Implementing Change (Redundancy & Restructures) Policy
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1 Implementing Change (Redundancy & Restructures) Policy Further advice and guidance on this policy can be obtained from your HR Business Partner or the HR Helpdesk
2 Contents Page 1. Introduction Scope of the procedure Policy statement 1 2. Definitions Redundancy Restructuring An Amalgamation 2 3. Roles and Responsibilities 2 4. Procedure Declaration of a redundancy Timescales Consultation Redundancy avoidance Selection procedures Notification Meeting Appeal 6 5. Redundancy payments Support for employees 7 Appendix A 8 Appendix B 9 Appendix C Appendix D Glossary Accompanying Documents Redeployment policy
3 1. INTRODUCTION This procedure sets out the process that will be followed where the academy/professional services department is reorganised, for example: the academy/professional services department seeks to revise part or all of its staffing structure; the academy/professional services department is part of an amalgamation; the academy/professional services department is closed. or a redundancy situation arises at the academy/professional services department. Employees who transferred to the Group under the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) will be covered by this policy, which supersedes any previous policy. For the avoidance of doubt, however, where an individual s contractual terms are protected under TUPE and they are more financially advantageous than those detailed in this policy, the more beneficial terms only will apply. The Group does, however, reserve the right to make changes in the future in this regard through consultation with the Joint Consultative and Negotiation Committee (JCNC) due to economic, technical or organisational reasons. This policy has been agreed following consultation with our recognised trade unions and does not form part of any employee s contract of employment and it may be amended at any time, subject to further consultation in accordance with the recognition agreement Scope of the procedure The procedure is applicable to all categories of employees where a re-organisation, closure or redundancy situation occurs. A modified version of this procedure may be followed in respect of fixed term temporary posts and those employees with less than two years service Policy statement The Group will: keep its staffing structure (as contained in the academy/professional services department s Pay Policy) under regular review and plan effectively for future needs; Implement measures aimed at avoiding redundancy wherever possible; ensure that effective communication and consultation take place with employees and professional associations/trade unions where re-organisation/redundancy situations do arise; provide support and re-training opportunities wherever possible, for affected employees; ensure that at risk employees have priority for any appropriate vacancies within the academy/professional services department; support staff in their attempts at obtaining suitable alternative employment within and beyond the academy/professional services department; show commitment to being a fair and reasonable employer and to ensuring that redundancy dismissals are managed in a consistent and non-discriminatory manner. 1
4 2. DEFINITIONS 2.1. Redundancy Redundancy is one of the potentially fair reasons by which employees may be dismissed. Redundancy is defined by statute as a situation where: the employer has ceased, or intends to cease, to carry on the business for the purpose for which the employee was employed by him/her; or has ceased, or intends to cease, to carry on that business in the place where the employee was so employed, or; the requirements of that business for employees to carry out work of a particular kind, or to carry out work of a particular kind in the place where he/she was so employed, have ceased or diminished or are expected to cease or diminish. Redundancy situations may arise for a number of reasons including: academy/professional services department closure, amalgamation or reorganisation/restructuring; fall in pupil numbers or changes to curriculum requirements resulting in reduced staffing requirements; withdrawal/reduction of SEN/SEND or other special provision/funding; other circumstances where the need for employees to carry out work of a particular kind ceases or diminishes, including the cessation of fixed term contracts Restructuring A re-structuring can be defined as any change to the Staffing Structure as set out in the academy/professional services department s Pay Policy. Re-structuring does not always result in a risk of redundancy An Amalgamation An Amalgamation is where two academies close and a new academy/professional services department opens in their place or one academy/professional services department closes and the other extends its age range to accommodate the closed academy/professional services department e.g. an infant and a junior academy/professional services department combining to form a primary academy/professional services department or two or more academies combining to form an academy/professional services department. 3. ROLES AND RESPONSIBILITIES It is the responsibility of the Group and local governing body or in the case of professional services employees the Executive Board to: establish and plan changes to the staffing structure which seek to avoid redundancy situations; establish change management procedures; establish an appropriate committee to handle redundancy dismissal appeals; 2
