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POST
OFFICE
MANAGING
AGENTS
CONTRACTS
SLIVY@LNOD SLNTDy SNISVNVIN
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Managing Agents Contracts
Guidelines for the Line Manager
Copyright © 2001 Post Office Network
Version 3
Acknowledgments
‘This guide was prepared by Post Office Network
Personnel Policy Development Team,
We would like to thank everyone who made a
contribution to the content of this booklet
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Feedback
In using this booklet I found it
a) extremely useful
b) helpful
©) some use, but not a lot
0OoO00
4) of no help whatsoever
Comments
Return To:
Kenny Sharp
Agency Contract Deployment Manager
Post Office Network
‘The Athenaeum
Nelson Mandela Place
GLASGOW
G2 1BT
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Contents I I
Page I
Personal Information I
‘Telephone Numbers I
Introduction i
I
1. Our Organisation 1
Our Mission 1,
Our Vision 2!
Building on Our Vision 4
Post Office Management Model sI
Types of Post Office 7
Usefull Facts About PON 8
Communication Channels 9)
2, Recruitment u
Subpostmasters Appointment Procedure 11
Recruitment Process 19 I
The Contract 20 I I
Income Tax, National Insurance and VAT 21 I I
Status of Subpostmasters 25 I
The Partnership Management Team 27 I
3, Training 29
4, Remuneration 31 I I
Scale Payment Sub Post Offices 31) I
Community/Restricted Offices 36 I I
Modified Contract Offices (MSPOs) 36! I
Company Franchise Post Offices (CFPOs) 37 I I
Independent Franchise Offices (IFPOs) 37 I
Co me82¢8 $A a
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5. Contractual Terms 39
Contractual Terms Guidelines 39
Franchise Post Offices (IFPOs and CFPOs) 41
Modified Contract Sub Post Offices
(MSPOs) 43
Scale Payment Sub Post Offices (SPSOs) 45
Community and Restricted Hours Offices 47
Prohibited Activities 48
6. Responsibilities 49
Network Outlet Review 49
Network Outlet Review Diagram 50
Network Audit 51
Counters Club 54
Mailwork Responsibilities 55
Horizon 37
Network Equipment 59
Retail Advisors 60
7. Corrective Action 63
Contract Application Guidelines 63
Suspension/‘Termination Flowchart 75
‘Three Months Notice Flowchart 7
Terms to be Avoided 79
8. Health and Safety 81
Health and Safety Responsibilities 81
Health and Safety Inspections 82
Disability Discrimination Act 1995 83
9. Glossary 85
contents
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Other Important
Telephone Numbers
Service Centre Helpline
Personnel Advisor Team
Horizon System Helpdesk
Non Horizon Office i
Helpdesk
Customer Helpdesk
(English Speaking)
Customer Helpdesk
(Welsh Speaking)
‘Telephone Numbers
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‘Managing Agents Contracts
Introduction.
Welcome to the Line Manager's handbook providing
guidelines on Managing Agents Contracts.
‘This handbook has been designed to provide you
with a guide to managing the contracts of our
agents, It covers areas such as: i
+ Recruitment procedure
+ Responsibilities (Agents + Post Office
Network)
. Corrective action
+ Horizon ~ responsibilities
+ Remuneration including Tax and National I
Insurance I
+ Disability Discrimination Act (DDA) —
responsibilities.
It is not intended to be an authority on any subject
but a means of giving you a summary of the
procedures and a quick reference to where you can
find more information,
The handhook is yours to keep and has been }
produced in pocket-book size so that you can keep I
it with you for reference, when necessary, during
working hours.
Introduction
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We hope you find the handbook usefull and
beneficial to your work. If you have any questions
about the day to day management of agents’
contracts, you should contact either your Territorial
Personnel Advisor Teams (Agents) or your Retail
Line Contract Manager.
Should you have any comments about the guide or
any suggested improvements for future editions,
please complete the feedback form at the front of
the booklet and return to the address shown.
Introduction
Managing Agents Contracts
Our Mission
To be the UK’s number one
choice for the important
business of everyday life.
Our Mission is a clear statement of our business
direction. It describes what we want to be and
provides the focus for our commercial strategy, our
business objectives and our personal objectives,
‘We believe that our new Mission is right for our
view of the future. Achieving it will ensure that we
remain successful as the pace of technological
change quickens and as our customers and clients
become more demanding
(Our Organisation ————————___——__ 1
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‘Managing Agents Contes
Our Vision. :
‘To be the UK's most trusted and used:
+ access point for official information and ‘
transactions
+ provider of transactions and specialist advice
on all aspects of Post Office mail and
distribution activities (
. wholesale cash distributor
+ access point for cash deposits and withdrawals
on behalf of many banks.
Our Vision is about the important things that are
part of everyday life: dealing with government;
sending letters and parcels; and collecting and
depositing cash.
‘To compete successfully we need to be very clear
about what we are and what we offer our customers
and clients. The elements of our Vision come I
together to give us this clear direction.
‘This clarity will eliminate the confusion of trying to
focus on many diverse products and services at once
and will make it easier for customers to understand
what we have to offer.
20. 0ur Organisation
Maneging Agents Contacts
‘The Vision builds on our strengths:
+ our unique nationwide presence
* our unique position of trust with our
customers, and
+ our unique ability to provide complex services
for clients,
Our Vision focuses on the areas where it makes
sense for us to direct our energies and where the
biggest opportunities exist for us in the future.
Our Vision will not be delivered overnight but will
be developed over the coming years. In parallel we
will develop our Business so itis fit for the Vision
and our future success.
Our Organisation ——_—
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Building on Our Vision ;
Our new plan builds on the Vision and updates it to I
reflect our new circumstances following the
publication of the Governments PIU report, It / I
provides greater clarity about how we will achieve I
our Mission to become "The UX's number one
choice for the important business of everyday life". I
We will achieve this by developing new products
and services, including:
+ Universal Banking services
+ Network Banking I
+ Stakeholder Pensions
+ Travel and ticketing services
+ Bill payments
+ Government General Practitioner services
+ Home Shopping and Internet Shopping
I
+ Internet Learning Access Points I
collection and payment services. I
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Post Office Management Model
‘The Post Office Management Model (POMM) is
about a way of working, and represents the way we:
* set our business direction (Setting Direction)
* deploy that direction to everyone to ensure
understanding (Deploying Direction)
* manage our performance of the actions we
need to take in order to achieve it (Managing
Direction).
Setting Direction
Our Strategic Direction represents the ‘routemap’ for
achieving our Vision and typically covers the next
three to five years. It is defined in terms of three
stakeholder goals:
+ customer
+ employee
. shareholder,
The early stages of POMM are concerned with input
to, and then the definition of, our direction.
mS
(Our Organisation
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Deploying Direction
(Our strategic direction must be deployed to all our
people who input to setting direction, so that they
can build the necessary targets into their plans,
based on the understanding of capability.
POMM expects scorecard owners to agree their
plans with their teams and line managers, and to
(ake personal accountability for managing and
delivering the plan.
Managing Direction
Plans are implemented and then regularly reviewed
by the team and scorecard owner, with corrective
actions put in place if necessary.
Performance management is bottom up, enabling
appropriate decisions to be made about
performance by the right people at all levels.
POMM replaces the old Business Planning, Objective
Setting and Performance Review Processes. Now
each Business unit follows the same principles and
process, although they may customise some
elements of it. This enables us to plan and co-
ordinate activities across the Post Office as one
complete unit, rather than lots of separate
businesses.
Our Organisation
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‘Types of Post Office j
Company A post office within a store I
Franchised of a major retail chain eg I I
Post Office (CFPO) I Woolworth’s or'Tesco.
Independent Similar to the CFPO but for I I
Franchised an ‘independent’ retailer I
Post Office with a vibrant business.
(EPO) i
Modified Sub Post office run by an i
Post Office independent retailer on our
(spo) behalf. Whilst this type of
post office will remain a
part of our network, there
will be no further
additions.
