Associate Handbook 2018

LOCKTON COMPANIES LLP ASSOCIATE HANDBOOK

United Kingdom Associates Human Resources Division

Lockton International The St Botolph Building 138 Houndsditch London EC3A 7AG

Issued: August 2018

CONTENTS

1

WELCOME TO LOCKTON ..................................................................... 2

2

ABOUT THE ASSOCIATE HANDBOOK ................................................ 2

3

CONDITIONS OF EMPLOYMENT ......................................................... 3

4

REMUNERATION .................................................................................. 6

5

BENEFITS .............................................................................................. 7

6

ABSENCE FROM WORK ...................................................................... 12

7

ASSOCIATE RELATIONS .................................................................... 46

8

ASSOCIATE DEVELOPMENT .............................................................. 54

9

HEALTH, SAFETY AND ENVIRONMENT ........................................... 58

10

GENERAL INFORMATION .................................................................. 63

1

WELCOME TO LOCKTON

Congratulations on becoming an Associate of the world’s largest privately owned global insurance broker. At Lockton, we believe our success is a direct reflection of our talented Associates. In establishing itself as a great place to work and a great place to do business, Lockton seeks to attract and retain the most talented people for each role, and to encourage the development of all Associates to their full potential. Lockton promotes equality of opportunity and aims to treat all its Associates in a fair and consistent manner, promoting good working relationships and encouraging high standards of conduct and work performance. The real key to Lockton’s success is its commitment to client service. Our mission statement is “We Live Service” and our pledge is “to be the best place to work in insurance and to be the best place to buy insurance”.

Our Beliefs

Since Jack Lockton established the parent company more than 40 years ago, we have been committed to doing the right things for our customers and the right things for our Associates. Fundamental to this is a set of philosophies and principles that define the way we do business. As a global company and a local employer, we take our responsibility seriously to deliver uncommon results for our clients and to enable our people to fulfil their potential.

Lockton Companies' Philosophies and Principles of Business

 Be committed to the highest standards of excellence in everything we do  Practice the Golden Rule, and sustain a highly ethical, moral and caring culture  Recognise our Associates as our most valuable assets  Provide the opportunity and support that allows associates to grow, improve and achieve their ultimate potential  Recognise and substantially reward exemplary Associate performance  Respect, value and nurture each client and carrier relationship  Be composed of people who demonstrate a passion for delivering unparalleled service-internally and externally  Make a recognisable difference to our clients' businesses through innovative solutions to their insurance needs  Be proactive in sustaining a meaningful corporate, social and civic responsibility  Maintain our independence and private ownership  Manage our business for consistent and orderly growth  Be a fiercely competitive and aggressive sales organisation  Generate fair and healthy financial returns

2

ABOUT THE ASSOCIATE HANDBOOK

This handbook is intended to give Associates general information and guidance on matters relating to their employment with Lockton and sets out what Lockton expects of its Associates. In turn it also explains what Associates are entitled to expect of Lockton. Together with the information given to Associates in their statement of Main Terms and Conditions of Employment (the “Contract of Employment”), the sections marked with an asterisk (*) form part of Associates Contract of Employment.

This handbook is a statement of policy only and is non-contractual, save as required by law or where noted with an asterisk (*). As such, Lockton reserves the right to amend/withdraw parts of the handbook. If there is any inconsistency between this handbook and the Associates Contract of Employment, the Contract of Employment will prevail.

References to “the Company” or “Lockton” in the Handbook should be taken to mean LIGS Limited, the employing Company.

Associates should read this handbook as soon as possible and if there are any points on which they are not clear the Human Resources Division will be able to give Associates a more detailed explanation.

This handbook is confidential and the property of Lockton.

3

CONDITIONS OF EMPLOYMENT

3.1

Normal Working Hours *

Normal working hours in the London offices are from 9.30am to 5.30pm, Monday to Friday. Regional office hours are normally from 9.00am to 5.00pm, Monday to Friday. If Associates are required to work different or longer hours they will be advised of these individually. With written agreement, Associates may work more than an average of 48 hours per week over a 17-week period. Further information on the Working Time Regulations can be found on LockDocs within HR Forms. Lunch breaks should be taken between the hours of 12.00pm and 2.00pm and should not normally be more than one hour in duration. However, in busy periods, Associates will be expected to be flexible on the timing and length of their break. If Associates are required to take their lunch break outside of the hours of 12.00pm and 2.00pm they will be informed by their Manager. Associates are asked to ensure that there is adequate cover in their Department during the lunch period.

3.2

The Right to Request Time off for Training or Study

In order to make a request under the provision to request time off for training or study, Associates must have 26 weeks’ service at the time of the request.

