Size: px
Start display at page:



1 REDUNDANCY MANAGEMENT Version V3 Name of responsible Department Human Resources Date ratified Date Ratified by JCC Document Manager (job title) Human Resources Date issued Review date October 2019 Electronic location H:/Policies and Procedures/Human Resource Standards/Redundancy Management Related Procedural Documents 1

2 Version Control Amendments Record Date Section Comments Approved by 28 th September rd October 2016 All Full Revision Redundancy Matrix 2


4 The Action Group Policy Statement and Standards for Redundancy Management POLICY STATEMENT The Action Group is committed to being a good employer and reserves the right to give first priority to the needs of our service users. It is the intention of The Action Group to maintain job security wherever practicable. The Action Group is a dynamic organisation and as such work locations and methods of service delivery change, as do funding arrangements and partnerships. Unfortunately such changes can lead to reductions in required staffing levels and redundancies may result. These standards cover the key areas which are non-negotiable. Senior Management Team and all managers are responsible for ensuring The Action Group manages any potential redundancy situations in a fair and reasonable way and that these standards are fully implemented and monitored in their respective areas. STANDARDS FOR REDUNDANCY MANAGEMENT These Standards apply to all employees within The Action Group. All managers are expected to deal with any potential redundancies of their staff in a consistent, fair, reasonable and sympathetic way. The Standards set out a legal framework and minimum standards of best practice, which will be applied in a non-discriminatory manner. DEFINITION OF REDUNDANCY Standard 1 A redundancy arises when an employee/s are dismissed because: The employer has ceased, or intends to cease, to carry on the business for the purposes of which the employee/s were employed; or The employer has ceased, or intends to cease, to carry on the business in the place where the employee/s were so employed; or The requirement of the business for employees to carry out work of a particular kind has ceased or diminished or are expected to cease or diminish; or The requirement of the business of the employees to carry out work of a particular kind, in the place where they were so employed, has ceased or diminished or are expected to cease or diminish. 4

5 AVOIDING REDUNDANCY Standard 2 In order to minimise or avoid compulsory redundancy The Action Group may consider the following measures: Normal staff leavers. Restrictions on recruitment Redeployment to other parts of the organisation Reduction or elimination of overtime Seeking applicants for early retirement or voluntary redundancy Termination of temporary contracts These measures will only be acted upon where the outcomes will offer the results required within the given timescales. NOTIFICATION Standard 3 The Action Group must notify The Secretary of state for Business, Innovation and Skills (BIS) if more than 20 employees are to be made redundant in a 90 day period. Standard 4 30 days notice to BIS is required prior to the first dismissal taking effect if employees are to be made redundant in a 90 day period. Standard 5 45 days notice to BIS is required prior to the first dismissal taking effect if More than 100 employees are to be made redundant in a 90 day period. Standard 6 No Notification to the BIS is required for less than 20 employees being made redundant. CONSULTATION Standard 7 If the proposal is that 20 or more employees are to be dismissed as redundant over a 90 day period or less then The Action Group has a statutory duty to consult with any recognised trade union representatives and any independent trade union representatives. This is called Collective Consultation. Standard 8 5

6 Consultation should begin in good time and be completed before any redundancy notices are issued. (time permitting) Consultation must begin: At least 30 days before first dismissal takes effect for employees At least 45 days before first dismissal takes effect for more than 100 employees Standard 9 There is a statutory duty to disclose information in writing to the appropriate representatives. This information must include: Reasons for the proposal Numbers and descriptions of employees it is proposed to dismiss as redundant Number of employees who fit the descriptions employed at the establishment in question Selection criteria to be used How the dismissals are to be carried out and over what period Method to be used in calculating redundancy payments to those dismissed Form HR1 from the insolvency service is to be used to notify BIS of the consultation Standard 10 Consultation with individuals within the categories of jobs identified as redundant needs to take place. At this meeting the individual has the right to be accompanied by their union rep or a colleague. This discussion should include: Why and how individuals have been selected Possible ways of avoiding redundancy Possible alternative work FIXED TERM CONTRACTS Standard 11 Staff on a fixed term contract who have worked less than 2 years are not classified as redundant. However, if they have continually worked for the organisation for more than 2 years by the date of dismissal they will be eligible for redundancy payments. SUPPORT Standard 12 For those employees identified as being made redundant, they will be given reasonable time to attend interviews with other organisations, arrange training courses etc. Standard 13 The HR Team will also be available to advise and support employees where possible. 6