I
Scale A post office run by an i 7
Payment Sub agent often alongside a I
Post Office private retail business,
(SPSO) I
Community Agency where limited I I
and post office services are i
Restricted offered in a remote rural
Hours Office area for limited hours. H
Our Organisation 7
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Useful Facts About PON I
PON turnover £1.2 billion
Approximately 18,100 post offices ‘
Serving 28,000,000 customers a week
Offers over 170 products and services {
———__— Our Organisation
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Communication Channels I
Within Post Office Network there are various
communication channels for the agency network,
the purpose of which is to provide Subpostmasters
with the necessary information to complete their
roles effectively.
Detailed below are the communication vehicles
carrently offered:
Counter News
Issued weekly to all post offices, this
communication provides updates on all transactional
and accounting procedural changes. Occasionally
supplements, called Workaids, are issued which I
cover new transactions. I
Courier
This vehicle is sent to all staff and Subpostmasters I
and covers all business issues, new initiatives, people
issues and good news stories.
Your Business I
‘This provides retail and business issues which relate
to Subpostmasters and help to spread best practice.
Our Organisation —
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Managing Agents Contraets —————______
The future communication vehicles may consist)
one or all of the following, in addition to the above:
Focus
An area publication directed at each Head of Rei
Network area. This publication will include local
performance ~ reporting and issues; sharing best I
practice; people news; competitor news and sales I
through service news. I
Your Network I
Similar to Focus, although on a wider scale, taking I
“account of the Territory. I
Small Group Meetings I
This will be an opportunity to discuss issues, on a I
face to face basis, with the Head of Retail Network I
area staff and senior managers I I
10 Our Organisation I
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Subpostmasters
Appointment Procedure
The shaded boxes in the following flowchart are
activities carried out by the Service Centre. I
1, When an outgoing Subpostmaster submits
their resignation the Line Manager should
consider the options for the future of the
business and forward instructions to the I
Service Centre, who will undertake to:
a) produce a letter to acknowledge
acceptance of resignation of outgoing
Subpostmaster
b) advertise the vacancy at the same :
location at which it is currently sited, or
if the office is to be relocated, advertise
to suit.
©) _ attend to enquiries and process
completed application forms,
4) check, if appropriate, any Business Plans
for completeness. \
2. As part of the Pre-resignation Interview, Line
Managers should determine any special I
features/conditions of appointment, which
need to be taken into consideration for the
incoming Subpostmaster. The Service Centre,
as well as the outgoing Subpostmaster, should
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be informed, as this may affect the asking I
price expected for the sale of the business.
Post Office Network's Conditions of
Appointment policy must be adhered to, The
principles of these are: I
+ they need to be for the benefit of the : j
customer I
+ they need to be relevant
+ they need to be reasonable
+ they need to be affordable.
3. _ If Mailwork Supervision is undertaken at the
post office a Service Delivery Manager can be
present at the interview. Their role is to
explain to the Subpostmaster what their
operational responsibilities will be.
4. It is advisable to have two representatives from
Post Office Network present at the interview,
particularly in the case of larger post offices. i
‘The interview documentation should be
comprehensively completed after the interview.
Itis important to remember that the partnership
between Post Office Network and the new
Subpostmaster begins at the recruitment stage, by
selecting people who have the personal qualities to
match the requirements of the job.
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Unayoidable Closures
‘The Post Office is committed to meeting the
Government's aim of avoiding the closure of rural
post offices wherever it is possible to do so.
‘The following process will be deployed by Post
Office Network to seck to achieve these aims.
Stage 1 — Normal Commercial Transfers
of Rural Sub Post Offices
When a Subpostmaster resigns (or has their contract
terminated), the objective is to maintain that post
office, either within the same premises or at a
nearby location.
In most cases, the normal operation of the market
will result in the vacancy being filled, particularly if
the potential future income streams look attractive
to an incoming Subpostmaster.
The first option is to encourage normal commercial
transfers of post offices which maintain standards of
service to customers. This involves advertising of
the vacancy in the locality, as well as considering
any potential candidates that the ongoing
Subpostmaster, or any transfer agent working on
his/her behalf, has identified.
‘To assist this process we will direct prospective
applicants towards relevant sources of advice and
assistance (e.g, local government, retail advice, etc.).
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Managing Agents Contracts
If the normal commercial processes do not yield a
suitable candidate, then Post Office Network will
systematically undertake the following actions to
avoid a closure.
Stage 2 — No Suitable Prospective
Appointees Identified
Where there are no suitable candidates applying for
the vacancy, the Post Office will:
+ advise Parish Councils, relevant land
authorities, Council for Postal Service,
National Federation of Sub Postmasters, and
any other known local interest groups that a
vacancy exists, and the normal commercial
mechanisms of transfer have not found a
suitable candidate
+ seek any suggested candidates those bodies
might be aware of
+ advertise the vacancy widely around the local
community. This will include but not be
restricted to local doctors, public houses, local
press, churches etc.
+ ensure that the office is on any lists of office
vacancies circulated nationally to candidates
looking for post offices
+ consider whether a reduction of opening
hours might attract applicants
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* contact nearby Subpostmasters to see if they
are prepared to run a post office in that
community.
Stage 3 — No Candidate For Post Office
In Current Form — Alternative Service
Provision
Im the absence of a successful outcome to Stage 2,
we will establish whether a nearby Subpostmaster is
able and willing to provide a part time service in the
community in which the vacancy exists, e.g. a
‘satellite’ or ‘twinned’ Post Office. We will facilitate
this by working with the community to identify a
suitable location and will undertake appropriate
assessments to establish that such a service can be
provided safely
Stage 4— Unable To Fill Vacancy —
Notification To Interested Parties And
Final Check
Ifno candidate emerges from the previous 3 Stages,
then Post Office Network will inform the same
groups as at Stage 2 of what has been done to seek
to fill the vacancy and provide information as set
out in the Code of Practice. These local bodies will
be given a further, final opportunity to identify a
candidate ox, as a last resort, a group of volunteers
willing to provide the service collectively, for which
a simplified form of contract will be provided.
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Managing Agents Conteaets I
If this final notification to local representative
groups still does not yield a solution, we will have i
to accept that the closure is unavoidable at that time.
Stage 5— Review Of Closure After 12 {
Months
If during the year after the closure a party comes I
forward with a practical solution the post office will
re-open
In all cases, twelve months afier the closure date,
PONU will re-assess the situation in the locality to I
establish if there has been any material change since I
the original attempts to find a candidate. The i
representative bodies will be asked whether they are
aware of any material changes that could yield a
candidate, I
Ifa potential candidate is found then the filling of i
the vacancy can proceed. If not, the unavoidability
of the closure will be accepted. However it may be I
the case that a party presents a solution i
subsequently, In such a case the Post Office will still i
review the situation on its merits.
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Comment I
Post Office Network will maintain records of the
activities undertaken to seek to avoid a closure in
every case. The Stages I to 5 will be followed in i
general sequential order, but if a clear opportunity
arises to maintain service and continuity by
considering an option from a stage outside this
sequential order ~ that opportunity will be I
considered, I
We will also endeavour to progress through these I I
stages during the notice period of the outgoing
Subpostmaster, and will seek to persuade the i
outgoing Subpostmaster to extend their notice
period if necessary, However, it may be the case that I
the office will have to close whilst PONU is. I
progressing through the stages outlined above.
Conclusion
The above arrangements represent a far-reaching
process to maintain the rural network of post
offices. They develop existing processes, help ensure
consistency and specify greater activity in working I
with local representative bodies to find solutions.
The Post Office is taking a proactive approach to.
practical solutions such as ‘satellite/twinned’ post I
offices operated by a nearby Subpostmaster and is
also providing a mechanism which would allow
local voluntary groups to operate a service.