The Procedure

Associates will need to set out their request in writing, explaining the subject matter of the proposed study or training, where and when it would take place, the training provider or supervisor, extent of time commitments and how it would improve their performance or that of the business. Within twenty-eight days of receiving the completed request, the line Manager in conjunction with Human Resources, will agree to meet with the Associate. The objective of the meeting will be to discuss the proposal in greater depth and how best the proposal may be adopted. Associates have the right to bring a work colleague to the meeting. If the companion is unable to attend, Associates can re-arrange the meeting for a date within seven days of the originally proposed date providing the new time is convenient to all parties.

Within fourteen days of the meeting the Company will confirm the outcome in writing. The letter will either confirm acceptance of the request or reasons for rejecting the request. If the Company agrees to the request, Human Resources will complete all the necessary paperwork and send it to the Associate. If the request is refused, the Company will provide clear permissible grounds as to why the request cannot be accepted and set out the appeal procedure. For further details please see paragraph "Appeal Procedure" below. All time periods may be extended where both the Company and Associate agree. Any extension will be recorded in writing by the Company and copied to the Associate. If Associates are dissatisfied with the outcome they should appeal in writing giving full details of the grounds for the appeal. An appeal must be made within fourteen calendar days of receiving notification of the decision, to the next line of authority not previously involved. Within fourteen days of receiving the appeal notification, a further meeting will be held to discuss the working practises and the business case put forward by the Associate. Again, an Associate may be accompanied by a work colleague. Appeal Procedure

The final decision will be provided in writing within fourteen calendar days following the meeting either upholding or refusing the appeal. There is no further right of appeal.

The appeal process is designed to be in keeping with the overall aim of encouraging both parties reaching a satisfactory outcome.

3.3

Overtime

Overtime payments may be made to Associates eligible for complete half-hour periods over and above normal working hours. The first hour of overtime worked cannot be claimed. Overtime rates will not apply before 6.30pm for London Associates and 6.00pm for Regional Associates, Monday to Friday. Any overtime hours worked must be agreed in advance with Associate’s Managers.

Overtime is paid monthly in arrears and is calculated on the basis outlined below:

Days

Overtime Rates Time and one half

Monday to Saturday

Sunday and Bank Holidays

Double-time

For the purposes of overtime, the hourly rate is calculated by dividing the salary by the annual number of scheduled work hours including annual holiday and public holidays. A full-time Associate is normally scheduled to work 1820 hours per annum. Time off in-lieu for overtime is not normally allowed. However, under exceptional circumstances compensatory time off may be granted equivalent to the actual number of hours overtime worked. Prior approval from the Associate’s Managers is required.

3.4

Part-time Associates

Associates who work on a part-time basis (i.e. whose contractual working week is less than 35 hours) are paid at their normal hourly rate for overtime until 35 hours have been worked in any seven day period, commencing on a Sunday.

Shift Workers

Eligible Associates who normally work shift hours will be paid overtime for complete half- hour periods over and above normal contractual working hours. The first hour of overtime worked each day cannot be claimed. Overtime is calculated on the basis outlined in the table above. Associates must obtain the approval of their Manager in advance of working overtime.

Administration and Authorisation

An Overtime Report form must be completed in respect of all overtime hours worked each month. The completed form must be approved by the Associate’s Manager and then submitted to the Payroll Division for payment in the next monthly salary. The form can be found on LockDocs within HR Forms.

3.5

Equal Opportunities

Lockton is an equal opportunity employer, which means no job applicant or Associate will be treated less favourably than any another or discriminated against on the grounds of sex, race, age, ethnic origin, colour, nationality, disability, religion or belief, sexual orientation, gender reassignment status, marital/civil partnership status, pregnancy/maternity status or trade union membership or activity in respect of their employment or application for employment with the Company. The Company gives full and fair consideration to applicants who are disabled, having regard to their particular aptitudes and abilities; for continuing the employment of, and for arranging appropriate training for, Associates of the Company who have become disabled during employment; and otherwise for the training, career development and promotion of the disabled Associates of the Company. The Company will regard any complaints of discrimination with the utmost gravity and will deal with them sympathetically and confidentially. Any Associate, who feels that they have been discriminated against on any of the above grounds may, in the first instance, pursue a complaint through the Company’s internal grievance procedure.

A copy of the Company’s Equal Opportunities Policy is available from the Human Resources Division.

Equal Opportunities – Northern Ireland

Lockton is also committed to ensuring fair participation and providing equality of opportunity to job applicants and Associates regardless of their religious belief or political opinion.

The Company will regard any complaints of discrimination with the utmost gravity and will deal with them sympathetically and confidentially.

Any Associate who feels that they have been discriminated against under the terms of the Fair Employment legislation may, in the first instance, pursue a complaint through the Company’s internal grievance procedure. This will not hinder the individual’s right to seek redress under the Fair Employment legislation.