5 declare a redundancy situation where this is unavoidable. This will be coordinated by the HR Business Partner by issuing appropriate notice to the recognised trade unions; consult with the relevant parties; ensure that employees are dismissed fairly by reason of redundancy where necessary. In the case of an amalgamation with a new academy/professional services department opening, a temporary board of governors of the new academy/professional services department will be formed to help determine and implement the new staffing structure. In the case of an amalgamation with one academy/professional services department closing and the other extending its age range, the latter will normally have representation on its governing body from the closing school. The existing academy/professional services department/academies will be responsible for implementing any dismissals and for seeking to avoid redundancies. It is the responsibility of the principal to: advise the board of governors on staffing structures which seek to avoid redundancy situations; implement change management procedures fairly; seek and follow advice from the HR Business Partner. It is the responsibility of all employees to: co-operate with change management procedures and redundancy avoidance strategies; implement strategies to mitigate individual loss e.g. actively seek alternative employment. 4. THE PROCEDURE The procedures are summarised at Appendix B Declaration of a redundancy Where initial strategies to avoid a redundancy situation have been unsuccessful, the Group (or a relevant Committee) will meet to formally declare a potential redundancy situation. Where a re-organisation is proposed, the Group may declare a redundancy situation at an early stage as a precautionary measure, even though the exact potential for redundancy may not yet be fully known Timescales In order to allow for meaningful consultation and notice periods, and where possible, the procedures will often commence many months before the date that any redundancy or new structure is to take effect. Normally, the following timescales will be followed: 3
6 31 December redundancy dismissals: procedures commence including approval by Executive Board of the restructure rationale by the preceding summer half term; 30 April redundancy dismissals: procedures commence including approval by Executive Board of the restructure rationale by the preceding October half term; 31 August redundancy dismissals: procedures commence including approval by Executive Board of the restructure rationale by the preceding spring half term Consultation The principal will discuss potential redundancy situations with employees at the earliest opportunity, where appropriate before formal declaration of a redundancy. In the case of re-organisation, the scope and period of consultation will depend on the extent of the proposed changes. Where a significant change is proposed, an implementation plan will normally be produced as part of the consultation process, to explain exactly how the process will be managed and its effect on employees. Employees are encouraged to engage in meaningful discussion and to make suggestions about the new structure, how it might be implemented and measures which might be taken to avoid any redundancies. Details of discussions will be recorded in writing. When the Group or Board of Governors (or relevant Committee) determine a reorganisation and/or declare a formal redundancy situation, it will undertake, in conjunction with the HR Business Partner where appropriate, consultations with the relevant recognised professional associations/trade unions with a view to reaching agreement. In the case of redundancy, in accordance with statute the Group will issue an appropriate notice (or a Section 188 notice, if appropriate) disclosing in writing information relevant to the potential redundancy. Formal responses should be received within 2 working weeks. In the case of a re-organisation, this will include formal consultation on changes to the staffing structure and on the implementation plan where applicable. Employees should of course seek advice from their professional associations/trade union as and when they consider it appropriate. Meaningful consultation will continue throughout the formal procedure. The Group, Board of Governors, Principal and HR Business Partner where appropriate, will consider any representations made by employees and/or the professional associations/trade unions. Replies will normally be made to those representations in writing and, if any are rejected, the reasons would be stated Redundancy avoidance The Group and Board of Governors will require the Principal, and the HR Business Partners where appropriate, to instigate compulsory redundancy avoidance measures including: slotting into appropriate posts within the academy/professional services department;* ring-fenced selection for posts within the Group;* searching for suitable alternative posts;* 4