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imunMDTy
SPMR indicates he
wishes to leave
PON
SPMR advised to discuss future of post office with
Line Manager at Pre-Resignation Interview
Tine Manager assesses options for location of post office
and informs Agency Recruitment at HR Service Centre
I
Avoiding Closure
‘No Suitable Candidate Realised
[Stage Two}
Stage One
‘No Candidate for Post Office In
Current Form [Stage Three]
1
ssaoorg TEU MDey
Retain On Site
Unable o Hil Vacancy
[Stage Four]
ee
Review Of Closure [Stage Five]
Relocate
I
Advertise Existing Premises
‘Advertise For New Premises
SPMA puts forward Potential
Candidates
[
Application Forms sent to
G
Se Sane
Completed Applications & Business
Pan if app. returned wo Service Cente
I
References checked - Personal,
Financial and POSIS
Interview
Suitable Candidate Identified
Contract Offered
vonnugg sib BayBoumpy
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UREN TUDAY
SPMR advised to discuss future of post office with
Line Manager at Pre-Resignation Interview
I
Tine Manager assesses options for location of pox office
and informs Agency Recruitment at HR Service Ceatre
No Suitable Candidate Realised
[Stage Two]
ae
No Candidate for Post Office In
Current Form [Stage Three]
[
‘Unable To Fil Vacancy
[stage Four]
Review Of Closure [Stage Five]
l
Avoiding Closure
Stage One
ssav0ig JUVUDIM.DeY
Retain On Site
Relocate
[
Advertise Existing Premises
Advertise For New Premises
I
SPMR puts forward Potential
Candidates
Application Forms sent to
Candidates
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The Contract : I
‘This page considers important aspects of a
Subpostmaster’s contractual conditions and i
obligations, The main operational points are:
+ the status as an agent not an employee
+ to provide and maintain reasonable post office
accommodation which supports Setting The
Standard
+ to pay any assistants at his/her own expense
+ to accept full responsibility for the running of I
the post office, although he/she is not obliged
to attend personally
+ to be prepared to take on any new business
when requested
+ to be prepared to lose services when they are
altered or withdrawn
+ not to expect a pension or paid annual/sick
leave
+ not entitled to pass on any preferential
consideration with Post Office Network to any (
buyer of his/her private business premises.
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Managing Agents Contracts
Income Tax, National Insurance
and Value Added Tax
Introduction and Disclaimer
‘This guide is intended to inform Line Managers of
the information given by PON to Subpostmasters in
the complex area of taxation involving income tax,
national insurance contributions (NICs) and value
added tax (VAT). It is based on the experience of
Post Office Counters Ltd over a number of years.
However, it is not a substitute for proper
professional tax advice, Subpostmasters are strongly
recommended to seek independent advice from a
lawyer, accountant, or similar professional advisor.
Post Office Network does not guarantee the
accuracy of the information provided in this guide,
nor that the views expressed are necessarily up to
date. The interpretation of tax law in each case is
ultimately a matter for the courts and the relevant
government agency, and is not a matter for Post
Office Network. No liability is accepted by Post
Office Network for the content of this guide nor for
its applicability in any individual case.
Income Tax
Subpostmasters are not employees, as defined under
employment law, but are instead independent
contractors operating under a contract for services
with Post Office Counters Ltd. However, the Inland
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Revenue regard Subpostmasters as "employed
earners by virtue of being office holders with
emoluments chargeable to tax under schedule B". As
‘employed earners’, Subpostmasters are treated in
very much the same way as employees when it
comes to tax and national insurance contributions.
With respect to tax, this means that every
Subpostmaster is liable for the direct deduction of
income tax from his or her remuneration via the
PAYE system, However, many Subpostmasters also
run a private business on their premises and most of
these are able to secure the Inland Revenue's
agreement to having their post office remuneration
and their income from the private business
amalgamated and assessed for tax annually under
schedule D. It is for the Subpostmaster to seek this
concession from his or her own Inland Revenue
office. Post Office Network has a legal obligation to
deduct tax at source unless notified in writing by
the Inland Revenue that an NT coding (no tax
deducted) may be applied.
National Insurance Contributions
(NICs)
With respect to national insurance contributions,
the classification of Subpostmasters as ‘employed
earners’ means that they are liable for primary Class
1 contributions on their assessable remuneration
between the lower and upper earnings limit. Post
Office Network is liable for secondary Class 1
contributions on remuneration. Primary Class 1
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contributions are deducted from remuneration at
source for all Subpostmasters (regardless of whether
they are assessed for tax under schedule B or D)
unless their own particular circumstances argue
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otherwise ~ two examples of exceptions might be a)
if they have reached state pensionable age and are
no longer liable for national insurance I
contributions, or, b) if they pay the maximum,
national insurance contributions via another :
employment. i
‘The Inland Revenue recognise that Subpostmasters
incur expenses in running their sub post offices, \
and they accept that such expenses should be
discounted from remuneration that is assessable for
national insurance contributions, For example, a I
Subpostmaster with annual gross remuneration of
£20,000 who incurs £5000 in running costs, would I
only have Class 1 national insurance contributions
assessed on £15,000, For most scale payment \
Subpostmasters we have implemented two simple
systems for achieving this discounting of expenses.
One system is for the expenses incurred by the
Subpostmaster in employing his or her own staff for I
the post office. The other is for non-staff costs
related to the post office (things like rent, rates, I
maintenance etc). Both systems are designed to be I
easy to operate and to require the minimum
information from the Subpostmaster. Further details
are given upon appointment, but it should be noted
that provision of the necessary information to Post
Office Network is a contractual requirement upon I
the Subpostmaster.
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Value Added Tax (VAT)
HM Customs & Excise view Subpostmasters in much
the same way as the Inland Revenue, which is as
akin to being employees for value added tax
purposes. This means that Subpostmasters’ - I
remuneration is outside the scope of value added
tax, and that any input value added tax incurred by
the Subpostmaster on expenditure related solely t0
the post office (or apportioned to it, if part
expenditure related to the private business as well)
cannot be recovered.
Some Subpostmasters like to set up partnerships or I
small limited companies into which their ' I
remuneration might be paid, because there could be
overall tax advantages to such an arrangement. This
does not affect the principle of a single named
individual as the holder of the sub post office
contract, and so is of no concern to Post Office
Network. A possible consequence of such an
arrangement, however, might be that staff who
work in the post office are employed by the
company or partnership. Should that be the case, it! I
is likely that HM Customs & Excise would regard the I
supply of staff by the company or partnership to the
Subpostmaster as being subject to value added tax at I
the standard rate, In view of the comments in the
above paragraph, any such value added tax would
not be recoverable by the Subpostmaster.
Professional advice on the optimum configuration
of a Subpostmaster’s business arrangements, to suit
their own particular circumstances, is strongly
recommended. ‘
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Status of Subpostmasters
which determine the status of an independent
i
‘There are some legal definitions/requirements I
contractor (e.g, Subpostmaster) I
1. Control
‘Supervision’ must be at arms length, to avoid
any suggestion of control over the agents’
independent managerial function, i
2. Premises
A Subpostmaster is responsible for providing
his/her own premises, Post Office Network
only provide a number of basic items which
are essential for the efficient running of the
post office and cannot reasonably be obtained
elsewhere. I I
3. Personal Services
Subpostmasters are not obliged to attend the
office personally. However they are required to
ensure a satisfactory standard of service is
given to customers.
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Subpostmasters are personally obliged to make
good any losses or deficiencies, although in
some circumstances sympathetic consideration
may be given. For further advice on this
matter, please contact the Territorial Personnel
Support Manager (Agents) or your Retail Line
Contract Manager.
I
4, -Responsibility
5. Assistants '
Subpostmasters must employ their own staff
(assistants), where appropriate and are
responsible for every aspect of their (the
assistants’) contract. The Line Manager is there
to advise on the anticipated number of
assistants, which would ensure customer
waiting time is kept to the minimum,
Subpostmasters are not ‘employees’ of Post Office I
Network, nor the Post Office. They enter into a
commercial contract with us to do business, and
both Parties to that contract, i.e. Post Office Network
and the Subpostmaster, must abide by that contract,
while it is in force.