The relevant Partner of the Belfast office is responsible for the implementation and regular review of this policy.

The Company regards any form of unlawful discriminatory behaviour as a serious disciplinary offence.

4

REMUNERATION

4.1

Conditions of Employment

Although the pay period runs from the first day of the month to the last day of the month, salaries are normally paid on the 24th day (or on the preceding Friday when the 24th falls on a weekend). Part of an Associate’s salary is therefore paid to them in arrears and a smaller portion is paid in advance. Associate’s salaries will be paid directly into their bank or building society account, and they will receive a monthly online payslip detailing the payment. Any changes to bank and building society details must be updated via the HR Self Service site.

4.2

Remuneration Policy *

The Company has a Remuneration Policy which is agreed by the Board and implemented via the Remuneration Committee. This policy applies to the way annual bonus payments are agreed and made. Please see Appendix 1.

4.3

Salary Review

Rate of pay is set out in Associate’s Contract of Employment or as most recently notified to them by their Manager or the Company. Salaries are normally reviewed annually in July and are determined by individual as well as Company performance. Following such review, rates of pay may be increased. There is no contractual right to a pay increase following such review. An increase in one year does not give the right to an increase in the following year. Any variation to this requires written communication from the Company.

4.4

Salary Advances

In exceptional circumstances Associates may request a salary advance equivalent to a maximum of two weeks basic pay. Associate’s requests should be made in writing to their relevant Partner stating the reasons, and will require further approval from the Human Resources Division. Only one advance will be permitted in any twelve month period.

4.5

Pay Queries

Queries regarding pay received or deducted should be made to the Payroll Division.

If an Associate has queries regarding their income tax they should contact:

HM Inspector of Taxes London Chapel Wharf Area Trinity Bridge House 2 Dearmans Place

Salford M3 5BS Telephone: 0300 200 3300 Lockton’s reference number is 951 C1900WW

4.6

Deductions

Statutory Deductions

Lockton is required to deduct income tax and National Insurance from Associate’s salaries.

Voluntary Deductions

Voluntary deductions will be made from Associate’s salaries only with written approval.

 The most common deduction is in respect of a Season Ticket Loans

All season ticket loans must be repaid in accordance with the rules of the scheme, which are detailed on the season ticket forms found on LockDocs within HR Forms.

If an Associate leaves the employment of Lockton all monies owing become repayable in full. If no other provisions have been made to repay any outstanding balances they will be deducted from any final salary or from other monies owed. For the purposes of the Employment Rights Act 1996, Associates authorise the Company at any time during the continuance of their employment and in any event on termination howsoever arising, to deduct from their remuneration (which for this purpose includes salary, pay in lieu of notice, commission, bonus, holiday pay and sick pay) all debts owed by Associates to the Company, including but without limitation the balance outstanding of any loans (and interest where appropriate) advanced by the Company, the cost of repairing any damage or loss suffered by the Company as a result of any neglect or breach of duty.

4.7

Tax Form - P60

All Associates employed at 31st March each year will receive a Form P60. This is a summary of Associate earnings and statutory deductions in the year ending on 31st March. P60’s are normally issued with April payslip with the original being sent to the Inspector of Taxes.

The Company will issue your P60 via the HR Self Service Site on or around 30 th April each year.

5

BENEFITS

5.1

Life Assurance

Any entitlement to Life Assurance will be set out in the Associate’s Main Terms and Conditions of Employment.

The benefit is insured with an insurance company and the total costs of the plan are met entirely by the Company. The plan is written under trust and this means that the benefits are paid tax free.

Associates should let the trustees know whom they wish to receive the lump sum benefit by completing an Expression of Wish form on LockDocs within HR Forms.

Whilst the trustees cannot be legally bound by nominations they will always take it into account.

It is extremely important to make sure that Associates keep their Expression of Wish form up to date. In particular if circumstances change (e.g. marriage, children or divorce).

The Company reserves the right at its absolute discretion to vary the terms on which such benefit is offered on 3 months’ notice.

5.2

Pension

The Company complies with the employer pension duties for the benefit of its Associates in accordance with Part 1 of the Pensions Act 2008. The Company reserves the right at its absolute discretion to discontinue, terminate, vary or amend existing pension arrangements at any time and will not be liable to provide any other pension arrangements of a same or similar kind, or compensation in lieu of such arrangements.

Further details relating to pension and pension scheme are contained in the Members Pack provided to Associates.

5.3

Private Medical Insurance

Associates are eligible to join the Company’s Private Medical Insurance scheme, which is currently provided by BUPA, from their date of commencement with Lockton. The level of entitlement will be detailed in an Associate’s Main Terms and Conditions of Employment and membership is subject to the insurer accepting Associates for cover under the policy and at normal rates and subject to the rules of the scheme as in force and as amended from time to time (and any replacement schemes provided by the Company).

