Accommodation - Spirit Pub Company

1 Accommodation Policy Department Human Resources Policy Owner Debbie Moore (HR Director). Policy Title Accommodation Policy Version Replaces V2 September 2009. Issue Date May 2011. Contact Name Head of HR and HR Business Partners 1. Policy Statement The purpose of this policy is to provide guidance on the rules and regulations that are in place for all employees who manage or reside in Company provided Accommodation . The provision of Accommodation cannot be guaranteed and will only be available where it is deemed to be of commercial benefit to the better operation of the business. 2. Scope This policy will apply to all salaried and hourly paid employees of Spirit Pub Company living in Company provided Accommodation . 3. Policy Details Accommodation Definitions Company Accommodation referred to in the policy includes all Accommodation that is provided by the Company in relation to employment. Definitions of Accommodation include: On-Site - any Accommodation located above or attached to the pub.

2 Freehold - property owned by the Company that may be situated within the grounds of the pub or nearby. Rented property that is privately rented by the Company and used to provide Accommodation for employees. Houses of Multiple Occupation (HMO's) - are currently defined as properties with three or more floors, not including an uninhabitable cellar, where five or more residents from two or more family groups live. This definition may vary between Local Authority's and is subject to revision from time to time. Business Development Managers (BDM's) and General Managers are responsible for ensuring that they are familiar with and comply with the prevailing HMO stipulations. Any of the above Accommodation types can be classed as an HMO if they match the relevant criteria. Who should use Company Accommodation ? The provision of Accommodation is not automatic and cannot be guaranteed but where applicable must be reserved for key Team Members within each Pub General Manager, Deputy General Manager, Kitchen Manager, Chefs and Team Leaders.

3 Where available, other employees should only be offered Company Accommodation if they work, on average, 30+ hours per week and the key Team Members listed above have already been accommodated. Spirit Pub Company Accommodation Policy 1. Company Accommodation will only be provided to non-employees where they are the partner / children of the General Manager. In some limited circumstances, partners / children of other salaried employees , who are not employees, may be permitted to share Company provided Accommodation provided the Operations Director has given written authorisation. Accommodation is provided to named employees and their identified partner /. children (where applicable) as a single, private home. No other person is permitted to reside in the Company Accommodation whether temporarily or permanently, without the express written consent of the Operations Director. Accommodation provided to Team Players is for their sole occupation The use of any Company provided Accommodation for the conduct of any professional trade or business, or the letting of rooms or receiving paying guests is strictly prohibited.

4 Occupancy If there is more than one family group living in the Accommodation , there must be no more than 4 individuals occupying that property, unless it is registered as a HMO. Family group is defined as a co-habiting couple and their children (where applicable). Where the Accommodation is registered as a HMO, the number of people living in must never exceed what has been stipulated on the HMO license (see below). Only designated bedrooms may be used as sleeping Accommodation and no more than 2 people are permitted to occupy a designated bedroom. Any unauthorised occupants found to be residing in Company Accommodation will be given 7 days notice in writing to leave the Accommodation . Failure to do so will result in eviction proceedings being commenced. The Company will seek to recoup the eviction costs from the individual concerned. The right of occupation for employees and their family will cease upon termination of employment, transfer to another place of business for the Company , non-compliance with the standards set out in this policy, the Accommodation Agreement or the terms & conditions of employment, or with 14 days notice in writing.

5 If an employee does not vacate Company provided Accommodation on the date of leaving or as agreed, eviction proceedings will be commenced immediately. In all cases the Company will seek to recoup the eviction costs incurred from the individual concerned. There will be no compensation for loss of Accommodation under any circumstances. Deductions General Managers are currently exempt from paying a live-in charge where Accommodation is provided for the better performance of their duties as defined by Her Majesty's Revenue & Customs (HMRC). However they will be liable for deductions in respect of Council Tax (please see Council Tax policy). and any taxable benefit in kind liability that may arise out of the provision of Accommodation will be declared on the employee's P11D. Where an employee is the partner / child of the General Manager, and occupies the Accommodation with the General Manager, they will be considered exempt from the Benefit In Kind tax liability under current HMRC.

