Traditional Contract.
Box 19. Resignation to Avoid Termination
An Agent may resign at any time during the conduct process up
to the point of the Termination of Contract letter being sent by
the CA. The resignation should be acknowledged with letter 2B
and in line with The “Resignation To Avoid Termination
Policy” which is available on the Agents Contract and Policy
Team sharepoint site.
In all cases the resignation will be accepted without prejudice to
any rights or claims Post Office Ltd may have under the Agents
contract or in law. Furthermore, the same conditions and
consequences that apply in the case of terminations, will also
apply to the resigning Agent.
Box 20. Three Months’ Notice
Three Months’ Notice can be used by a CA to terminate an
Agents Contract. In conduct cases where an Agent has been
suspended this notice would normally be given in “Lieu” This
means the Agent would be paid three months remuneration but
would not be expected to be back operating the branch.
The Agent has no right of appeal to three months’ notice.
Box 21. Is Agent Appealing
Once an agent has been sent a Summary Termination Letter,
they have 14 days in which to register their intention to appeal
against the CA’s decision.
If the agent is not appealing go to box 25.
Box 22. Agent Appealing
If the Agent takes up their right of Appeal the CA must
acknowledge this with letter 2D, The Agent Appeals Manager
must be notified immediately, all documents and a transcript of
the RTU should be sent to the nominated appeals manager
within 5 days.
Box 23. Appeal Decision
Once the CA has been informed of the Appeals Managers
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decision they must inform the Agent of the Outcome.
Box 24. Appeal Decision Notification
The CA should send Letter 2D to the Agent informing them of
the outcome of the Appeal Decision.
Box25. Letter 2C
This letter should be sent as soon as it its known that the Agent
is not Appealing the termination decision.
Box 26. Suspended Termination
If suspended termination is considered in any case, legal advice
should always be taken (via email to the Agent Contract and Policy
Development Manager.) This is because there is a significant risk that
if other contractual action is not taken promptly, the right to terminate
for the breach may be lost and/or the breach may become accepted
under the contract as adequate performance for which no remedy is
available to POL.
Whilst immediate termination may be appropriate and/or necessary in
circumstances where there is a substantial risk to POL cash and stock,
the use of suspended termination may be appropriate in some
circumstances. Suspended termination would allow the Agent to
continue running the branch.
This approach should be used in exceptional circumstances and may
be considered appropriate where there is a clear breach of contract,
and an action or omission by the Agent does warrant immediate
termination but evidence is presented that suggests there is low
impact of the breach (as distinct from the proposed immediate
termination) on customers, suppliers, partners and low
culpability (e.g. absent Subpostmaster/Operator and Assistant
theft). In this instance, the CA should consider immediate
termination of the contract but suspend that termination for a
period of 12 months.
Furthermore, the Agent must comply with whatever conditions
the Contracts Advisor determines, be that attendance for re-
training, exclusion from a branch of named Assistants/managers
and/or improvements to internal monitoring processes. These
would not be designed as a punishment but as a means of
rectifying weaknesses without which risk to Post Office cash,
stock or reputation could continue. The Agent must agree not to
repeat the breach in question.
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If further breaches are committed in the 12 month period the
CA should assess the seriousness of the most recent breach in
isolation from the previous breach. If both breaches are of a
similar nature or if the second breach is itself a breach for
which the contract could be immediately terminated, the CA
and ACDM may decide to consider terminating the Agent's
contract with immediate effect. Legal advice should always be
sought before doing so.
If The Agent is terminated they would have right of appeal.
Box 27. Agent Reinstated
If the CA decision is to not proceed with a termination then the
CA should reinstate the Agent. A reinstatement letter should be
sent to confirm the Agents reinstatement.
Box 28. Underperformance Process
If further action is required then this should be notified to the
agent at the point of reinstatement and the case moved to the
Underperformance process Box 29.
Box 29. Underperformance Process
Move case to the Underperformance Process
Box 30. Case Closed
If the case is completed ensure all documentation is on
sharepoint and the case is closed.
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