More details are contained in the section on
Responsibilities and Remuneration. i
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The Partnership Management Team. I
‘The Partnership Management Team manages the
head office relationship between Post Office
Network and over 70 retail partners, (these are in
the main operators of CFPOs). : I
Currently there are 218 CFPOs, in addition there are
a further 41 JEPOs. We also centrally manage the 8
major Multiples, who operate over 1,000 post
offices across all contract types.
Our main purpose is:
To establish and deploy a consistent approach in the
management of our partners.
‘To build productive commercial relationships.
“To ensure Post Office Network's interests are
protected.
Our responsibilities are: I
Branch Office conversions I
Performance and Standards I
Provide a conduit for unresolved escalated
operational issues
Contractual interpretation
Fitout requirements
‘Training obligations i
Joint Venture signing
Fee determination and screening relating to all
office appointments
Issuing of Franchise Agreements and Contract
renewals.
Recruitment —————————_—______—— 27
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Managing Agents Contracts
Training
New Subpostmaster ‘Training Provision
For new Subpostmasters there is a standard on-site
training package which is flexibly delivered based
on the needs of the individual, Generally this lasts
for approximately two weeks and covers the
transactions and products offered within the Post I
Office, as well as customer service techniques and
daily and weekly accounting procedures. This is
supported by:
+ pre-transfer training (face to face or distance
learning). This can be either a 1 or 2 day
session, focusing on giving the Subpostmaster
an overview of the live training support and
key business initiatives
+ follow-up balances.
‘Training is key to maximising the contribution that
Subpostmasters make to the Business, You can help
support this by:
+ encouraging Subpostmasters to evaluate
training by participating in the assessment
process
+ incorporating thé outcome of post office
reviews into action plans to isiclude training
and development activities I
‘Training 29
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Managing Agents Contacts erent I
Ongoing Training ;
To provide support for ongoing training there are
various workbooks available to Subpostmasters and
assistants. These workbooks are a visual aid which I
teaches them how to complete most transactions. I
Subpostmasters and assistants should also be
encouraged to attend local training events on
product knowledge or new product launches.
As there are always new products and procedures
that everyone needs to know about, these can be
supported by ensuring that all Subpostmasters and
assistants have access to relevant material, such as
the Counters Operations Manual and Counter News.
General :
A ‘Resourcing Guide’ has been sent to all
Subpostmasters which provides information on the I
recruitment and training of their assistants. i
30° ——____-________—— tnining
I
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Managing Agents Contacts
Scale Payment Sub Post Offices
‘There are two types of remuneration paid to Scale I
Payment Sub Post Offices. The difference is based on
the remuneration that they receive.
1. Scale (Monthly)
For offices with an annual remuneration of £14,000
or above per annum, the remuneration that is
received is assessed on a monthly basis and
therefore fluctuates monthly, both with the length of
the transaction month, as well as the level of
business transacted at the office. These types of
offices are known as Scale (Monthly).
For a Subpostmaster appointed at a Scale Monthly
office, the remuneration is made up of two parts:
+ an Assigned Office Payment
+ Product Payments.
‘The Assigned Office Payment (AOP)
‘The Assigned Office Payment, which varies from
post office to post office, is a stable payment, which
is not affected by future changes in the amount of
post office business handled at the office. It is set for
a post office and is paid in twelve equal monthly
instalments. Any change to the overall level of
Assigned Office Payments is reviewed and
negotiated between Post Office Network and the
National Federation Of Subpostmasters (NFSP) on a
national network basis.
Remuneration, ———————_______—_ 31
Managing Agents Contracts
‘The Product Payment (PP)
Product Payments are made on the amount of post
office business transacted in the post office,
generally on a ‘pence per transaction’ basis. The
amount paid reflects the time required to process
the transaction and the income that Post Office
Network receives from the client, e.g. a Rod Licence
is currently worth 39.6p and a Postal Order is worth
7.0p.
Bach time the Subpostmaster carries out a
transaction, the number of transactions is multiplied
by the rate of the transaction (pence), which is
added to their remuneration. The Product Payment is
generally made two months in arrears (c.g, the
Product Payments for March will reflect the business
transacted in January).
2. Scale (Annual)
Generally for offices with an annual remuneration
below £14,000 per annum, their remuneration is
calculated annually with one twelfth being paid
each month. These types of offices are known as
Scale (Annual)
As per the Scale Monthly Office, the remuneration is
made up in two parts:
: an Assigned Office Payment
: Product Payments. ‘
32. Remuneration
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‘Manoging Agents Contacts
‘The Assigned Office Payment (AOP)
The same rules apply for the Assigned Office
Payment for the Scale Annual Office as they do for
the Scale Monthly.
‘The Product Payment (PP)
As is the case with the Scale Monthly office, Product
Payments are made on the amount of post office
business transacted in the post office, generally on a
‘pence per transaction’ basis. The amount paid
reflects the time required to process the transaction
and the income that Post Office Network receives
from the client. e.g. a Rod Licence is currently worth
39.6p and a Postal Order is worth 7.0p.
For Scale Annual Subpostmasters, the total number
of transactions that are carried out in a twelve
month period are assessed. For cach individual
product the annual number of transactions are
multiplied by the rate of the transaction (pence),
which are added to the Assigned Office Payment.
Remuneration, ———-_——_________ 33
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‘Managing Agen Contracts
‘The table below shows the 12 month period used to *
calculate the agents’ remuneration,
Date on which 12 Month Period used:
revision due
T January ‘Year Ended I 30 September
the preceding
1 February Year Ended {30 September
the preceding
1 March ‘Year Ended 31 December I
the preceding
T April ~ {Year Ended I 31 December
the preceding
1 May ~IYear Ended [31 December
the preceding
1 June ‘Year Ended 31 March
the preceding
i july I Year Ended [31 March
the preceding
1 August Year Ended 31 March I
the preceding !
1 September ‘Year Ended 30 June
the preceding :
T October Year Ended I 30 June
the preceding
1 November Year Ended [30 june
_ the preceding
1 December ‘Year Ended 30 September
_ the preceding (
4 —-. Remnnnerrtion
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Managing Agents Contacts
Individual Transaction Payments will be subject to
review and any changes will be negotiated between
Post Office Network and the National Federation of
Subpostmasters. The same rate of payment is made
to the Scale Annual and the Scale Monthly Office. I
Additional Payments I
Holiday substitution, Sick substitution, Maternity I
and Telephone Allowances are also paid to i
Subpostmasters. These are only given to Scale I
Annual, Scale Monthly, Community Restricted I
Opening and Minimum Payment offices,
Remuneration. —————-——_ 35
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Manoging Agents Contacts
Community/Restricted Offices \ I
I
‘These are small post offices, usually in rural areas,
and are open for just a few hours each week. Their
remuneration is made up of two elements:
(1) Assigned Office Payment (AOP); (2) Annual
Hourly Payment. The AOP varies depending upon
the level of post office business transacted at the
time the post office moved to Community/
Restricted status. {
Information regarding agents remuneration is
available from your Territorial Personnel Support
Manager (Agents)
Modified Contract Offices I
(MSPOs) I
‘The remuneration arrangements for MSPOs are 1 I
similar to SPSOs. The remuneration is made up of a I I
Core Payment and Product Payments. I i
Core Payment
The core payment is the same for every MSPO.
‘The product payments for MSPOs are assessed
monthly and are paid three months in arrears,
ie, December transactions will be paid in the March
Product Payments / i
remuneration. \ I
36 —
I
i
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‘Managing Agents Contracts
MSPOs do not qualify for Holiday substitution, Sick
substitution, Maternity and Telephone allowances. I
Company Franchise Post Offices I
(CFPOs) I
‘Company Franchise Post Offices are paid for the
total amount of Product Payments plus VAT per I
month. I
Product Payments are made on the amount of post
office business transacted in the post office, I
generally on a ‘pence per transaction’ basis, Product
Payments are made two months in arrears.
Independent Franchise Offices I
(IFPOs)
IEPO Subpostmasters’ remuneration is made up of I
two elements: I
+ Product Payments
. Variable Premiums.
Product Payments are made two months in arrears.
Variable premiums are based on a percentage of the I I
monthly Product Payments.