Associates do not have to join the scheme at the time of joining the Company and can enrol at a later date.

If Associate’s eligibility is for single cover, they have the opportunity to upgrade their cover at their own cost via payroll deduction to include their spouse/partner and/or children subject to them being eligible to participate in or benefit from such scheme pursuant to their rules. Please contact the Human Resources Division for further information. BUPA operate a customer help-line service so that Associates can seek advice in relation to the cover available under their policy if they need to make a claim. The help-line is available between 8am and 8pm on weekdays and 8am and 1pm Saturdays. The help-line number is 0345 607 0047. The Company also has an Employee Assistance Program (EAP) provided by Unum. This helpline provides free help and advice on any work-related, personal, emotional, and many other issues or concerns. It is independent, confidential and available 24 hours a day, 365 days a year. The helpline number is 0800 048 2702 or the website is www.unumlifeworks.co.uk . User ID: unum, Password: lifeworks.

5.4

Season Ticket Loan

If Associates travel to work by public transport they can apply for an interest free season ticket loan. Under certain circumstances the Company will agree to take over the balance on an existing season ticket loan from a current employer. Season tickets can be applied for online via the following link: http://us.locktononline.com/youatlockton/hr/europe/bene/Pages/SeasonTickets.aspx

The Company will make a series of twelve deductions from the Associate’s salary to recover the cost of the ticket.

If Associates leave the Company, any outstanding balance on their season ticket loan will be deducted from their final salary. It will then be their responsibility to obtain reimbursement from the appropriate authority for the remaining season ticket travel period. Occasionally a new employer will take over the balance of the loan and reimburse Lockton International the outstanding amount. Should this occur the Human Resources Division would write to the Associate’s new employer to seek their agreement to settle the outstanding balance.

5.5

Company Car Allowance

Associates eligible for a car allowance will be informed individually. They will be responsible for all costs of running the car, including petrol for personal use, road fund licence, tax, oil, maintenance and repairs and obtaining insurance etc. For the avoidance of doubt, the car allowance is not included in basic pay and will not count towards other terms and conditions of employment, which are related to Associates basic pay.

Eligible part time workers will receive a pro rata car allowance.

It is the responsibility of the driver to ensure that their personal car insurance covers them whilst using their vehicle for business purposes .

When an Associate uses their car for Company business a proportion of petrol expenses will be reimbursed by the Company. The current rate is 0.25p per mile, this amount is the same for Diesel and Petrol.

Associates are not entitled to any car allowance during any period over which they are in receipt of benefits under the Company’s Group Income Protection Scheme.

Any Associates driving on Company business should familiarise themselves with the Health & Safety Manual

5.6

Mortgage Service

The Company has made arrangements with Charles Cameron & Associates (CC&A), an independent mortgage broker, to assist with any questions about mortgages or in arranging a mortgage, who can provide a convenient resource which could save Associates time and reduce the stress normally associated with organising a mortgage. Although CC&A usually charge a fee of 0.5% of the mortgage amount for this service, Lockton Associates can use this facility free of charge. This facility is also available to friends and family.

For further information, contact CC&A either by:

- telephone: 020 7337 4037 or 020 7337 4031

- email info@ccameron.co.uk

- www.ccameron.co.uk/Lockton

5.7

Health Screening

Associates are able to either take advantage of an annual health check through Nuffield OR Bluecrest.

Nuffield

All Associates may take advantage of the Company’s Well Man/Well Woman Health Screen, which is arranged through Nuffield Hospitals. This is a full annual medical examination and includes a gender and age specific physical examination along with blood pressure and cholesterol tests. Associates over the age of 45 will have more extensive tests during their examination.

Bluecrest

This health screening is arranged at each office location and includes blood tests, blood pressure, height & weight.

The results of all examinations are totally confidential between patient and doctor.

Please note Associates under notice are not entitled to receive or book a medical during their notice period or after their employment has ceased. Any Associate who does receive a medical whilst under notice or after they have left the Company will be liable to re-pay to the Company the full cost of the medical. For further details relating to the Health Assessments, please contact the Human Resources Division.

5.8

Long Service Awards

Lockton International recognises the value of long service to the Company and will acknowledge 10, 20, 25 and 30 year anniversaries. Awards are as follows:

10 years: £,1500

20 years: £2,500

25 years: £3,000

30 years: £5,000

The long service awards are taxable as earnings (under payroll) and the associates will receive the above as net figures.

In addition to the monetary awards, the following sabbaticals will be offered:

20 years = 5 days 25 years = 10 days 30 years = 15 days

These must be taken with the anniversary year and in one complete block. They will not be available to carry over.