7 exploring other options with employees and their representatives e.g. changes to hours, change to part time work; and job shares seeking volunteers for redundancy;**; seeking volunteers for flexible and early retirement;*** exploring within the Group any prospects for agreed bumped redundancies in other of the Group s academies; natural wastage; restrictions on recruitment; reduced non-staffing expenditure. In the case of re-structuring/re-organisation, these measures will form part of the overall implementation plan. These measures will continue throughout the entire procedure. * With salary protection where applicable and in accordance with the Redeployment Policy. ** Voluntary redundancy will not be considered until or unless all other means have proved unsuccessful. Applications for voluntary redundancy will only be accepted in accordance with current Board of Governors/Department policy and where this would not be detrimental to the needs of the academy/professional services department. Where there are more volunteers than needed, the selection criteria will be applied (see below and Appendix A). *** Employees are free to request flexible retirement options, which will normally require the Groups prior approval. Approval will not usually be withheld where there is no cost to the academy/professional services department Selection procedures In the case of a re-organisation, employees will normally be confirmed in post, slottedin or included in a ring-fence for available posts. The method of appointment to available posts, which may include interviews, will be outlined in the implementation plan where appropriate. Further details of this process are set out in Appendix Bi. In these cases, any redundancies will usually be identified through non-appointment to available posts. In other redundancy situations where there is a straight headcount reduction of a particular workgroup as opposed to a restructure of a department(s) or the whole academy/professional services department, if the strategies adopted above (or any other strategies that may have arisen as a result of consultation) do not resolve the situation, the principal will determine and apply the selection criteria as set out in Appendix A. Employees and unions will be consulted on the Selection Criteria and the method by which they will be applied Notification Once an individual has been identified as redundant, s/he will be notified verbally by the principal. The principal will then write to the individual setting out the detail of how 5
8 the decision was reached and inviting the employee to a meeting with the principal to discuss this Meeting The employee will be given at least 5 working days notice of this meeting and at the same time will be provided with papers relevant to the case. The employee must make every effort to attend this meeting. The employee has the right to be accompanied by a trade union representative or work colleague. One postponement may be allowed where the employee s chosen representative is unavailable on the proposed date. In this case an alternative date, normally within 5 working days of the original date will be arranged. The employee must submit any papers they wish to be considered and the name of their representative to the principal at least 3 working days before the meeting. The principal may be advised by an HR Business Partner. After the meeting the principal will write to the employee to inform him/her of the outcome and their right of appeal. Where the decision is to dismiss on the grounds of redundancy, the academy/professional services department, on behalf of the Group, will issue notice to the individual, in accordance with the appropriate conditions of service and statutory requirements Appeal If the employee wishes to appeal, s/he must inform the Group of their intention in writing to appeal within 5 working days of receipt of the written outcome of the meeting, and must confirm in writing their full grounds of the appeal, within 10 working days of receipt of the written outcome of the meeting. If the employee does so, the employee will be invited to a meeting of the Group s Appeals Committee. The employee will be given at least 5 working days notice of this meeting. The principal will supply the employee with papers relevant to the appeal at least 5 working days before the appeal meeting. The employee must take all reasonable steps to attend this appeal meeting and has the right to be accompanied as above. The employee must supply the principal and the Group s Appeals Committee with copies of any papers s/he wishes to be considered, and the name of her/his representative, at least 3 working days before the meeting. 6