Remuneration —§ 37,
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——— Managing Agents Contrats
Contractual Terms Guidelines
‘The different types of agent as identified in the I I
section ‘Our Organisation’ have variations in their
contracts.
This section aims to highlight some of the key areas I
of the contracts that may be usefull to you
Full details of the contracts can be obtained from
the Territorial Personnel Support Manager (Agents)
or the Retail Line Contract Manager. i I
It is advisable to check with them before passing on I
any contractual information. I
Contractual Terms ——___________ 39 I
Franchise Post Offices (IFPOs and CFPOs)
usiness ~ 5 year term with renewal rights, Renewal to be signed 12 months before expiry of current agreement.
ompassing agreement.
contract, Franchise may be sold but PON agree purchasers (where applicable, new site),
nination for breach of contract, PON have rent-free use of premises for 6 months. No sale
e place if agreement not renewed. Franchisees cannot give notice to terminate (resignation does not apply).
xrcial rate based on value of opportunity to retailer.
receives traffic related pay figures. A variable premium is then added as well as Intermittent
aces, Premium payment (see section on Remuneration). The final figure is advised to Payroll who deal with
the Franchisee. Franchisee sets pay/conditions for staff.
2 own cover or PON waiver.
y payments — 2 months in arrears,
on of safes and alarms for IFPOs, CFPOs provide own safes etc. Other equipment often rented or purchased.
asiness hours 9.00 ~ 17.30 Mon-Sat. Whenever possible will match hours of store.
\U Target reviewed annually — all customers to be served within 5 minutes, best endeavours to achieve 100%.
sday.
Isory.
Isory.
€ test compulsory/4 week classroom training for all staff, including replacements.
mform to FPO design standards. PON will provide advice on layout, siting and must give final approval.
anity at 5 year break to insist on refit to new standard. All maintenance, service and equipment running costs by
jee.
5 disabled writing desk and must adhere to the Disability Discrimination Act Legislation.
: POPOS min 7 panels.
) material may be displayed, All promotions must be cleared through Sales Support.
41
Manoging Agents Contrits I
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Manoging Agents Contracts I
Modified Contract Sub Post Offices (MSPOs)
lividual — open ended 3 months notice termination at any time by either party. :
‘onths notice, Agent liable for temporary expenses incurred by PON if insufficient notice is given.
ist April 2000, if the transfers is by way of a commercial arrangement with an outgoing agent, the new I
nastet will no Ionges be subject to an introductory payment equal to three month's remuneration.
fices also have Deferred Fees due for payment on transfer. These Subpostmasters are normally ex-employees of
Office
ceives remuneration based on standard Core Payment + Traffic Related Payment
ion on Remuneration). Agents set pay and conditions for staff
ch and Stock covered by business policy. Agent responsible for all other risk cover. I
payments with the Traffic Related Payment 3 months in arrears (see section on Remuneration).
1 of safes and alarms and Ariti Bandit Screens.
30 Monday to Friday, 9.00-12.30 Saturday. May operate longer hours at LM’s discretion.
Full Range,
mers to be served within 5 minutes.
lay. I I
x practical,
ed but voluntary: Discussed at appointment,
wvides initial Agent training and distance learning materials. Training designed to match needs of individual
design standard, Agent liable to clean, decorate and maintain inside and out. Agent responsible for lighting andI
Voluntary improvement encouraged if in line with agreement from PON.
aere to Disability Discrimination Act Legislation.
nels,
ind publicity may not be exhibited in any part of the contained area without the consent of PON.
i
8 I
‘Managing Agents Contracts
Scale Payment Sub Post Offices (SPSOs)
Contractual Terms With individual — open ended 3 months notice termination at any time by either party.
Resignation/Termination/I Three months notice. Agent liable for temporary expenses incurred by PON if insufficient notice is given.
Sale of Business
Licence fee As from 1st April 2000, che Appointment Scale will no longer apply to new Subpostmasters taking over scale payment
sub offices.
Pay Agent receives remuneration based on Assigned Office Payment + Product Payment
(see section on Remuneration). Agents set pay and conditions for staff.
Insurance
PON Cash and Stock covered by business policy. Agent responsible for all other risk cover.
Speed of Payment
Monthly payments with the Product Payment 2 months in arrears for offices with remuneration of over or equal to
£14,000 pa. (See section on Remuneration.)
Additional Allowances Provision of safes and alarms and Anti-Bandit Screens.
Hours Standard hours: 9.00-17.30 Monday to Friday, 9.00-12.30 Saturday. May operate longer
(and occasionally shorter) hours at LM’s discretion.
Services ‘Normal Full Range.
Quality of Service All customers to start to be served within 5 minutes.
Balances Wednesday.
Single Queue Wherever practical.
Workwear Encouraged but voluntary: Discussed at appointment.
‘Training PON provides initial Agent training and distance learning material, Training designed to match needs of individual.
Design and Fit-out
No national design standard. Agent liable to clean, decorate and maintain inside and out. Agent responsible for lighting
and heating. Voluntary improvement encouraged if in line with agreement from PON.
Disabled Access Must adhere to Disability Act legislation.
POPOS None at present,
Advertising Some restrictions apply ~ see Section 13, Paragraphs 12 and 13 of the Subpostmasters Contract.
‘Contractual Terms
45
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Managing Agents Contracts
Community and Restricted Hours Offices
Contractual Terms With individual ~ open ended 3 months notice termination at any time by either party.
Resignation/Termination/I Three months notice. Agent liable for temporary expenses incurred by PON if insufficient notice is given.
Sale of Business
Licence fee N/A
Pay Agent is paid on a scale of payments based on the expected units per annum plus a rate per annum according
to hours worked. (Usually less than $0,000 units and not more than 30 hours per week.)
Insurance Covered by PON Cash and Stock policy.
Speed of Payment Fixed payments.
Additional Allowances Provision of safes and alarms and Anti-Bandit Screens.
(c.g. Telephones)
Hours Less than 37.5 hours per week.
Services Do not usually provide a full range of services.
Quality of Service ‘Waiting time to be kept to the minimum.
Balances Wednesday.
Single Queue Wherever practical.
Workwear Not a requirement.
Training PON provides initial Agent training and distance learning material. Training designed to match needs of individual.
Design and Fit-out No national design standards, Agent liable to clean, decorate and maintain inside and out; Agent responsible for for
lighting and heating Voluntary improvement encouraged if with agreement from PON.
Disabled Access Must adhere to Disability Discrimination Act legislation.
POPOS None at present.
Advertising Some restrictions apply ~ See Section 9, Paragraph 6 of the Community Subpostmasters Contract.
Contractual Terms
47
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‘Managing Agents Contracts
Prohibited Activities
‘There are specific prohibitions or clauses in all of
the various contracts in some of the following areas.
‘This is not a definitive list so please check with the
‘Territorial Personnel Support Manager (Agents) or I
the Retail Line Contract Manager for further details. I
+ Use of the name “Post Office” for private
business activities
+ Canvassing work from other Post Offices
+ Borrowing or lending money to a Post Office
employee or on the security of pension and
allowance order books
* Using Post Office Network employees for I
private business when they should be on Post I
Office duties
+ Betting and Gambling I
+ Political Activities
+ Banking & Bill Payment services
+ Utilities Payments and Pre-Payment tokens
4g Contractual Terms
Managing Agents Contracts
Network Outlet Review
Line Managers are required to support all agents to
manage our post offices effectively, enabling them to
meet the standards required by our Business. To do
all this regular visits to post offices are a key part of
the Line Manager's schedule.
‘The scheduled visits are known as Post Office
Reviews, These visits are an opportunity for the Line
Manager and the post office manager to agree
improvement activities, to develop action plans
together and ensure conformance.
Progress on the agreed actions is followed up at the
next scheduled visit or on a specially arranged extra
visit as appropriate.
‘The number of scheduled visits to each post office
is determined by size, location, opening hours and
risk. An indication of how this may work is shown
in the flowchart overleaf. More information will be
available within your cluster group or via your Head
of Retail Network.