For every 5 year anniversary after 30 years, the Associate will benefit from the 30 year award and sabbatical again.

5.9

Professional Subscriptions

As the Company intends to develop and maintain the highest standards of expertise and professionalism, we will refund subscription payments for membership of up to two recognised professional bodies, subject to prior agreement by Associate’s Managers. These bodies must be directly related to the Associate’s job. Subscriptions may be claimed annually through the normal expense procedure, including either a copy of the appropriate invoice or receipt. However CII subscriptions will be paid for via the Associate Development Division subject to prior agreement by the Associate’s Manager.

Ancillary costs associated with membership of professional bodies will not be reimbursed.

5.10

Tax and Liability on Benefits

Associates should be aware that certain benefits provided by the Company may be regarded by the Inland Revenue as remuneration, and are therefore liable to pay tax on their value. The contributions the Company makes to the pension scheme on Associates behalf are an exception to this rule, as is covered under the Company’s Life Assurance and Permanent Health Insurance policies.

Tax due on the value of private medical insurance is taken directly from the payroll and so does not require a P11D or need reporting on any Self-Assessment tax returns.

You will receive a P11D if you receive any taxable benefits (with the exception of private medical insurance) during the tax year. The information provided to the Inland Revenue on their form P11D will be used to compute the amount of tax that an Associate should pay. P11D’s are usually issued by the beginning of July. Please note that due to the private medical benefit being taxed via the payroll, the majority of associates will not receive a P11D.

5.11

Self-Assessment

Under the Self-Assessment legislation, which took effect in April 1996, all Associates are strongly advised to keep the following records for at least three years:

P60



Payslips



P11D



Failure to produce this information at the request of the Inland Revenue can result in late payment fines. If your total income exceeds £100k, you will be required to register and complete an annual Self-Assessment.

6

ABSENCE FROM WORK

6.1

Holiday *

The holiday year runs from 1st May to 30 th April. All Associates are required to book their annual leave through the HR Self Service site.

The holiday entitlements are as follows

Position

1st Year Entitlement

Holiday Entitlement (after ‘x’ years’ service) 3yrs 6yrs 10yrs

Associate

24

25 26 28

AVP

25

26 27 28

VP

26

27 28 29

SVP

27

28 29 30

PARTNER

30

_______________________________

Increased entitlement is effective from the holiday year in which the service is completed. However, should an Associate leave before their anniversary is achieved this will not be included in their accrued holiday entitlement.

Once a year, Associates will be given the opportunity to purchase up to a maximum of 5 additional days holiday. Part-time Associates are able to apply for their pro rata equivalent.

The Company will honour holiday commitments for the year in which an Associate joins the Company, provided this has been mutually agreed before commencing employment. However, any days in excess of the above entitlement will be given at the discretion of Managers and will be without pay.

If Associates join the Company partway through a holiday year they will be eligible for pro- rata holiday entitlement for each complete month worked, based on the scale below:

Holiday Entitlement

Holiday Entitlement

Holiday Entitlement

Holiday Entitlement

First COMPLETE Month Of Work

24 Days

25 Days

26 Days

27 Days

May June July

24 22 20 18 16 14 12 10

25 23 21 19

26 24

27 25

21.5 19.5 17.5

22.5

August

20 18

September

16.5 14.5 12.5 10.5

October

15 13 11

15.5 13.5

November December January February

11

8 6 4 2

8.5

8.5 6.5 4.5

9

6 4 2

6.5 4.5

March

April

2

2

Part-Time Associates

Associates whose standard contractual hours of work are less than 35 hours per week will receive a pro-rata holiday entitlement. This will depend on individual work patterns that are based on the entitlements listed above. The entitlements increase with length of service. They will also receive a pro-rata Public Holiday entitlement, please see section 6.3 below.

Birthday leave

The Company also allows Associate to take an additional day’s paid leave in recognition of their birthday. This extra day was approved by the Company so that Associates can spend time with friends and family to celebrate on or around their birthday. As with all holidays, this leave needs to be agreed with an Associate’s Manager and must be taken either on the birthday or during the 7 day period in which the birthday falls. This “birthday leave” cannot be carried forward and if it is not taken during the allotted period then it will be forfeited. There will also be no pay in lieu if the day is not taken as leave. Associates must agree the dates on which they wish to take holiday with their Manager as early as is reasonably possible before making any arrangements. The Company reserves the right to refuse a request for holiday if it is at a time inconvenient to the business. A holiday of more than two consecutive weeks will require the permission of the Head of the Division. Holidays should not be carried forward to the following year. However, if business conditions prevent Associates from taking their full entitlement in the holiday year (1st May to 30 th April), they may, with the agreement of their Manager, carry forward up to one and a half days holiday. This must be taken in the first quarter of the following holiday year. 6.2 Holiday Arrangements *

Pay in-lieu of holiday will not be given for any annual holiday entitlement Associates are unable to use up during the holiday year.

