Most relevant to colleagues in CRCs, Parent and Supply Chain Organisations
If you have Dual Contracts (more than one contract)
The below FAQs are some of the questions you may have if you are employed on more than one contract.
I already have a permanent role within HMPPS but also have a secondary role in scope to transfer to HMPPS (NPS) - both roles are the same grade. How will this be handled upon transfer?
Where an individual has a secondary role in scope to transfer which mirrors their primary role (within the NPS) in all respects (meaning the same area of the organisation, pay band and role profile) and the only difference is a different location or business unit, we will merge contracts into one contract to include the additional hours (currently undertaken within the transferring role). Your employee record will be amended to indicate a secondary workplace/dual location (if applicable).
In this scenario you would retain only one employee record and have a singular pay arrangement covering both roles.
I already have a permanent role within HMPPS but also have a secondary role in scope to transfer to HMPPS (NPS) – both roles are different with different pay grades. How will this be handled upon transfer?
Your transferring role will be linked to your current employee record to show:
- your current permanent primary NPS role
- a secondary ‘assignment’ – your transferring role.
Individuals will be paid as per normal pay arrangements but will receive separate payments (and pay slips) for each role.
Please see the information below about how this might affect you National Insurance, Tax and Pension.
Q – How will tax be calculated?
A – Where an employee has two taxable employments, it is usual for the second employment to be taxed at basic rate under the emergency BR code, the reason being that otherwise if both employments were taxed as the sole employment the employee would receive their personal allowance twice and owe a significant amount of tax at the end of the tax year.
Q – How will National Insurance deductions be calculated?
Where your weekly income is above the threshold to pay National Insurance Contributions (NICs), the threshold is currently £184 per week for 2021/22 tax year, you will have to pay Class 1 NICs.
If your weekly earnings for both jobs is above the threshold, you will pay Class 1 NICs on both jobs.
Q – Will there be two separate pension schemes or will earnings from both salaries contribute to a single pension scheme?
A – Where there are two separate contracts of employment, there will be two separate pension memberships.
The total contracted hours for my two roles add up to more than the HMPPS (NPS) 37 hours per week contract – will my current arrangement be honoured?
Employees may voluntarily opt out of the average aggregate 48 hours per week under the Working Time Regulations (WTR), however, HMPPS retain a duty of care for employees’ wellbeing.
Where individuals do opt out, line managers are responsible for ensuring the health and safety of individuals in accordance with statutory obligations and nonetheless must monitor the hours that individuals work to ensure they remain fit and well enough to perform their duties and give due consideration to the individual’s general welfare and wellbeing.
Will I be classed as having two contracts of employment for Pension & National Insurance Purposes?
Yes, if you have two differing roles/bands.
Please see the information below about how this might affect you National Insurance, Tax and Pension.
Q – How will tax be calculated?
A – Where an employee has two taxable employments, it is usual for the second employment to be taxed at basic rate under the emergency BR code, the reason being that otherwise if both employments were taxed as the sole employment the employee would receive their personal allowance twice and owe a significant amount of tax at the end of the tax year.
Q – How will National Insurance deductions be calculated?
Where your weekly income is above the threshold to pay National Insurance Contributions (NICs), the threshold is currently £184 per week for 2021/22 tax year, you will have to pay Class 1 NICs.
If your weekly earnings for both jobs is above the threshold, you will pay Class 1 NICs on both jobs.
Q – Will there be two separate pension schemes or will earnings from both salaries contribute to a single pension scheme?
A – Where there are two separate contracts of employment, there will be two separate pension memberships.
How will my Line Management be handled if I have two roles?
Depending on your dual roles, you may be assigned two managers, appropriate to your area of work.