HR policy. Redundancy. Management System. Policy. Revision Schedule
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1 HR policy Redundancy Revision Schedule Rev. No. Date Details of change 09/04/2008 First Issue 16/07/2009 Updated Rev 0 07/06/2010 Transfer to Morgan Sindall - Original document Rev 1 30/09/2011 Revised to one policy Original document Rev 1 Oct 11 Integrated Management System merger Rev 2 Aug 12 Insert new section 7. Appeal Process Rev 3 Nov 12 Amendment to section 6.1 Rev 4 Apr 13 Section 2. Scope amended to reflect legislative changes Page 1 of 5
2 Contents 1 Purpose Scope Responsibility and policy Redundancy Introduction Consideration of alternatives Redundancy process Appeal process Media attention Overview Author Purpose To detail Morgan Sindall s stance on, and set out a common approach to, potential redundancy situations. 2. Scope This policy applies to all employees whether established, temporary or otherwise who meet the legal eligibility requirements pertaining to statutory redundancy and where there are no individual contractual redundancy provisions already in place.these procedures do not form part of the employment contract and are therefore non-contractual except where statute is in place to imply otherwise. 3. Responsibility and policy 3.1 Responsibility Implementation HR staff, relevant line management. Upgrade and maintenance HR Director. 3.2 It is the intention of Morgan Sindall to develop and expand its business activities and thus provide a stable work environment and reasonable security of employment for its employees. Whilst striving towards this, Morgan Sindall must also ensure the economic viability of the enterprise in an increasingly competitive business environment. In this respect circumstances may arise where amongst other things, changes in circumstances such as market conditions, technology and/or organisational requirements or financial pressures will impact on staffing requirements resulting in an unavoidable need for redundancies. Morgan Sindall will seek to minimise the impact of such reductions by seeking redeployment opportunities wherever appropriate and by adopting a fair, consistent and sensitive approach to those employees affected by the potential redundancy situation. 4. Redundancy introduction The laws governing redundancy are stringent and complex, and no two redundancy situations are the same. The HR department must always be involved in any potential redundancy situations in order to determine the management and process which will be undertaken. Page 2 of 5
3 5. Consideration of alternatives Where potential redundancy situations arise the company will seek to minimise the effect of redundancies by investigating the following measures, subject to the company s immediate business considerations. Non-replacement of leavers Restricting the use of temporary labour, casual staff and consultants Reducing sub-contract work in areas affected. Reducing overtime working in affected departments to a level essential economically to meet contractual commitments or provide essential services. Considering the implementation of temporary lay-off, short-time working, job-sharing or other permanent or temporary reduction in hours of work. Inviting applications for redundancy Or any other such options which the company views as relevant at the time given the circumstances pertaining. The final decision with respect to what measures are implemented will rest solely with the company based on practicability and whether they would, in a particular situation, remove or reduce the need for redundancies. Where compulsory redundancy is unavoidable the company will seek to handle the situation in the most fair, consistent and sympathetic manner possible. 6. Redundancy process 6.1 Redundancy process general principles Selection and consultation Employees will be told at the earliest possible opportunity of the reasons for the potential redundancy situation and individual consultation will take place with those potentially affected employees to discuss the possibility of redundancy. Depending on the circumstances it may be relevant to consult through Trades Unions or employee representatives. Where a position is identified as potentially redundant the company will invite the employee to a first consultation meeting to outline the circumstances.. Each employee will have the right to and will be informed in writing of the basis of his or her selection and invited to put forward any representations which the company will fully consider before making a final decision on which employees are to be made redundant. The company will carry out as much consultation as is reasonably practicable according to individual circumstances and within standard procedural requirements. At the end of the consultation period, in the event of redundancy, the redundancy will be confirmed in writing including a right of appeal. All employees selected for dismissal on the grounds of compulsory redundancy are entitled to appeal. Alternative employment Every effort will be made to find alternative employment within Morgan Sindall and from within the Morgan Sindall Group for those potentially at risk of redundancy and to consider potentially redundant employees for suitable vacancies. Where other opportunities are identified the employee/s will be contacted to inform them of such vacancies which they may wish to consider. Potentially redundant employees who accept alternative employment within Morgan Sindall or Morgan Sindall Group will be entitled to a trial period in accordance with prevailing legislation. Time off to seek alternative work Subject to the company s operational needs, employees who are being considered for redundancy will be given permission to take time off work to look for work or seek training Page 3 of 5
4 opportunities, in accordance with current legislation. Requests should be made in the first instance to the line manager. Redundancy entitlements Redundant employees who have a minimum of two years continuous service with the company will normally be entitled to be paid statutory redundancy pay as laid down in existing legislation. All employees who receive redundancy payments will be given written notification of the way in which their redundancy pay has been calculated. 6.2 Redundancy process collective consultation (large scale) The following consultation periods are legally required, depending on the number of potential redundancies to be made in any one location or establishment: Minimum of 30 days consultation where 20 or more positions are potentially redundant Minimum of 45 days consultation where 100 or more positions are potentially to be made redundant. The management of Morgan Sindall will provide full information to employees, or their representatives, about the proposed redundancies and will give the representatives adequate time to respond. The information provided will include the: Reasons for the proposed redundancies Numbers and categories of employees who may be made redundant Proposed method of carrying out any redundancy dismissals (including the selection method) Time period over which the redundancies may be carried out Proposed method of calculating redundancy payments. The objectives of consultation will be to: Reach agreement with employees (or their representatives) on the above issues Avoid the need for redundancies wherever possible Reduce to a minimum the number of employees who are to be made redundant Determine the criteria to be used to select employees for redundancy Mitigate the consequences of any dismissals. Following provisional selections for redundancy the company will then enter into individual consultations. 6.3 Redundancy process individual consultation (small scale) Where the number of jobs in any one location or establishment is less than 20, consultation will be on an individual basis, rather than a collective basis. There are no fixed timescales for this but the company will carry out as much consultation as is reasonably practicable, depending on the individual circumstances and within procedural requirements. 7. Appeal Process An employee who has been selected for redundancy and is dissatisfied with the way in which the organisation has applied the selection criteria, or who believes that he or she has been unfairly disadvantaged by the selection criteria or has not been given a fair opportunity to put forward representations, can appeal against his or her selection for redundancy. The appeal should be in writing, stating the reason for the appeal and within 5 working days of the date of the letter where notice of redundancy has been issued. 8. Media attention Should redundancies be of a sufficiently large scale to have an effect on the company s credibility or standing in surrounding communities a statement will be prepared by the Morgan Sindall board and will be released to the media only if and when necessary. Page 4 of 5
5 Any other internal or external enquiries on the subject must be passed to the Managing Director, without comment to the enquirer. This information must then be passed to the Morgan Sindall board. Employees are reminded of their contractual obligations of confidentiality in this respect. 9. Overview The above policy and procedures give an overview which in the case of most employees will adequately cover their requirements. They do not attempt to describe the law in detail and should not be taken as an authoritative statement of law. For more detailed information contact the HR department. 10. Author Name Position in company Contact details Pauline Speight Director of HR Leeds or Rugby office Page 5 of 5
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