6.3

Public Holidays *

Associates are entitled to annual Public Holidays in addition to their annual holiday.

Where a Public Holiday falls on a Saturday or Sunday the following Monday will be observed as a Public Holiday.

Part-time Associates

If an Associate works part-time they will be given a pro rata public holiday entitlement.

When a Public Holiday falls on one of the Associate’s normal working days this will be deducted from their Public Holiday entitlement. Please see example below:

A part-time Associate works 3 days per week on Monday, Tuesday and Wednesday.

This Associate would be entitled to 14.5 days holiday entitlement and 5 days Public Holiday entitlement.

Any Public Holidays that fall on a Monday, Tuesday or Wednesday will be deducted from their Public Holiday entitlement. If the Associate does not have enough Public Holiday allowance to cover the number of Public Holidays that fall on their normal working days then this will be deducted from their holiday entitlement. Any surplus Public Holiday entitlement can be used at any other time within that holiday year.

Part-time Associates who have a work pattern of 5 days a week where the same number of hours are worked each day can count their leave in the same way as full- time Associates.

The following link shows the Public Holidays for England, Wales, Northern Ireland, Scotland and Eire.

There are eight permanent public holidays in England and Wales, nine in Scotland and ten in Northern Ireland.

http://www.direct.gov.uk/en/Governmentcitizensandrights/LivingintheUK/DG_073741

6.4

Leaving Employment *

If an Associate leaves the Company they will receive holiday entitlement on a pro-rata basis according to the number of full calendar months they have completed in the holiday year. If they leave the Company on or after the 28 th of the month they will receive holiday entitlement for that month. The Company reserves the right to require Associates to take (or not to take) any unused holiday entitlement during any period of notice that has been given either by the Company or the Associate. If the Company does not exercise this right, then on leaving the Company’s employment, Associates will be paid a sum equivalent to the value of any unused holiday to which they are entitled after deductions of tax and national insurance contributions. This will be paid at 1/260 th annual basic salary (pro-rata for part-timers) per unused days. Holiday taken in excess of Associate’s accrued entitlement as at the termination date will be recovered from any payments due. Lockton has no fixed retirement age. The Company acknowledges that retirement is a matter of choice for individuals and will not pressurise Associates into resigning because they have reached, or are approaching, a certain age. Associates are free to retire whenever they choose or to seek alternative roles or working patterns. We are proud to employ people of all ages and consider that age diversity is beneficial to the organisation. We are committed to not discriminating against employees because of age and adhere to the principles set out in our Equal Opportunities Policy. Associates or their Manager may want to discuss your short, medium and long-term plans, as the need arises. The Company needs to plan for the business, and so may indicate from time to time that it would be helpful to know what Associates’ plans are. There is no obligation for us or you to hold workplace discussions about your future plans, but it may be mutually beneficial to do so. No accrued holiday pay will be due if Associates leave before a mutually agreed leaving date. 6.5 Retiring Associates

Lockton will not make generalised assumptions that performance will decline with age, whether due to competence or health issues. If there are problems with Associates’ performance or ill-health, these will be dealt with in the usual way, through the usual policies.

6.6

Giving notice of retirement

If an Associate does decide to retire the Company would appreciate as much notice as possible, although Associates should give the Company at least the notice they are obliged to give under their Contract of Employment.

6.7

Sick Pay Entitlement

In any one continuous period of twelve months, salary will continue to be paid during a period of sickness either through Statutory or Company Sick Pay or a combination of both on the following basis:

Statutory Sick Pay

Provided that Associates comply with the relevant statutory rules and the rules relating to notification and evidence of illness, the Company will pay Statutory Sick Pay (SSP) on behalf of the Department for Work and Pensions (DWP) for a continuous period of sickness up to 28 weeks. SSP is subject to tax and National Insurance contributions. The amount of SSP Associates are entitled to depends on the average earnings in the eight weeks preceding the first day of sickness absence.

Beyond 28 weeks, the DWP is responsible for paying SSP and the Company will give Associates a transfer form to enable them to claim benefit direct from the DWP.

Company Sick Pay

Provided Associates comply with the notification and evidence requirements set out in 6.8 below and have 6 months' continuous service with the Company, they may be entitled to receive Company Sick Pay of full pay up to a maximum of 26 weeks in any complete calendar year which shall include any entitlement to SSP. Company Sick Pay is an entirely discretionary entitlement and will be awarded at the discretion of the Company on a case by case basis. If Associates are absent in excess of 26 weeks in any complete calendar year, any such discretionary Company Sick Pay will be exhausted and they will receive SSP only for the remaining 2 weeks or cover may be available under the terms of the Group Income Protection Scheme (GIP) as described in section 6.9.

