NB    I am not authorised to give financial advice and none is included in the pack.

        The pack is for guidance only and is not advice.  I accept no responsibility for anything that anything anyone does or does not do as a result of reading or using the pack, unless I have accepted instructions to advise.

A version of this pack and more AE and employment related  pension documents with explanatory footnotes (not included in the above) are available in Kelly’s Legal Precedents 21st edition with the 2015 supplement: see the link below.

http://www.lexisnexis.co.uk/store/uk/Kellys-Legal-Precedents-21st-Edition-and-CD/product

 

 

11     agreement varying terms for salary sacrifice

 

THIS AGREEMENT is made on (date)

between:

A      (name) Ltd (company (number)) whose registered office is at (address) (‘Employer’);

B      (name) of (address) (‘Employee’).

 

definitions

1      In this document the following terms have the following meanings.

‘Employment Contract’

means the contract of employment dated (date) made between the Employer and the Employee.

‘Salary’

means the Employee’s annual salary payable under the Employment Contract which immediately before the date of this agreement was  £(amount).

(either, example 1)

‘Vouchers’

childcare vouchers equal in value to the amount of the Reduction.

‘Reduction’

£(amount) per month.

(or, example 2)

‘Pension Scheme’

means the pension scheme known as (name).

‘Qualifying Earnings’

has the meaning given to it from time to time by s13 of the Pensions Act 2008.

‘Reduction’

means an amount equal to the following percentages of the Employee’s Qualifying Earning in he following periods:

-     1% before  1 October 2017;

-     3% after 31 September 2017 and before 1 October 2017; and

-     5% after 30 September 2018.

 

agreement

2      The Employer and the Employee alter the Employment Contract with effect from the date of this agreement as follows:

(a)       the Employer shall reduce the part of the Employee’s emoluments which consists of the Salary by the Reduction and, on each monthly pay day, pay the monthly amount of the Reduction to the Scheme;

(b)       the Employer shall add to each payment to the Scheme under sub-paragraph (a) above the amount of the saving of the National Insurance Contributions resulting in each month from the reduction of the Salary under that sub-paragraph; and

(c)       for the purpose of establishing the Employee’s right to or calculating the amount of his other emoluments or benefits relating to his employment, the Salary is deemed not to have been reduced.

 

termination

3      Either party may terminate this agreement by not less than one month’s written notice to the other.

 

signed

 

 

 

(name)

 

(name)

authorised signatories of the Employer

 

 

 

(name) of employee