9 The Group s Appeals Committee will hear evidence from the principal and the employee (and her/his representative). The Group s Appeal Committee may be advised by an HR Business Partner. The Group s Appeal Committee will inform the employee in writing of the final decision within 3 working days of the appeal meeting. Redundancy avoidance possibilities will continue to be sought throughout the period of notice. 5. REDUNDANCY PAYMENTS Employees with more than 2 years continuous service may be eligible for redundancy payments. A ready-reckoner for calculating redundancy payments is at Appendix C. Redundancy payments will be calculated for all employees using their actual weekly salary which will then be multiplied in accordance with the ready reckoner at appendix C. Where employees with more than one contract are made redundant from only one post, service for redundancy purposes will relate to the redundant post only. Employees will not be entitled to a redundancy payment if they secure alternative employment, with an employer covered by the Local Government Modifications Order, to commence within 1 month and 1 day (e.g. 5 consecutive Mondays) of the date of redundancy. Where an offer of alternative employment is made, the start date of this employment should not be artificially delayed to facilitate the 1 month and 1 day break. Where this does occur, employees will not be entitled to a redundancy payment Support for employees The Group will provide reasonable support for employees at risk of redundancy, e.g. reasonable, agreed time off to attend interviews and training and development; support with writing applications where required; exploration of re-training opportunities where identified; notification of internal vacancies and specific provision of information about other vacancies within the Group s academies. 7
10 APPENDIX A Redundancy Selection Criteria In order to fairly select an individual employee for redundancy, the principal must apply objective selection criteria which will be subject to consultation with employees and unions. As each redundancy situation will be different, the detail of the selection criteria will need to be determined on a case by case basis. In all cases, employees and Trade Unions/Professional Associations will be consulted on this process. However, all selection decisions will follow the stages set out below. 1. Determine the requirements of the academy/professional services department, department or section. 2. Determine the at risk group i.e. whole academy/professional services department, department, section, or group within the establishment which has surplus employees. 3. Where there is only one employee in this group s/he will be selected for redundancy without the need to apply the remaining selection criteria. Determine the suitability (with reference for example to skills and qualifications where relevant) of those in the at risk group in relation to the requirements of the academy/professional services department or section. 4. Suitability will be assessed objectively. Employees will contribute to this usually by completion of a skills audit linked to the requirements determined in 4. above. Employees managers, in addition to the principal, may also be required to contribute to this process. Interviews and other selection methods can also be used. 5. A judgement will be made as to which employees best meet the requirements of the academy/professional services department, department or section and thereby which employee(s) may be selected for redundancy. 8
11 APPENDIX B Reorganisations - Appointment Procedure The Procedure 1. The principal will, in consultation with the governing body, prepare a teaching and support staff structure for the academy/professional services department. Details of this structure and the associated job descriptions will be published and circulated to all employees within the ring-fence prior to the commencement of the appointment process. In the case of a whole academy/professional services department reorganisation the documents will be shared with all employees. 2. Appointments within the structure will be made by the principal, who where appropriate may convene a selection panel from the academy/professional services department s senior team (which could include external advisors). An HR business partner will be available at all stages to offer advice and guidance. 3. The individual groups of employees identified within the restructure (teachers, student support, administrative, manual) will be dealt with separately. Appointments will be made sequentially within each group, starting at the most senior level. 