6.8

Procedure for Sickness or Injury Notification *

In order to qualify for SSP and Company Sick Pay, there are certain procedures Associates must follow. If Associates are unable to attend work because of sickness or injury, their Manager must be notified of the reason for their absence as early as possible on the first day of absence and in any event no later than 09:00am. Associates are required to telephone their manager. Texts and emails are not acceptable unless otherwise agreed.

Associates must give the following information:

 the nature of the sickness or injury;

 the date on which the sickness started or injury occurred; and,

 the date expected to return to work.

For Absence of 1 to 7 Consecutive Days:

Associates must continue to regularly update their Manager of their illness and when they expect to return to work. Upon their return to work Associates must enter their absence on the HR Self Service Site.

For Absence of More Than 7 Consecutive Days:

If an Associate’s absence extends to eight or more consecutive days (including weekends and public holidays), they must obtain a medical certificate from their doctor and they should send this to their Manager. Associates should forward further medical certificates to their Manager as the previous one expires. The Company asks Associates to inform their Manager of any progress at least once a week.

Upon returning from their period of absence, the Associate must enter the dates on to the HR Self Service Site as well as scanning a copy of their doctor’s certificate on to the system.

The law requires the Company to satisfy itself that the proper procedures are followed before SSP can be paid. Therefore Company Sick Pay and SSP may be withheld and disciplinary action taken if, without good reason, an Associate:

 is late notifying their absence, i.e., they do not notify their Manager of their absence on the first day of absence; or

 fail to provide adequate evidence of sickness, as outlined above; or

 where a Manager is not satisfied that the absence was genuinely due to sickness

If Associates are absent through sickness or injury for more than five days in any twelve month period the Company reserves the right to require a medical certificate for each and every day of absence through sickness or injury for the following twelve months.

The Company may, at any time in operating this policy, ask Associates to consent to a medical examination by a Doctor nominated by the Company at its expense.

Associates will be asked to agree that any report produced in connection with any such examination may be disclosed to the Company and that the Company may discuss the contents of the report with our advisers and the relevant Doctor.

Return to Work Interviews

Upon their return to work from a period of absence of any length, Associates may be required to report to their Manager for a return to work interview. A copy of this may be passed to the Human Resources Division.

The return to work interview guidelines for Managers and the relevant forms can be found on LockDocs within HR Forms.

Sickness Reporting

If Associates report sickness during a holiday period, they may be permitted to take the same number of days holiday at a later date as agreed with their Manager. Associates must provide a medical certificate immediately upon their return to work to support the whole period of illness, even if the illness occurred during the first seven days of their holiday.

6.9

Group Income Protection

All Associates are covered by the Company's Group Income Protection scheme (GIP), subject to the terms and conditions applicable to any such insurance from time to time and to the insurer accepting the Associate for cover under the policy and at normal rates. Should an Associate require further information on the GIP scheme, they should contact the HR department. If the scheme provider (including but not limited to any insurance company) refuses for any reason (whether based on its own interpretation of the terms of the insurance policy or otherwise) to provide any benefits to the Associate or where appropriate their spouse or children) the Company is not liable to provide any replacement benefit of the same or similar kind or compensation in lieu of such benefit.

The provision of this benefit is without prejudice to the Company's right (at its discretion) to terminate the Associates employment due to ill health or otherwise.

6.10

Hospital/Doctor/Dentist/Ophthalmic Appointments

Time off, with pay, may be granted to Associates with their Manager’s discretion for any of the appointments mentioned above. Associates should consult with their Manager as soon as possible before making an appointment. The Company may require sight of the appropriate appointment card.

6.11

Performance Of Public Duties

Jury Service

If Associates are called upon to perform Jury Service, which is a statutory duty, they should notify their Manager immediately of the dates involved. Associates will receive a form from the Court that they are to attend (Certificate of Loss of Earnings or Benefit), which they should pass to the Payroll Division for completion as soon as possible. Once completed, Associates must hand this form to the Court on their first day of service. There is no loss of earnings whilst on jury service, however, a deduction will be made from an Associates salary to offset any monies, which they may receive from the Court for loss of earnings. Once the Jury Service has come to an end, Associates must provide the Payroll Division with a copy of their payment receipt from the court and the Payroll Division will deduct the loss of earnings element from their next salary.

On days when Associates are not requested in court they will normally be expected to come into work.

The Payroll Division will ask Managers to confirm the dates that Associates attended Jury Service and a copy of the payment receipt must be provided to the Payroll Division within two months of completing the Jury Service.

Public Duties

Reasonable paid absence of leave will be given to Associates to undertake public duties should they be required to be absent from work in this capacity, provided that there is no adverse impact upon their work performance.

