You don't have to charge anything and if the costs to you are minimal then most people wouldn't charge and just see it as part of good IR

If the costs are substantial in creating a bespoke solution (its unlikely) then that would be the basis for any discussion.

But its a bit like the ability to charge employees for providing them with data under the DPA - most people don't bother as its detrimental to the relationship.

Hi Lisa

Interesting question.

In your shoes I would start by estimating the cost of providing this service, including transactions such as :

• setting up the payroll system in order to
  • identify the individual amounts to be deducted,
  • produce (monthly) reports to be sent to the union to reconcile individually and collectively the above figures, and for internal accounting 
  • include the deduction as a separate line on individual payslips
  • run a bank transfer to the union's account every month
• inputting and maintaining data into the payroll system to identify the people for whom the deduction applies
• adjusting all of the above processes when subscription levels change
• production of invoice to union and recording payment for the charge

I would also estimate the savings that the union will make compared to them collecting the subscriptions themselves via direct debit (not a free service)

Once you have estimated the above factors (and any others that forum colleagues can identify) I would try to equate these costs to a percentage of the money that is transferred, to make the process as light and simple as possible. If you don't do this you will probably have to add another transaction to the above items - the time spent each month undertaking a detailed ,complicated calcalculation of the exact charge based on the itemised cost each of the charge component.

I'm sure your accounts team can help you build up the cost model for simulation.... but at the end of the day, it can only be a negotiated deal. 

At the end of the day, you'll need to reach an negotiated agreement with which everyone is "happy"

In reply to Keith:

Its a bit different for public sector organisations Keith - there is legislation coming into Force in March 2018 requiring public sector organisations to charge for carrying out check off (Trade Union (Deduction of Union Subscriptions from Wages in the Public Sector) Regulations)
www.legislation.gov.uk/.../9780111155943

I suspect that this is what the Union are wating to start negotiations.

In my mind it is ridiculous as the Government thinks that it will bring money into the public sector, completely missing the point that the cost of people's time in terms of carrying out the negotiations and then adinistering the payments from the Union(s), means that it is likely to cost public sector bodies more than they get in and it just adds another piece of red tape for them to comply with.

In reply to Teresa:

Some useful reading here to help understand where the government is coming from and how unions may approach the question...... 

In reply to Teresa:

Thanks Teresa - almost entirely pointless I would have thought. But hey ho that's Government

In reply to Ray:

That's a very depressing document to read - so much of it based on incomplete and/or inaccurate information. It's terribly written and really poor - the potential income is based on ridiculous guesses about how much administering check off costs at the moment (outstandingly minimal), but also suggests more savings will be made if it leads to people stopping using check off, completely missing the point that if that happens, they won't be getting the income from the Unions!

It's clear that it is purely done for political reasons and it's so annoying. (thankfully i no longer work in the public sector and wild horses wouldn't drag me back)

Many many years when renewal of check off was introduced we introduced a charge for this. It was straightforward and contributed to the reduction in TU membership which was of course the aim of the legislation.
What was lost was data on which employees were TU members.