4. Normally no appointments will be made to any level until the selection process has been completed for employees within the ring-fence for the preceding level. All appointments to posts will be made on a provisional basis pending the outcome of any appeal received. 5. Within each level of appointments, the following sequence will be followed where there is no risk of redundancies: (a) (b) (c) The principal /appointments panel will consider each post and where there is a clear match between an individual and a post in terms of salary and job description will allocate that individual to the post. This determination will be made against the employee s substantive post. A match will only be possible where the number of posts available in the new structure does not exceed the number of employees matched. Details of appointments made in this way will be published to all employees within the ring-fence. At the same time the principal will publish a document detailing the provisional matching of all posts confirming the proposed ringfences. Employees within the ring-fence will be given the opportunity to seek a review of the provisional matching to the principal through the consultation process. Any posts remaining after the allocation process (i.e. where there is no clear match or a where there are number of potential candidates matched) will be advertised internally to employees within the ring-fence. All employees within this group who expresses an interest in the post(s) will be entitled to undergo a selection process which will include an interview and other selections tools which the academy/professional services department deems to be appropriate in the circumstances. Appointments made as a result of this process will be published to all employees. Where there is no clear match made the positions will be made available for all employees to apply, and may 9
12 be advertised externally where the academy/professional services department decides it is appropriate to do so. (d) (e) (f) Employees will have the opportunity to appeal against the provisional appointments made by submitting a written appeal within 5 working days of confirmation of the decision. The letter of appeal must set out the reasons for the appeal and the outcome sought. A panel will be convened to hear the appeal and will normally be made up of 3 members of the governing body and a minimum of 2. Appeals will be heard as soon as possible. The decision reached by the appeals panel will be confirmed in writing and will be final. All individuals appointed at the level involved will receive a written confirmation of their provisional appointments within the new structure pending the outcome of any appeals. If it has not been possible to fill any posts by the internal appointment process, it will now be possible for the governing body to advertise more widely and to make an appointment in the normal way. 6. The sequence in 5(a) (f) will be repeated until all posts within the structure have been filled. 7. In the regrettable event that potential redundancies are identified in any area then the same process as above will followed save the selection criteria to be used will be in accordance with the relevant redundancy procedure, or otherwise consulted upon with the recognised trade unions. The academy/professional services department will formally notify any employees who have not been identified with a post of this fact, giving reasons and inviting the employees affected to a meeting to discuss the situation and its implications. As this is a reorganisation and a dismissal is involved, employees must then be given the opportunity to lodge an appeal against the decision to dismiss if (s)he so wishes. GENERAL PROVISIONS/PRINCIPLES (i) (ii) (iii) (iv) (v) At all stages within the procedure, details of appointments and allocations will be published to employees within the ring-fence. Although the procedure makes provision for external appointments, this will always be regarded as a last resort. In those cases where members of the existing structure remain unallocated because it has not been possible to identify them with a post in the new structure, the academy/professional services department will make every effort to avoid compulsory redundancy. This could include retraining or, voluntary selection for redundancy. * Where employees are appointed to posts of a lower grade/salary, their salary level will be protected in accordance with their post* Throughout the period leading up to the date of reorganisation, any new appointments and/or promotions will be made on a temporary basis to safeguard the position of existing employees. 10