6 Guidelines. Therefore they will not pay the live-in contribution while they Spirit Pub Company Accommodation Policy 2. continue to share Company provided Accommodation with the General Manager. Payroll must be notified of this exemption by the relevant BDM. Where an employee who is not the General Manager takes on temporary responsibility for the running of a pub, in the absence of the General Manager, for a period of more than four weeks, they will be exempt from Accommodation contributions, if they are required to live on site for the better performance of their role . If they continue to live on site after the General Manager returns / is appointed, the Accommodation contribution will apply. All other employees living in Company provided Accommodation pay a live-in contribution which is currently 30 per week ( 120 each four week pay cycle), which is deducted from their wages. A proportion of this deduction will count towards the cost of Council Tax and utilities for the property in which the employee resides.

7 If there is any additional benefit in kind tax liability arising out of the employee's occupation of Company provided Accommodation , this will be declared on the individual's P11D. The live-in contribution will be reviewed on an annual basis and any changes will be advised in writing. Live-in contributions will be deducted from any statutory or non-statutory pay made to the employee whilst they are registered as residing in Company provided Accommodation . This includes but is not restricted to; Company Sick Pay (CSP), Statutory Sick Pay (SSP), Holiday pay, Statutory Maternity Pay (SMP), Statutory Paternity Pay (SPP). Where work is required to return Accommodation to its original condition (excepting normal wear and tear), the Company reserves the right to make deductions from employee's pay to compensate for this work. Arrears policy Where an employee is living-in, but is absent from work without pay, the live- in contribution will accumulate.

8 Once the employee is receiving pay, the Accommodation arrears will be deducted at 10% of their total (gross) wage each pay period until the arrears are paid. Examples of when arrears may accumulate include during extended maternity leave, unauthorised absence, long-term sickness absence and the provision of incorrect live-in data. If an employee leaves work without the Accommodation arrears being paid back in full, any outstanding amount will be deducted from the final pay. If there is no final pay owing, or it is insufficient to cover the arrears, the employee will be required to make a payment to the Company to clear these arrears. Tax Implications The Company considers that General Managers (including their partner /. children who are employed in the pub) are exempt from the benefit in kind tax liability in respect of on site Accommodation that is provided for the better performance of their duties. However if HMRC does not consider a particular General Manager to be covered by this exemption the taxable benefit in kind for the Accommodation provided will be declared on the individuals P11D.

9 If the HMRC does not consider the General Managers partner / children (who are employed and live-in) to be covered by this exemption they will be required to pay the prevailing benefit in kind contribution from their four weekly pay. All General Managers are liable to pay tax on the utilities that are provided as a benefit of living in Company provided Accommodation and this will be Spirit Pub Company Accommodation Policy 3. declared on their P11D as required by HMRC. This amount is stipulated by HMRC and may be revised from one year to the next. Salaried non-managers and Team Players are not exempt from the benefit in kind tax liability of having Accommodation provided. However, in most cases this liability will be covered by the 30 per week live-in contributions that salaried non-managers and Team Players pay towards the provision of Accommodation , council tax and utilities. Where HMRC do not find that this deduction is sufficient to cover the benefit in kind tax, any additional liability will be declared on the individuals P11D.

10 HMRC does not consider General Managers, or any other employees, living in rented Accommodation to be exempt from the tax liability arising from this benefit. Therefore the benefit of living in rented Accommodation will be declared on the individual's P11D. This value is based on the annual rent paid by the Company minus any live-in contributions paid by the employee. As General Managers do not pay any live-in contributions, the full value of the rent has to be declared on their P11D. Any Team Members occupying rented Accommodation will have an amount for heat and light declared on their P11D. The HMRC does not consider the live-in contribution to be sufficient to offset the value of the rent, council tax and utilities. Responsibilities It is the General Manager's responsibility to ensure that all Accommodation records are accurate and up to date. This includes, but is not restricted to the following elements: i.