If Associates are involved in any such public office service, including military service such as the Territorial Army, they must advise their Manager.

The Company reserves the right to refuse to agree a request if in its absolute discretion considers that it would be too disruptive to the business (either in terms of the proposed length of absence or the role of person requesting it).

Territorial Army/ Royal Naval Reserve

If Associates are a member of the Armed Forces Reserve and are required to undertake Reserve/Military training they may claim additional paid holiday, up to a maximum of five days in any one holiday year, to attend a block of training. Associates must inform their Manager in advance of the dates they are required to attend and provide the relevant service documentation to the Human Resources Division.

If the training exceeds five working days, Associates may take up to a further five days from their annual holiday entitlement.

6.12

Compassionate Leave

The Company will grant paid absence for emergency reasons such as a bereavement or serious illness in immediate family for up to five days in any twelve month period at the discretion of an Associate’s Manager and or Partner responsible for that Division.

6.13

Maternity Leave And Pay

All pregnant Associates have legal entitlements regardless of their length of service with the Company. These include reasonable paid time off for antenatal classes, and protection against unfair dismissal on maternity related grounds.

Maternity Benefits*

All pregnant Associates are encouraged to inform their Manager of their pregnancy as soon as possible and in any event no later than 15 weeks before the Expected Week of Confinement (EWC) so that the maternity leave entitlements and notification obligations may be discussed and any health or safety issues be addressed. The table below summarises the Company’s maternity benefits (Dependant on the Associate’s length of service at the 15th week before the EWC):

If length of service is less than 2 years at the 15 th week before the EWC the following benefit will apply:

Less than 26 weeks service

More than 26 weeks service Up to 39 weeks Statutory Maternity Pay which is currently £145.18 per week for up to 39 weeks. In addition Lockton will top up your maternity pay, creating a total package of;

May be entitled to Statutory Maternity Allowance. 

Currently £145.18 per week for up to 39 weeks

20 weeks at full pay, plus 19 weeks at 50% pay

 

(Inclusive of SMP) All enhanced company maternity pay will cease with immediate effect in the event that your employment ends during your period of maternity leave (OML or AML.)

Ordinary Leave Plus Additional Leave Up to 13 weeks

Ordinary Leave Plus Additional Leave Up to 13 weeks

If length of service is more than 2 years at the 15 th week before the EWC the following benefit will apply:

More than 2 years’ service Up to 39 weeks Statutory Maternity Pay which is currently £145.18 per week for up to 39 weeks.

In addition Lockton will top up your maternity pay, creating a total package of;

25 weeks at full pay, plus 14 weeks at 50% pay

 

(Inclusive of SMP)

All enhanced company maternity pay will cease with immediate effect in the event that your employment ends during your period of maternity leave (OML or AML.)

Ordinary Leave Plus Additional Leave Up to 13 weeks

The Associate must provide the Company with the following information in writing no later than 15 weeks before EWC:

confirmation of her pregnancy



 the date on which she wants her maternity leave to start; and

the EWC



The Associate should also ensure that she encloses form MATB1 when she provides these details or as soon as she receives it from her Midwife.

Starting Maternity Leave

The earliest date an Associate can start maternity leave is 11 weeks before the EWC (unless the child is born prematurely before that date).

The Associate must notify the Company of the intended start date in accordance with the paragraphs above. The Company will then write to the Associate within 28 days to inform the Associate of the date the Company will expect the Associate to return to work if she takes her full entitlement to maternity leave. The Associate can postpone or bring forward her intended start date by informing the Company in writing at least 28 days before the original intended start date, or if that is not possible, as soon as reasonably practicable. If the Associate is absent for a pregnancy-related reason during the 4 weeks before the EWC, she must let us know as soon as possible in writing. Maternity leave will be triggered unless both parties agree to delay it. If the Associate gives birth before her maternity leave was due to start, she must let the Company know the date of the birth in writing as soon as possible as Maternity leave will commence from that day.

The law prohibits the Associate from working during the 2 weeks following childbirth.

Ordinary Maternity Leave (“OML”)

OML will last for the first 26 weeks of maternity leave.

Additional Maternity Leave (“AML”)

AML will begin at the end of the OML and lasts for a further 26 weeks.

Statutory Maternity Pay (SMP)

SMP will last for 39 weeks and is inclusive of any Lockton enhanced payment. This is applicable to women with 26 weeks length of service at the 15 th week before the baby is due. Those with less service may be entitled to maternity allowance.

Returning to work after Maternity Leave

If an Associate wishes to return to work before the end of the OML or AML period, she must give the Company at least 8 weeks advance written notice specifying the date of her proposed return. If an Associate fails to give the required notice the Company can delay her return work until the earlier of 8 weeks from the notice and the end of her OML or AML period.