Deduction of contributions at source (DOCAS) regulations 2023

Scope 

• The regulations only cover organisations in England and Scotland that are either wholly or mainly public funded. They do not apply to devolved Welsh Bodies (due to the passing of the Trade Union (Wales) Act 2017). However, any  public sector organisations that operate within Wales and are not devolved, must comply with the regulations.  
• Whilst there is no statutory obligation for an employer to provide this service - the regulations do not seek to remove check-off in the public sector.
• There is no requirement for employers to stop deductions of contributions at source (DOCAS) arrangements currently in place however, existing arrangements should be applied in accordance with the regulations.

Costs 

• Where there is no (discernible) cost associated for administering check-off, there must be no charge to the trade union.
• Any payments should be reasonable, and only cover the costs of making the deductions also the fee recharged must be substantially equivalent to the total cost of administering check off.
• Employers must not profit from any recharge arrangements. Employers should not charge excessive amounts or use a mechanism for administering check-off that is more costly than needed.   
• Employers should look to administer check-off in the most cost-effective way. Employers should only charge unions for the additional cost of check-off, not the purchase of a contract or the full cost of using the payroll system. Costs should be updated when the contract or provider changes.
• Employers must not seek to charge retrospectively (so new arrangements can only apply from 9 May 2024).
• Administration costs may include: 
  • wage and non-wage costs such as national insurance, pensions contributions
  • setting-up costs for a new system - time spent introducing the system and procurement costs or additional staffing resources. Employers cannot charge for this if the system is already in place 
  • adding new staff and processing consent forms. And staff asking to stop check off 
  • ongoing admin costs such as time taken to process deductions and any changes as a result of a subs increase.
  • one off payments for example, late notice from unions for changes which result in additional admin time. 

Making arrangements 

Local partnerships may wish to put in place agreements to capture the formal arrangements about what deductions will be made and how the membership information and financial remittance data will be provided.

• Agreements should be consistent with relevant legislation, including the General Data Protection Regulations 2016. The DHSC guidance states that employers may wish to assess the costs incurred, including time associated with admin and third-party suppliers. 
• Provide information to unions of the cost and calculation, how costs will be split between unions, and be able to evidence how they reached the calculation and provide reasonable data to support their considerations. 
• Provide the opportunity for unions to comment.
• Aim to reach agreement within a reasonable period. For these arrangements to take place before the coming into force date (9 May 2024).
• Submit a monthly invoice or agreed percentage reduction to the fee transferred from member subs.
• Keep arrangements under review.

Maintaining agreements 

The regulations do not seek to remove check-off. In the event that parties experience difficulty in reaching agreement they are encouraged to seek advice and support through their respective sides and look at use of normal dispute resolution mechanisms.

Please note: some of the wording contained in this checklist is taken directly from the guidance.

1. PURPOSE OF THE AGREEMENT 

i. Definitions 

ii. Service provision 

iii. Commencement and termination 

iv. Review of agreement 

v. Quality 

vi. Confidentiality 

vii. Data protection 

2. SCHEDULE OF THE SERVICES TO BE PROVIDED 

i. Deductions from salary or wages 

ii. Determination of a member’s subscription band 

iii. Increases in subscription rates 

iv. Cessation of subscriptions 

v. Reductions in subscriptions 

3 PROVISION OF DOCAS INFORMATION 

i. Monthly reports 

ii. Customised reports 

4 ELECTRONIC MEDIA OPTIONS 

i. File format 

ii. Frequency of data collection 

iii. Preferred electronic media 

iv. Procedure for introducing electronic data 

5 SUBSCRIPTION RATES 

6 SIGNATORIES TO THE AGREEMENT