Localism Act 2011

38 Pay policy statements

(1) A relevant authority must prepare a pay policy statement for the financial year 2012-2013 and each subsequent financial year.

(2) A pay policy statement for a financial year must set out the authority’s policies for the financial year relating to—

(a) the remuneration of its chief officers,

(b) the remuneration of its lowest-paid employees, and

(c) the relationship between—

(i) the remuneration of its chief officers, and

(ii) the remuneration of its employees who are not chief officers.

(3) The statement must state—

(a) the definition of “lowest-paid employees” adopted by the authority for the purposes of the statement, and

(b) the authority’s reasons for adopting that definition.

(4) The statement must include the authority’s policies relating to—

(a) the level and elements of remuneration for each chief officer,

(b) remuneration of chief officers on recruitment,

(c) increases and additions to remuneration for each chief officer,

(d) the use of performance-related pay for chief officers,

(e) the use of bonuses for chief officers,

(f) the approach to the payment of chief officers on their ceasing to hold office under or to be employed by the authority, and

(g) the publication of and access to information relating to remuneration of chief officers.

(5) A pay policy statement for a financial year may also set out the authority’s policies for the financial year relating to the other terms and conditions applying to the authority’s chief officers.