13 (vi) Employees holding temporary appointments will be free to apply for posts only after existing substantive employees have been considered (i.e. at stage 5(f)). (vii) An employee who chooses not to be slotted in to a post considered directly comparable to his/her existing post may cause themselves not to be entitled to a redundancy payment in the event of his/her employment ending. Such a decision by an employee is likely to be considered as refusing an offer of a reasonable alternative post. Under such circumstances, redundancy compensation payments are not appropriate if the employee has caused him/herself to be without a post. (viii) In the event that an employee chooses not to be considered for a post either directly comparable to his/her existing post, or at the same level, and secures a position at a lower level in the structure, then salary protection will not be applicable. (ix) (x) In the event that an employee is displaced from a post at their current level (i.e. they were not successful in securing a post at the higher level) or where there is no post at his/her current level in the new structure the employee may apply for a post at one level down in the structure where this post is a new one that did not exist in the previous structures or where a post remains unfilled by employees at the lower level. An employee can only apply for a post at a higher level (i.e. providing individual promotion) where there is a post in the new structure that no one previously held within the current structures. In the first instance the employee s application will only be considered if it is no more than one level above his/her current position, but in the event that the post remains unfilled any employee who is suitably qualified and experienced may apply. Notes * 1. Subject to any national changes which over-ride the academy/professional services department s scheme, early retirement and redundancy/severance benefits will be based on the scheme which is in place at the date the consultation commences in regards to the reorganisation. Details of these benefits will be made available to trade unions and all affected employees. 2. Teachers will receive protection under the general safeguarding provisions laid down in the School Teachers Pay and Conditions Document effective at the date of the reorganisation. Support staff will receive salary protection under the academy/professional services department policy current at the time of the reorganisation. 11
14 APPENDIX C Redundancy/Re-Structuring Procedure at a Glance 12
15 APPENDIX D Ready Reckoner for Statutory Redundancy Payments How to calculate the number of week s pay: Completed Years of Service Age ½ ½ ½ 2 2½ ½ 2 2½ ½ 2 2½ 3 3½ 23 1½ 2 2½ 3 3½ 4 4½ ½ 3 3½ 4 4½ 5 5½ ½ 4 4½ 5 5½ 6 6½ ½ 5 5½ 6 6½ 7 7½ ½ 6 6½ 7 7½ 8 8½ ½ 7 7½ 8 8½ 9 9½ ½ 8 8½ 9 9½ 10 10½ ½ 9 9½ 10 10½ 11 11½ ½ 10 10½ 11 11½ 12 12½ ½ 11 11½ 12 12½ 13 13½ ½ 12 12½ 13 13½ 14 14½ ½ 13 13½ 14 14½ 15 15½ ½ 14 14½ 15 15½ 16 16½ ½ 15 15½ 16 16½ ½ 16 16½ 17 17½ ½ 17 17½ ½ 18 18½ ½ ½ 42 2½ 3½ 4½ 5½ 6½ 7½ 8½ 9½ 10½ 11½ 12½ 13½ 14½ 15½ 16½ 17½ 18½ 19½ 20½ ½ 5½ 6½ 7½ 8½ 9½ 10½ 11½ 12½ 13½ 14½ 15½ 16½ 17½ 18½ 19½ 20½ 21½ ½ ½ 6 7½ 8½ 9½ 10½ 11½ 12½ 13½ 14½ 15½ 16½ 17½ 18½ 19½ 20½ 21½ 22½ ½ 6 7½ ½ 6 7½ 9 10½ 11½ 12½ 13½ 14½ 15½ 16½ 17½ 18½ 19½ 20½ 21½ 22½ 23½ ½ 6 7½ 9 10½ ½ 6 7½ 9 10½ 12 13½ 14½ 15½ 16½ 17½ 18½ 19½ 20½ 21½ 22½ 23½ 24½ ½ 6 7½ 9 10½ 12 13½ ½ 6 7½ 9 10½ 12 13½ 15 16½ 17½ 18½ 19½ 20½ 21½ 22½ 23½ 24½ 25½ ½ 6 7½ 9 10½ 12 13½ 15 16½ ½ 6 7½ 9 10½ 12 13½ 15 16½ 18 19½ 20½ 21½ 22½ 23½ 24½ 25½ 26½ ½ 6 7½ 9 10½ 12 13½ 15 16½ 18 19½ ½ 6 7½ 9 10½ 12 13½ 15 16½ 18 19½ 21 22½ 23½ 24½ 25½ 26½ 27½ ½ 6 7½ 9 10½ 12 13½ 15 16½ 18 19½ 21 22½ ½ 6 7½ 9 10½ 12 13½ 15 16½ 18 19½ 21 22½ 24 25½ 26½ 27½ 28½ ½ 6 7½ 9 10½ 12 13½ 15 16½ 18 19½ 21 22½ 24 25½ ½ 6 7½ 9 10½ 12 13½ 15 16½ 18 19½ 21 22½ 24 25½ 27 28½ 29½ ½ 6 7½ 9 10½ 12 13½ 15 16½ 18 19½ 21 22½ 24 25½ 27 28½ 30 13
16 Glossary and Status of the Policy and Guidance Throughout this policy and guidance (where applicable), the terms shown below will have, or include, the following meanings: Principal includes Headteachers where these are in post; Vice-Principal includes Deputy Headteachers where these are in post; Group refers to the Academies Enterprise Trust (this includes all academy and professional services staff), Unity City Academy and London Academies Enterprise Trust; Professional Services includes all employees engaged centrally to provide services and support to the Group s academies. In respect of Professional Services references in the policy to academies should be read as the relevant Professional Services department and references to the Governing Body should be read as the Group s Executive Board, except where the employee concerned is a member of the Executive Board then this should be read as the Group s Board. Line Manager includes any members of teaching and support staff with management responsibility for other employees. Trade Unions mean an organisation appearing on the Certification Officer s list of Trade Unions. 14
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