In addition to these scheduled visits you could make
a number of ad hot visits to post offices for
numerous reasons, i.e:
+ prompted by a request from an agent
+ as the result of a security incident
+ for taining purposes
+ to review an agreed improvement.
Responsibilities ———__———-_ 49
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Managing Agents Contracts $__————— I
Network Outlet Review Diagram I
To evaluate an outlets
performance against key I
business objectives
I
I
"To identify and agree
opportunities for I
improvement/development
"To fully support staff and
agents to provide a quality
service to our customers I
Requirements} I Input from outlet manager I
and Line Manager
Top 6000 ~ 12 reviews
per year I
Frequency Medium outlets ~
2 reviews per year
1 review per yeat
PrincpleI_—pI Continuous improvement
Responsibilities
Smaller outlets —
50 I
I
————— Managing Agents Contracts
Network Audit
‘The Network Audit Team is Post Office Network's
internal audit function, responsible for auditing the
network of post offices throughout the UK.
An audit can take place at any time of a working day
throughout the week. The audit process is such that,
once cash figures are reconciled to the post office
manager's declaration, the audit is usually carried
out whilst the office is open, This is to ensure that
any disruption to customers is minimised.
Findings at an audit are discussed with the post
office manager on the day of the audit, Following
the audit, a narrative report is sent to the post office
manager and copied to the Line Manager or the Area
Manager for information and to ensure that
corrective action is taken as appropriate.
Network Audit activities include:
+ Asset verifications and compliance audits at
post offices
A programine of audits is managed centrally using @ ris
based approach utilising models that identify risk in terms
of offce performance or that identify poteatial fraudulent
activity The level of compliance audié coverage is dependent
on the level of risk identified at each individual post office.
Post offices managed by nev agents are audited within the
first 6 months of appointment.
st
Responsil
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‘Managing Agents Contracts
* Asset verifications following a robbery or
burglary incident
‘An asset verification is undertaken at post offices following
«robbery or burglary incident where « loss occurs. Network
Audit provide « copy of the accounts and a narzaive report
to the Security and Investigation ‘Team,
‘here may be occasions when the level of loss does not
necessitate an audit attendance. The waiving of this audit is
only allowed if the full ogrement of the aeat, and the Line
‘Manoger, the Area Manager and the Network Audit
Manager is achieved.
+ Asset verifications at the transfer or closure of
a post office
‘Network Audit attends transfers or closures to verify PON
assets on behalf of the business and act as an independent
witness to the transfer of PON assets.
Any irregularities or large unexpected losses,
discovered on the day of the audit, are reported
immediately to both the Line Manager
Representative and the Security and Investigation
‘Team, The Network Audit Team has the responsibility
to report these incidences but where grounds exist
to suspect dishonesty, that may result in a
suspension, this decision is to be taken by the Line
‘Manager.
52 ——___________ Responsibilities
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Managing Agents Contracts
Section 12 of the Subpostmasters Contract expressly
forbids a Subpostmaster ‘to make use of the balance
due to Post Office Network for any purpose other I
than the requirements of the Post Office service; and
he must, on no account apply to his own private I
use, for however short a period, any portion of Post
Office Network funds entrusted to him’ In the
circumstances of an audit, assets would be
considered not to be on hand where a large loss
exists, a personal cheque is on hand, misuse of
funds is admitted or any attempt to falsify the I
accounts is made to cover missing funds.
‘The Network Audit Team meets its customer
commitments through the following activities: I
+ There is a dedicated Auditline to answer agent;
and Line Manager queries. Their number is I
and! “j and they
Gait De Coniacied between 8.15 and 17.45
Monday to Friday. Outside those hours there is
a answerphone facility,
+ Meeting quarterly with HoRNs or their
representatives to discuss generic and
operational issues arising from audit activity
+ Performing special requests audits based on
Line Manager concerns which are assessed and
dealt with by the Planning Team. The form to
submit these audit requests can be obtained
from the Auditline on the above number. I
Responsibilities
Managing Agents Contracts
Counters Club
‘The Counters Club was developed to boost the
merchandise sales of agency post offices. The club
provides:
+ the chance to order from over 9,000 top
selling brands delivered by Palmer & Harvey
McLane
+ retail appraisal in two stages —a site survey
and merchandise appraisal. After the appraisal,
a Retail Business Adviser will help in the
development of a business plan and carry out a
retail proposal
+ a consumer driven promotional programme.
It is available to all SPSO/MSPO contract type
Subpostmasters.
54 ——_________ responsibilities
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Mailwork Responsibilities
Some post offices are known as Mailwork Post
Offices or SPDOs. This type of office provides
premises and supervision for staff employed by
Service Delivery. Mailwork is an integral part of the
Subpostinaster’s contract and should be treated in
the same ways as any other product. The payment
the Subpostmaster receives for provision of
Mailwork is based on the amount of postmen they
accommodate.
‘The Subpostimaster's and Service Delivery’s
responsibility is set out in the Accommodation and
Supervision Specification. The Line Manager should
familiarise themselves with these responsibilities. If
the Subpostmaster fails to meet his obligations
under the terms of these responsibilities then the
Line Manager will be expected to treat these failures
in the same way as they would with other service
failures.
The contractual arrangement is between Post Office
Network and the Subpostmaster, Service Delivery
should only be communicating with the
Subpostmaster on day to day minor operational
matters. Any issues between Service Delivery and the
Subpostmaster should be referred to the Line
Manager for resolution,
Responsibilities, ———t_______ 55
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I
Manoging Agents Contracts
During the years 2000/2002 a great deal of work is
being undertaken to bring the often space deficient
accommodation up to the standard, The project for
these upgrades is being led by Service Delivery, but
you may be called upon to facilitate the
communication between the Subpostmaster and the
project group.
If you need any further information on Mailwork
you should in the first instance contact your
‘Territorial Personnel Support Manager (Agents).
56 ——__________—_ Responsibilities,
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‘Managing Agents Contracts I
Horizon
The roll out of our automated trading environment
across our network should be complete by early I
summer 2001. By then all outlets will have the
capability to capture transactions electronically at
point of sale inchiding automated payments via
smartcards, produce electronic cash accounts and
link directly with the cash and stock management
system.
Investing &1bn in the automation of our network
requires a big investment in terms of involvement
and commitment from our people including: I I
+ the creation of a fully automated network
requires new ways of working including a
systematic approach to product and service
management with operational discipline and
conformance throughout the business
+ line managers are key players in leading and
motivating outlet staff to manage the transition
to Horizon and exploit its commercial.
potential
+ due diligence needs to be exercised in
managing amounts in suspense especially cash
shortages
Responsibilities § —___———————_—_— sr I
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‘Manoging Agents Contracts ———
+ outlets need to report all equipment or
business process problems without delay to
the appropriate helpdesk and obtain an I
incident number. Any problems in resolving
incidents should be reported via the Network I
Business Support Centre (NBSC) to their I
complaints team I I
I
+ service improvement ideas should be
channelled through NBSC for evaluation
+ advice on the procedure for and costs of
providing or moving Horizon equipment,
which is the property of ICL Pathway until I
2005, can be obtained from the Network
Transformation team. I
(Our aspiration to be a global distribution company
requires us to provide a first class, automated retail I
channel which is capable of supporting wider
business requirements and is at least the equal of I
our competitors, Outlets which do not respond in
an appropriate manner that befits our contractual
requirements of them will need to be managed ina
firm but sensitive mannex.To achieve this there can
be no compromise on either service standards or I i
business and leadership values.
58 —___________Responsbblities I
‘To supplement further, the following retail and
business courses can also be offered to all
Subpostmasters:
+ Layout Course
. Refit Course
* Operating Controls Course
. Finance Course
+ Merchandising Course.
For further details speak to your Line Manager for
details or contact the Retai
Administration Support o
Responsibilities
Managing Agents Contacts,
61 I
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‘Managing Agents Contracts I
Corrective Action I
(Contract Application Guidelines)
This section gives some guidelines for dealing with
those Subpostmasters who are thought to be in
breach of their contract.
