On 9 May 2024, the government brought into force the Trade Union (Deduction of Union Subscriptions from Wages in the Public Sector) regulations. Commonly known as ‘DOCAS’, these regulations govern how employers can recoup the administrative costs of “check-off” (the system where employee union subscriptions are paid directly through the employer’s payroll) from unions.
Aim of the DOCAS regulations
The primary aim of the DOCAS legislation is to ensure that taxpayer-funded public bodies do not bear the cost of administering check-off subscription fees for unions. This shift aims to relieve public funds from covering these administrative expenses.
In December 2023, the government published helpful guidance for employers to better understand and implement the DOCAS regulations which can be accessed here.
Who is a relevant public sector employer?
The DOCAS regulations apply to organisations funded wholly or mainly by public funds. These include, but are not limited to:
• Local Authorities
• NHS
• Maintained Schools and Academies
• Police Staff
• Most UK Government departments
• Scottish Ministers
Legal obligations for public sector employers
If you are a public sector employer, you must comply with DOCAS regulations. Employers can only make deductions from their workers’ for trade union subscriptions if:
i. Your workers have the option to pay their trade union subscriptions by other means
ii. Arrangements have been made for the trade unions in question to make reasonable payments to the employer that cover the costs of making the deductions.
Ensuring alternative payment methods
To comply with the requirement that workers have the option to pay their trade union subscriptions by other means, employers should:
• Request written confirmation from all trade unions about the available mechanisms for paying subscriptions.
• Check union websites to see if there are alternative arrangements readily available to staff.
• Write to trade unions to request notification if they plan to remove any alternative payment mechanisms, such as no longer accepting direct debit payments.
Liaising with and charging unions
To arrange for unions to make reasonable payments to cover the costs of making payroll deductions, employers should:
• Assess the cost incurred by administering check-off (including internal admin time and arrangements with third party suppliers).
• Inform unions of the cost and calculations made to arrive at that figure, including how this will be apportioned between multiple recognised unions.
• Provide unions with the opportunity to comment.
• Aim to reach an agreement within a reasonable period.
Once an agreement is reached, employers can then make arrangements for payment, such as issuing a monthly invoice or agreeing on a percentage reduction from the collected union subscription fee.
No administration costs: what should you do?
If, after reviewing the DOCAS regulations and guidance, and considered all other potential costs, an employer concludes that there is no cost to public funds for administering the payroll deductions, they do not need to charge a fee to the unions. This decision should be reviewed on a regular basis – we advise that annually would be sufficient.
Regular review of the position
Regardless of whatever arrangement employers come to, be it charging for check-off administration or not, employers need to regularly review their position. This ensures that any check-off costs recharged to trade unions remain substantially equivalent to the cost to the taxpayer of administering check-off. Regular reviews ensure compliance with the spirit and requirements of the legislation.
Need further assistance?
If you have any further queries arising from this or any other matter, please do not hesitate to contact us.
