Dear Brother/Sister,

SECONDARY CONTRACTS

The FBU Annual Conference in Southport recently discussed the issue of secondary contracts within the Fire and Rescue Service and the possible impact these contracts may have on the terms and conditions of members and on the pension and compensation rights normally due to our members and their families.

We are aware that in various Authorities members are being encouraged to undertake a variety of additional duties under secondary contracts of employment. Having researched the issue in detail, the purpose of this circular is to warn of the potential dangers in doing so.

Additional duties can be undertaken under the main contract of employment and provided the tasks undertaken are within the role-map of a Firefighter there are no problems associated with the Firefighters’ Pension Schemes or the Firefighters’ Compensation Scheme. If they are undertaken under a secondary contract however, the contract may not be covered by the Firefighters’ Compensation Scheme with the result that members and their families will not be properly compensated if someone is killed or seriously injured:

• If you are not required to fight fires under the secondary contract (for instance, where the contract is as a driver trainer) you will not be covered by the Firefighters’ Compensation Scheme.  Normally, if you are injured or killed on duty, you and your family qualify for an injury award and a lump sum compensation payment of up to five times the pay of a competent firefighter. That will not apply in such cases.

• Even if the contract can involve fighting fires (for instance, a secondary contract to perform USAR duties), any injury award will be based only on your earnings and length of service under the secondary contract. Your earnings under the secondary contract might be the same but if you have only worked for a few months or years under that contract your injury award will be significantly less than you might think.

You should not underestimate the consequences. By way of example, a member who has a “slight” disablement and who has 25 years’ service is guaranteed, broadly speaking, an income of 60% of his or her pensionable earnings (minus 75% of any other pension he or she receives). If he or she has less than five years’ service the guarantee level is only 15%.

Whole-time Firefighters working under a second contract as a Retained Firefighter may have a similar problem.

• If your Retained contract started before 6 April 2006, and if you are injured performing your Retained duties, then any injury award will be based on the earnings of an equivalent whole-time Firefighter and the number of years you have worked as a Retained Firefighter.

• If your contract started on or after 6 April 2006, however, the injury award will be based on your Retained service. That is not the number of years that you have worked as a Retained Firefighter: each year worked counts as a fraction of a year, the fraction being calculated by comparing your Retained earnings with the earnings of an equivalent Wholetime Firefighter.

Some Fire and Rescue Authorities are attempting to solve these problems by guaranteeing to make up any injury award either by taking out insurance or by guaranteeing to do so out of their own resources. Such insurance arrangements and guarantees are unlawful and should not be relied upon.

If you are a member of the Firefighters’ Pension Scheme or the New Firefighters’ Pension Scheme you will also be entitled to an ill-health pension. This is not dependant on being on duty when you are injured and will not be affected by any secondary contract you hold.

Conclusion

The issues outlined above are cause for considerable concern. The Union has already discussed our concerns with Pension officials of the Department for Communities and Local Government (CLG) and will be raising the issue as a matter of urgency at the next meeting of the Firefighters Pensions Committee. The issue of secondary contracts will also be raised with the Fire Service Employers as appropriate.

We are aware of a number of cases where members have been seriously misinformed about these issues by Fire and Rescue Authorities. Members are advised to consider these points when considering any proposals from Employers regarding secondary contracts.

Further advice will be issued to local FBU officials and such officials will therefore be in the best position to provide advice to individual members in each case. Any members who may be affected by the issues outlined are strongly urged to make contact with local officials.

Best wishes.

Yours fraternally.

MATT WRACK
General Secretary