Dessie Ellis (Dublin North-West, Sinn Fein)
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1875. To ask the Minister for Children, Disability and Equality to outline the reason for deductions made to pay for persons (details supplied); and if she will make a statement on the matter. [44694/25]

Norma Foley (Kerry, Fianna Fail)
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Thank you for your enquiry about the Technical Adjustment Payments applied to public service employees transferring from the National Educational Welfare Board’s (NEWB) payroll systems to the Tusla - Child and Family Agency payroll.

I am advised that when Tusla was established on 1 January 2014 it brought together over 4,000 staff who were previously employed within Children and Family Services of the Health Service Executive (HSE), the National Educational Welfare Board (NEWB), and the Family Support Agency (FSA). The National Educational Welfare Board was renamed the Educational Welfare Service (EWS) when it was subsumed into Tusla. The establishment of Tusla encompassed the move of staff from ten different payrolls with a number of different pay frequencies onto a single standard payroll.

Staff from the HSE transferred to the newly established Tusla payroll on 1st January 2014. Staff from NEWB and FSA continued to be paid on their respective payrolls until December 2014 at which point, they were transferred to the Tusla payroll.

The payment of a Technical Adjustment Payment is a standard agreed method with Trade Unions applied across the public service sector for employees transferring payroll frequencies to bridge payroll gaps. Technical Adjustment Payments have never been referred to, considered or reported by Tusla as overpayments and must be repaid by any employees that receive such a payment.

In advance of the transfer to the Tusla payroll, there were multiple communications to all employees, including those who transferred from the NEWB, and who were encompassed by the Technical Adjustment Payment. The communications in respect of the Technical Adjustment Payment specified that it was not a cash advance and it was not a loan and must be repaid and expressly provided that “.... it must be repaid on leaving/retirement and will be recouped from your final salary”. Staff did not have to sign acceptance, but many communications and presentations were given to staff, and these communications continue to be provided to remaining staff in relation to this payment.

Prior to the transfer to the Tusla payroll system. NEWB staff were paid fortnightly on a Thursday for days worked up to and including the pay date and one day in advance, i.e. the Friday. The move to the Tusla payroll meant that NEWB staff continued to be paid fortnightly on a Thursday, but not up-to-date and one day in advance as per the NEWB payroll, but 11 days in arrears in line with the Tusla payroll. To ensure that NEWB staff were not disadvantaged by the move of payroll, a “Technical Adjustment Payment” was made to employees to ensure there was no gap in pay while aligning the payroll and pay dates, i.e. aligned to 11 days in arrears and continuing to be paid fortnightly thereafter. Table 1 below outlines the schedule of pay dates for the staff members transferring payrolls.

Staff moved to Tusla HR/Payroll on 20.12.2014. Tusla fortnightly salary for period 08.12.2014 to 21.12.2014 had a pay date of 01.01.2015. In this pay EWS staff were paid for 20.12.2014-21.12.2014 plus 12 days technical adjustment to bridge the gap to next pay date on 15.01.2015 for days worked between 22.12.2014 to 04.01.2015.

Table 1: Schedule of pay dates for staff members transferring payrolls

The move to Tusla HR/Payroll meant that EWS staff continued to be paid fortnightly on a Thursday, but the working dates in their fortnightly salary changed, the Technical Adjustment Payment was a notional payment to ensure that there was no cashflow disadvantage to employees as a result of moving pay periods or as a result of any tax implications that may arise.

In essence the Technical Adjustment Payment from 01.01.2015 meant that staff received their usual fortnightly amount even though the revised pay period covered two working days that had not already been covered in a previous payment. 12 notional days were added to achieve this. The pay received on 15.01.2015 then paid those staff for the actual days worked. At that point it can be seen that the Technical Adjustment Payment ensured staff had no cashflow problems or disruption to their income but also that 12 days of work had been double remunerated.

The payment of a Technical Adjustment Payment is a standard agreed method with Trade Unions applied across the public service sector for employees transferring payroll frequencies to bridge payroll gaps and this process has been in operation through all payroll frequency changes throughout the HSE and Tusla for many years.

The NEWB staff were advised of the impact to them at the time by means of a number of communication methods including staff presentations, organisational memos, and individual letters explaining the process, payments and amounts to them. NEWB staff were also informed that they could choose to repay the Technical Adjustment Payment at the time of the payment was made or at any time throughout their employment. Those who chose not to repay it at the time or throughout their employment were notified that it would be recouped by Tusla upon the staff member leaving or retiring from the Agency.

Tusla to date, has recouped all Technical Adjustment Payments that remained unpaid by staff members upon leaving or on retiring from the agency, this payment has been recouped through deductions from their final Tusla salary payment.

Any changes to how these Technical Adjustment Payments are applied across the public service sector would have a significant impact on the Public Service payroll administrator’s ability to recoup any outstanding payments from staff members as they leave or retire.

This issue of payment and recoupment of a technical adjustment payment was raised by a former employee of the NEWB and progressed through the WRC, Labour Court and High Court, all of which confirmed the payment and recoupment of Technical Adjustment payment occurred and recoupment was warranted.