POL00448285
POL00448285
Standard Subpostmasters Contract — key obligations document
Introduction
As a Postmaster, whether you intend to apply as an individual or through a limited company,
partnership, or limited liability partnership, you will enter into a contract with Post Office for the
operation of a branch you are applying for. This contract will set the obligations on you as
Postmaster, as well as the duties of Post Office Limited. It is important that you (and any party to the
contract) understand these obligations. However you decide to manage your branch, whether
providing personal service or not, with Post Office's support you are responsible for meeting these
obligations.
This guide is designed to give you a high level overview of the contract. This guide is not legal advice
and will not form part of the contract. It is not intended to replace you reading fully, and
understanding, the contract. You will receive a copy of the contract that you will be asked to sign. The
contract will be a legally binding document, and it is strongly recommended that you seek your own
independent advice, which may include legal support.
Contract Breakdown
The contract is broken down into 25 sections, which set out the obligations in the running of a
branch. This is supported by an Operations Manual, which is your main guide to day-to-day branch
operation and is designed to help you manage your branch, and a Remuneration Booklet which sets
out the remuneration structure for your branch. Both these documents form part of your contract.
It’s worth noting that whereas we may refer to you as Postmaster (or Subpostmaster), in some of our
contracts the term ‘Operator’ is used. Any reference to Operator means Postmaster.
Standard Subpostmasters Contract - Sections
Section 1 — Subpostmasters’ Contract and Status
This section covers some general obligations for the operation of the branch, including the opening
hours for the branch, a Postmaster being an agent and not employee of Post Office Ltd, the
clauses in respect of resignation and termination as well as the overarching duties that both
parties need to perform.
Section 2 - Remuneration
Sets out information in connection to remuneration (payments in respect of running the branch).
This information is supplemented by the Remuneration Booklet, which you will also receive a copy
of.
Sections 3, 4, 5, 6 & 7 - Subpostmasters Absence from Office
These sections cover absence from the branch setting out that as postmaster there is no
requirement to offer personal service but whether absent or not a postmaster is still responsible for
the proper running of the office. The sections also cover the availability, in certain circumstances, of
holiday and sick substitution allowances.
Section 8 — Statutory Sick Pay Scheme
This sets out the rules surrounding statutory sick pay (noting that a postmaster is not an employee
of Post Office Ltd).
Version
Classification I Description Author Date Status
V2.1
Confidential I Standard Subpostmasters Contract I David Southall I 11JUL24 Final
= Key Obligations Document
POL00448285
POL00448285
Standard Subpostmasters Contract — key obligations document
Section 9 —- Resignation and Retirement
This section explains that a postmaster needs to give three calendar months’ notice if they wish to
resign their appointment.
Section 10 - National Insurance
Sets out the rules in connection to National Insurance contributions.
Section 11 - Injury Resulting from Criminal Attack
This section explains the criminal injury compensation scheme that is applicable where a
postmaster or an assistant unfortunately sustain permanent physical injury during the
theft/attempted theft of Post Office Ltd property on the premises.
Section 12 — Responsibility for Post Office Limited Stock and Cash
This sets out a postmaster's responsibility in respect of cash & stock and its safekeeping. It
explains that
* Apostmaster’s liability for losses caused through their own carelessness, negligence or
error or through carelessness, negligence or error of an Assistant
* That where Post Office Ltd needs to carry out an investigation into the cause of any
financial shortfall in the branch that this must be reasonable and fair
* The need for Post Office Ltd to provide a Horizon system that is fit for purpose.
e The need to account accurately and that Post Office funds cannot be used for any purpose
other than the operation of the Post Office Branch.
«The need to follow all physical and procedural security requirements required.
Section 12a - Responsibility got the Safeguarding of the Mail
This sets out a postmaster’s responsibility in respect of mail and its safekeeping.
Section 13 - Premises
This section explains the need for a postmaster to hold the branch premises either as owner or on.
a tenancy subject to at least one quarter's notice. It also explains that, in certain circumstances,
exceptions are sometimes allowed as to tenancy where the premises are owned or held on a
suitable tenancy by the spouse of the postmaster or where the Post Office branch is transferred to
a near relative of a subpostmaster of long service, who holds the premises on a suitable tenancy.
Section 14 - Hours of Business
This section sets out the contracted hours for the branch.
Section 15 - Assistants
Sets out the need for a postmaster to register any employees (‘Assistants’) that have any access or
involvement in the operation of the Post Office to ensure they have been vetted through Post
Office's robust processes.
Section 16 - Divulgence of Official Information, Correspondence & Interviews
This section explains how official information should be handled.
Section 17 —- Subpostmasters’ Private Business
Sets out that there is a restriction on being able to undertake private business activities in the
Branch premises for certain products and services, including (but not limited to) the following
services:
. Mails services
Version Classification I Description Author Date Status
v2.1 Confidential Standard Subpostmasters Contract I David Southall I 11JUL24 Final
= Key Obligations Document
Standard Subpostmasters Contract — key obligations document
POL00448285
POL00448285
. Bill payment services
. Banking (including ATMs)
. Financial Services
Section 18 - Non-observance of Rules: Appeals Procedure & Section 19 - Offences:
Suspension: Enquiries by Officers of the Investigation Division
There may be occasions where things aren't working quite as they should, and these obligations
are not being met. If this is the case, Post Office will take steps to ensure performance of the
contract, while also supporting the Postmaster in this process. This may lead to the suspension or
termination of the contract and these sections set out the contractual basis for this.
Section 20 — Infectious (Including Contagious) Diseases
This sets out the position to be taken should the postmaster have an infectious disease.
Section 21 — Telephone Facilities at Sub Post Offices
This explains how the provision of a telephone line at the branch should be handled.
Section 22 — Quality Standards
Explains the need to maintain the highest standards in all matters connected with the branch,
Section 23 — Redemption of Telephone, Television, Motor Vehicle and Other Savings Stamps
This section is no longer relevant
Section 24 - Mailwork
If the branch offers ‘Mailwork’ a separate ‘Mailwork Requirements Manual will be provided for its
operation
Section 25 —- General Data Protection Regulation Schedule
Rules in connection to Data Protection
Version
Classification I Description Author Date Status
V2.1
Confidential I Standard Subpostmasters Contract I David Southall I 11JUL24 Final
= Key Obligations Document