Injury awards policy

Policy overview

This policy sets out consideration of a financial award where an employee: 

• dies whilst carrying out their work 
• or, sustains an injury as a result of carrying out their work, resulting in a permanent disability 

We may make discretionary interim payments allowing compensation to be given. This may be at an early date where the outcome of the injury is not yet known. We will take such payments into account when we make the final payment. 

We reserve the right to take into account any award arising from civil proceedings. We may consider this in whole or in part. 

Injury awards scheme

Loss of employment on permanent disablement 

An annual allowance plus a lump sum of £25,000 is payable if employment ceases due to: 

• an injury that results in permanent, total disablement, and
• an injury that prevents an employee from carrying out their usual profession or occupation 

An annual allowance plus a lump sum of £12,500 is payable if employment ceases due to:

• an injury that results in a partial disability through the total loss or use of: 
  • one or more hands or feet 
  • or, sight in one or both eyes 

We will determine the amount of the allowance. This is subject to a maximum of 85 per cent of the person's annual rate of pay. 

Reduction in pay on permanent disablement 

Where employment continues, but there is a permanent reduction in pay, an employee will be entitled to: 

• an annual allowance 
• a lump sum of £12,500 

We will award this where there is a permanent total or partial disablement through: 

• the loss, use or severance of one or more hands or feet 
• the total loss of sight in one or both eyes 

The allowance and current pay together must not exceed the pay, which would have been given if the injury had not happened. 

Permanent disablement without loss of either employment or earnings 

An employee is entitled to a lump sum of £12,500 if: 

• they become permanently disabled (fully or partially) through the total loss or use of one or more hands or feet 
• or, they experience a complete loss of sight in one or both eyes but suffers neither loss of employment or earnings  

Death 

Where a person dies as a result of the injury sustained whilst working, their estate will be entitled to a lump sum of £25,000. 

Their spouse, civil partner or nominated co-habiting partner will be entitled to an annual allowance. Their dependents will be eligible for an annual allowance.   

The allowance paid to a spouse, civil partner or nominated co-habiting partner ends after: 

• re-marriage 
• registration of a new civil partnership 
• a new co-habiting partner 

For further details, read the Local Government Pension Scheme Regulations. 

Determination of allowances 

We will take all circumstances of the case into account, including: 

• any right to relevant benefit under Department of Work and Pensions legislation 
• any other statutory right to benefit or compensation 
• any right to receive pension benefits 
• any damages recovered and any sum received under a contract of insurance paid for by the employer 
• any sum received in respect of liability claims against the employer 

Allowances table 

We calculate annual pay based on the rate of remuneration. This includes emoluments of the post where the employee is no longer employed.   

We will take an average of any fluctuating elements. We will take retrospective pay awards into account. We will ignore any reduction in pay caused by absence through incapacity. 

Injury awards procedure

Employees or managers should report all accidents immediately via the First Notification of Loss Form (formerly PO3 form).  You can find the form on our intranet.  

If necessary, they should notify the Health and Safety Executive via the Reporting of Injuries, Diseases and Dangerous Occurrences Regulations (RIDDOR). 

Managers should take some responsibility for ensuring that a claim is made in appropriate cases. 

Any claim for an injury award allowance should be made to the head of service of the employing director area. The head of service will determine the facts and submit the claim to the head of HR. They will then consider the claim. 

If the scheme does not apply to the claim, then we will give a formal notice of refusal. 

All claims within the scheme are referred to our medical adviser to review: 

• if the person is disabled and prevented from carrying out their current employment 
• if the disability is permanent or temporary 
• if the disability will cause a permanent loss of employment or a permanent reduction in earnings 
• and, assess how the employee's earning capacity has been affected as a result 

We will give an annual allowance as a percentage of annual pay.  

When considering the amount, we will take some payments from the allowance: 

• pension entitlement and, where applicable, associated lump sum (expressed as an annuity) 
• benefits payable under current Department of Work and Pensions legislation which result from the injury 
• amounts payable in respect of liability claims against the employer 
• any amount recovered arising from a claim for damages which is attributable to loss of earnings 
• any other payment arising out of and attributable to the injury (other than any lump sum payable under this scheme)

Right of appeal

If an employee is not satisfied, they may appeal to the executive director of the director area. They must do this by writing and within ten working days of receipt of the outcome of the claim. 

An independent executive director not previously involved in the matter must hear the appeal. The appeal will be attended by: 

• the executive director hearing the appeal 
• the employee 
• the employee's representative 
• the head of HR 
• an HR representative  

The executive director will consider all the circumstances of the case. This includes any contributory negligence on the part of the person concerned. They will recommend an award for implementation. In appropriate cases, they may need to refer the matter to the finance and resources committee. 

The decision of the executive director hearing the appeal is final. They will notify the employee and head of HR of the outcome within five working days of the meeting. 

Appeal against process   

There is a right of appeal under the internal dispute resolution procedure. An employee may appeal against the process in relation to entitlement under the provisions of the Local Government Pension Regulations. They may not appeal against the amount. 

Review of arrangements

We will review annual allowances at least once a year. This may differ if we receive medical advice that less frequent or no further assessments are required. We will decide if there is a material change in the employee's earnings capacity. 

We will review annual allowances when the recipient reaches their normal retirement age and fixed as a lifetime benefit. This is as defined by the Local Government Pension Scheme, accounting for any pension entitlement. 

Funding 

We will meet the costs of lump-sum payments and annual allowances from director area budgets.