It is not possible to cover every eventuality, however, I
more information is available from the Territorial
Personnel Support Manager (Agents) or the Retail I
Line Contract Manager.
In considering what corrective action may be
appropriate, you should take the following into
account: I
* experience
* record I
i
+ age
+ ill health
+ severity of the problem and other extenuating
circumstances such as: I
— exceptional pressure
— training I
introduction of new services. I
This list is not intended to be exhaustive and other
circumstances may need to be considered.
Corrective Action —— 63
Managing Agents Contracts
Subpostmasters are agents, not employees, of Post
Office Network and hold a contract for services. It is
important to remember that your role as Line
Manager is to support and enable all Subpostmasters
to deliver the service as defined in their contracts. If
you feel that there are signs of difficulty in the agent
falfilling their contractual term, then you should
explore the situation with the Subpostmaster to
establish if further help and encouragement can be
given. If these encouragements fail and a
Subpostmaster is found to be in breach of contract,
there are certain steps that can be taken. In the most
serious cases this could lead to termination of the
Subpostmaster’s contract.
What action can be taken
+ Performance Discussions (Oral)
+ Written Warnings
* Termination of Contract by Three Months
Notice
* Three Months Remuneration in Lieu of Notice
Precautionary Suspension
* Summary Termination of Contract.
64 Corrective Action
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‘Managing Agents Contracts
Performance Discussions (Oral)
These are of value as aids to improvement and are
intended to end malpractices before such actions get
out of hand. The aim is to assist and help, and in so
doing, avoid the need for further action, Oral
‘warnings cannot be relied upon as a basis of
termination at a later date, however it is suggested
that a diary entry be kept of any issued.
Written Warnings
This is the preferred approach where oral warnings
have had no effect and in which contractual action
may become the final result, however unlikely that
is initially. For example, the types of cases involved
are for Non-Compliance or Non Observance of
rules or the failure by a Subpostmaster to improve
operational performance or to properly maintain
their premises to support our Standards.
The number of times that a written warning will be
issued will depend to a very large measure on the
type and nature of the occurrence. It is therefore
essential that ALL written warnings are recorded and
that, on each occasion, the Subpostmaster is given
the opportunity to give an explanation in response
to the concerns. If the Subpostmaster's explanation
is accepted, they should be informed of the
‘outcome.
Corrective Action ————~
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Managing Agents Contracts
Termination of Contract by Three
Months
The option to give three months notice of,
termination MUST NOT be used as a means of
simply avoiding the Summary ‘Termination route and
its associated appeals provisions.
In some cases there will come a time when, despite
warnings, no improvement has resulted and it will
need to be determined whether the contract should
be terminated, Given that there is no appeal against
such action, any decision must be taken after serious
consideration of all circumstances in the case.
If there is a decision to end the contract because
there is little or no likelihood of the Subpostmaster
reaching and sustaining the standard, a letter should
be sent giving three months notice of termination
in accordance with paragraph 10 of section 1 of the
contract. The wording of this letter is very
important. NO REASON for the termination should.
be given. The letter should include the words ‘in
accordance with the terms of your contract’. ‘
If the corrective actions described earlier in this
section have been carried out, the Subpostmaster
should be clearly aware of the reason. In cases
where you are challenged and pressed hard for a
reason, you may use the expression ‘Post Office
Network has lost confidence in you’,
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Finally, it is worth emphasising, that a
Subpostmaster has no formal right to an appeal in
cases of three months notice, although they do have
the right to request an interview with the Sales &
Services General Manager, or his representative, at
any time. If this facility is taken up, care should be
taken to avoid giving a reason for termination at the
interview.
Three Month Remuneration in Lieu of
Notice
There may be instances where, because of the nature
of the loss of confidence in a Subpostmaster (e.g. a
succession of large discrepancies), it would not be
prudent to ask them to work out their period of
notice, In these circumstances, the facility exists to
pay three months remuneration in lieu of notice.
However, you should only use this approach where I
You are convinced there is a real threat to the safety
of Post Office Network cash and stock. ‘
Precautionary Suspension
This course of action is considered appropriate in
the interests of Post Office Network when:
a) "The Subpostmaster is arrested,
b) The Subpostmaster has civil or criminal
Proceedings brought against them.
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©) There are irregularities or misconduct at the
post office or where grounds exist to suspect
dishonesty.
) Facts come to light calculated to cause public
scandal or grave embarrassment to Post Office
Network. :
©) In cases of bankruptcy and receivership.
Once you have come to a decision then the ‘
Subpostmaster should be advised of the reason why
this has happened. Their remuneration in respect of
any period of suspension will be withheld as long
as the suspension continues,
‘The period of suspension should continue as long as
investigations are being undertaken. It is desirable
for all parties that the period should be as brief as is
consistent with the appropriate investigations as
necessary, and enquiries must be completed as
quickly as possible.
If, during the period of suspension, evidence comes
to light which satisfies Post Office Network that
there is no need for continued suspension, the
Subpostmaster will be reinstated forthwith. If
enquiries are continuing and cannot be resolved
within three months, Post Office Network will
review the case to determine whether continued
suspension is warranted. The Subpostraster will be
informed in writing that the review has taken place.
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Summary Termination of Contract i
If, following suspension and investigation, it is I i
considered that there is a clear case to be made I
against the Subpostmaster and that summary. I
termination might be appropriate, the
Subpostmaster should be told that this course of I
action is being considered and they should be given I
the opportunity to give reasons why their contract I
should not be terminated. !
‘The Subpostmaster must be told clearly in writing I
the ‘charge’ (for example, misappropriation of Post
Office cash) made against them, and the letter miust
make clear that this charge could result in summary
termination of theit contract. This letter should also
offer the Subpostmaster the opportunity to attend a
face to face interview with their Line Manager to
answer the charge. The Subpostmaster can also
choose to respond to the charge in writing I
‘The Subpostmaster must be given adequate notice
(e.g. 7 working days) of any ‘Reasons To Urge’ I
Interview being arranged. The Subpostmaster must
be informed that they can bring along a friend, who I
must be a fellow Subpostmaster or sub office
assistant, Post Office employee or an official of the
National Federation of Subpostmasters. The chosen
friend or representative must not be involved or
implicated in the case. Once the ‘Reasons'lo Urge‘
Interview has taken place, it is courteous to provide
the suspended Subpostmaster with a resume of
notes taken at the interview.
Corrective Action 69 I
Managing Agents Contracts
If, following full consideration of the circumstances,
of the case, a decision is taken by Post Office
Network to reinstate, this should happen as soon as
practically possible after the interview.
If the decision is taken to terminate the
Subpostmaster's contract, a letter should be sent to
the Subpostmaster as soon as possible after the
interview, which should:
1, State the specific reasons why the contract is
being terminated.
2. Allow the opportunity for the Subpostmaster
to appeal against this decision, either in
writing or by personal interview with a Post
Office Network Appeals Manager.
3. Give ten working days from the date of the
termination letter to lodge such an appeal.
‘The flowcharts on the following pages have been
included to help clarify the process. However the
‘Territorial Personnel Support Manager (Agents) or
the Retail Line Contract Manager will provide
additional and more detailed advice or guidance, We
strongly recommend that you seek this before
instigating any procedure.
‘When communicating to or about any Post Office
Network Subpostmasters, itis vitally important to
use the correct terminology. We have listed some
terms to be avoided at the end of this section
though this is not a definitive list.
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Lawyers’ Letters
‘More often than not, when the suspension/
termination process is progressed, Subpostmasters’
inadvertently seek legal advice, which they have
every right to do so.
If this occurs, then Line Managers should consult
the Territorial Personnel Advisor Teams (Agents)
before responding to any such request. This will
allow Post Office Network to consult our lawyers to
ensure we provide the proper response to any
Subpostmasters’ solicitors.
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Managing Agents Contents —________
Appeal Procedure
If a Subpostmaster decides to appeal against
termination of contract, the ‘Territory, via the Appeals
Manager Coordinator at the Service Centre, will refer
the case to an Appeals Manager. The Appeals i
Manager will be from a different part of Post Office
Network.
I
The nature of an appeal takes the form of a ( I
complete 'te-hearing’ and specifically looks at the i
charge being made against the Subpostmaster. The 1
Appeals Manager will either hold an interview with I
the Subpostmaster, or handle the case in writing, if !
the appellant wishes to do this. I
At the interview the Subpostmaster can be
accompanied by a fellow Subpostmaster or sub i
office assistant, Post Office employee or NFSP {
official.
The Appeals Manager will endeavour to hear the
appeal as soon as possible. In no event must the post I
office be advertised or transferred during the time — i
the appeal is pending. \
Decisions of the Appeals Manager will be I
communicated in writing to the appellant within
two weeks of any appeal hearing and considered I
final, However, if additional enquiries mean that this I
timescale cannot be met, an interim reply will be
sent explaining the delay. I
72). Corrective Action
H
Managing Agents Contacts
An example of the minimum case papers expected
at the Appeal Stage is shown within the process
map. Obviously each case is different, however the
Appeals Manager will be looking for documentary
evidence which supports the Line Manager's
decision to terminate. This includes:
+ leters to and from the Subpostmaster, and any
responses
* your rationale to support your decision
* any other mitigating factors to support your
decision to terminate.
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Consideration Given to Three Months
Notice, cumulative poor performance,
contracttal breach (other than dishonest)
‘Warning Letter expressing concern and
timescales or improvement
Give sufficient time to improve
(3-6 months minimum)
If-no improvement and performance still
‘unsatisfactory, give three months notice as
per contract or money in liew
I
Notice given to SPMR, no reason given. No
appeal mechanism. SPMR has right to
discuss issues with SSGM or representative
SPMR has no external resource such as
{industrial Tribunal or Civil Litigation, if case
handled correctly
Papers to HRSC
JLPPMOTI VDVON syWOW 2a,
sonnaog srably BuGompy
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— Terms to be Avoided
Terns to be Reasons Alternative
avoided
Compensation** I A Subpostmaster has no contractual entitlement to any Discretionary or ex-gratia payments
I payment following closure or loss of business. Any
I payments are discretionary or ex-gratia. Reference
I should only be made of ‘eligibility for consideration’.
Any indication that payments are as of right could have
- serious taxation as well as contractual implications
Contract of Service/ Not legally correct according to the Employment Contract for services
Employment Appeals Tribunal
Dismiss Only employees can be dismissed. See section on ‘Terminate contract
Corrective Action
Employee Not the correct status Agent, Subpostmaster
Employment Incorrect although the Agent/Subpostmaster may employ assistants I Appointment
Leave Since there is no obligation to attend personally there is Absence on holiday
- no contractual entitlement to annual or sick leave Absence through sickness
Salary Normally only associated with payments for employment Remuneration
**Compensation
In the majority, is used mainly for employees. However there are two classes of compensation offered to Subpostmasters:
Mailwork Compensation ~ if Service Delivery, through their rationalisation of Delivery Offices, decide to concentrate deliveries into one sorting
office, then a compensation payment may be made to the incumbent mailwork Subpostmaster.
MSPO Compensation — should the business decide to close, or relocate an MSPO office, other that for suspension cases, then the terms and
conditions of the MSPO Contract state the the Subpostmaster may be entitled to a compensation payment.
Corrective Action 79
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Health & Safety Responsibilities I I
Agents may need to be advised of their legal
responsibilities for Health & Safety as employers. I
Some of the legislation in this area includes:
+ Occupiers Liability Act 1957 —to ensure the
safety of visitors to a workplace
+ Bire Precautions Act 1971 — the requirement
for a Fire certificate I
+ Fire Precautions (Workplace) Regulations I I
1997 I
+ Health and Safety at Work Act 1974 (HSWA)
~ the general and fundamental duties in all
workplaces I
+ Health and Safety (First Aid) Regulations 1981
—to provide and inform employees of
adequate first aid facilities.
+ Reporting of Injuries, Diseases and Dangerous
Occurrences Regulations 1995 ~ to report any i
serious or dangerous accidents at work I
+ Management of Health and Safety at Work I
Regulations 1999 — Risk Assessment and
arrangements to plan, organise, control,
monitor, review, inform and train in H&S
measures, For managers, employees,
contractors and temporary or agency workers.
Health & Safety ——— a
Maneging Agents Contacts
Health & Safety Inspections
Inspectors of the Local Council Environmental
Health Department or the Health & Safety Executive
may inspect premises to enforce the law.
They may:
* carry out inspections of all work areas at any
time
+ remove samples or any substance or material
they may wish (o test or use as evidence.
seek assistance from employees and their
managers and ask questions
+ prohibit the use of unsafe machinery or
equipment or unsafe work areas
+ prosecute anyone who deliberately obstructs
their investigations.
Health & Safety Managers and their teams will
provide supportive guidance for Line Managers in
any of these areas,
82. ——____________ Health & Safety
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Disability Discrimination Act 1995
Subpostmasters have obligations as a provider of I
services towards disabled customers under the
Disability Discrimination Act 1995.
‘The Post Office has issued guidance in the form ofa!
booklet called "Disability —The Disability
Discrimination Act 1995 (Part 111) and your
business, An introduction for Subpostmasters and
staff." This guidance was issued prior to 1 October
1999. If you have not received a copy of this
booklet, it can be obtained from Sue Pattrick, DDA
‘Compliance Awareness Manager, 2nd Floor North,
Gayrelle House, 2-14 Bunhill Row, London, EC1Y I I
8HQ. The information contained in this booklet is i
for guidance only and is not exhaustive. Hach
problem should be treated individually, because no I
standard response can be given that would cover I
everyone or every situation. Any issues where
particular advice is needed may be sought from one
of the following points:
Paul Barran, DDA Project Manager, Post Office
Network, 30 School Lane, Lawford, Manningtree,
Essex, CO11 2JA
Telephone:
Sue Pattrick, DDA Compliance Awareness Manager,
2nd Floor North, Gavrelle House, 2-14 Bunbill Row, I
London, ECLY 8HQ I
‘Telephone:
Health & Safety, ———______ 83 I
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Kay Hounsham, Disability Advice Centre, iT Concept i
2000, 250 Farnborough Road, Farnborough, Hants, i
GU14 7LU,
‘Telephone Postline:
Health 8 Safety
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Glossary
Term I Meaning
ACC I Agency Changes Communiqués I
AM — I Area Manager
BSM I Business Service Management i
EPO. I Company Franchise Post Office
CHAD I Cash Handling And Distribution I
COA I Conditions of Appointment
DSS __I Department of Social Services
FPO I Franchise Post Office
H&S I Health and Safety
HESO I Horizon Field Support Officer
HoA I Head of Area
HoRN I Head of Retail Network
HRSAP I Human Resources Systems, Applications
and Products in Data Processing
HSWA I Health and Safety at Work Act 1974
Glossary 5
‘Managing Agents Contacts ———
IFPO I Independent Franchise Post Office
IR Industrial Relations
LM I Line Manager
MNGR I Manager
MSPO I Modified Contract Sub Post Office
NESP_ I National Federation of Subpostmasters
NI National Insurance
NOR I Network Outlet Review
NBSC_I Network Business Support Centre
OBC I Operational Business Change
PON I Post Office Network
PONU } Post Office Network Unit
POPOSI Post Office Point Of Sale
POSIS I Post Office Security Investigation Service
QoS} Quality of Service
QPA I Quality of Performance for Agency
Clients
Glossary
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RGM I Regional General Manager
RM I Royal Mail
RML I Royal Mail Letters
RoMECI Royal Mail Engineering
RPI I Retail Price Index
RTU_ I Reasons To Urge
SCS I Shaping for Competitive Success
sD Service Delivery
SPDO I Sub Postmaster Delivery Office
SPMR I Subpostmaster
SPSO_I Scale Payment Sub Post Office
SSGM I Sales and Service General Manager
TP ‘Transaction Processing
WIMSI Waiting Time Measurement System
Glossary —
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