7 Standard 14 The Employee Assistance Programme is also available to all employees SELECTION CRITERIA Standard 15 Where there is a choice between employees the selection has to be fair and objective. In all cases of collective redundancy the selection criteria will be agreed with the recognised trade unions. Standard 16 Objective criteria for redundancy may include Voluntary Redundancy Necessary qualifications and registration Skills and expertise Discipline Performance / capability issues Poor attendance/sickness record (where provisions of the Equality Act 2010 do not apply) Length of service Early retirement NOTICE OF TERMINATION Standard 17 Where a redundancy is confirmed, written notice of termination will be given. All employees are entitled to notice of termination of employment in accordance with their employment contract. Standard 18 Employment Protection legislation sets out minimum notice periods where an employee has been continuously employed for one month or more and these are: Continuous employment More than 1 month and less than 2 years Notice period 1 week 2 years 12 years 1 week for every year of service to a maximum of 12 weeks More than 12 years 12 weeks Standard 19 7

8 Completed years service count up to the date termination. Standard 20 It may not be necessary or desirable for the employee to work their notice period and The Action Group reserve the right to agree this arrangement with the employee. Standard 21 In exceptional circumstances there may be insufficient time for the notice period to take effect, employees will then be paid in lieu of notice. ANNUAL LEAVE Standard 22 Annual leave is calculated up to the date of the termination of employment. Managers should agree wherever possible for the leave to be taken during the notice period. Where this is not possible payment will be made on termination for any outstanding annual leave. REDUNDANCY PAY Standard 23 An employee is entitled to statutory redundancy pay only if they have completed at least 2 years service by the date of the termination of their employment. Standard 24 Care must be taken when calculating pay for an employee who may have joined The Action Group before their 17 th birthday. Standard 25 For each completed year of service with The Action Group, up to a maximum of 20 years, an employee is entitled to: For each year of service at age less than 22 ½ a weeks pay per year For each year of service at age weeks pay per year For each year of service at age 41 plus 1½ weeks pay per year Standard 26 When calculating a weeks pay for redundancy pay purposes the average weekly earnings will be used for each employee using their actual salary. The average will be 8

9 taken from the previous 6 months employment prior to notice being issued A week s pay is capped by legislation annually. Standard 27 Redundancy pay (including any severance pay) under 30,000 is not taxable Standard 28 Statutory redundancy payments are not made: Where formal notice of redundancy has not been issued Where an employee has less than 2 years service Where an employee accepts an offer of re-engagement within 12 weeks of being made redundant. Where an employee unreasonably refuses an offer of suitable alternative employment made before their employment is terminated. Where the employee is a casual worker and therefore does not have at least 2 years continuous employment. VOLUNTARY REDUNDANCY SCHEME Standard 29 The Action Group may seek voluntary redundancies in the first instance, however, it is a management decision to select from those applicants who will take voluntary redundancy based on service need. Standard 30 Where an employee makes a successful application for voluntary redundancy The Action Group will base the payment on the same calculations as those in the statutory scheme plus an ex-gratia payment made on a sliding scale, based on length of continuous service. 12months service up to 5 years over 5 years service up to 10 years over 10 years service up to 15 years over 15 years service up to 20 years over 20 years service up to 25 years over 25 years service 1 months gross pay 2 months gross pay 3 months gross pay 4 months gross pay 5 months gross pay 6 months gross pay 9

10 REDEPLOYMENT Standard 31 Where an employee is facing redundancy they will be entitled to be given prior consideration for alternative employment where a vacancy arises. Standard 32 An employee can express an interest in an alternative post where it is of a lesser status, conditions and pay scale. They do this in the full knowledge and voluntarily, that they will receive the pay scale for the lower post, Standard 33 The line manager of the employee expressing an interest in alternative employment must supply a written reference and a copy of the last Appraisal to Human Resource Department prior to the assessment Standard 34 An assessment will take place with the employee by a panel, which will include an independent manager from another service area from the one where the vacancy has arisen Standard 35 An employee will be entitled to redeployment should the panel conclude that they meet the essential criteria for the post with reasonable training (e.g. In-house training or a short course) and support Standard 36 If more than one employee expresses an interest in a vacancy, the panel will offer the redeployment to the most suitable person for the post, through a competitive interview process. Standard 37 Employees wishing to apply for a post of a higher grade or salary must do so in the normal way, with no prior consideration, including application form, two references Standard 38 Statutory trial periods occur when an employee whose employment is terminated as a result of a redundancy is offered alternative employment. Under current legislation the maximum trial period is 4 weeks. Until the end of that trial period the employee remains entitled to a statutory redundancy payment. Standard 39 10

11 Where an employee accepts a post as an alternative to redundancy the terms and conditions of the new post will apply form the date of commencement in that post. Standard 40 Where an employee accepts an alternative post they will no longer be facing redundancy and all entitlements to redundancy will be withdrawn. MATERNITY AND REDUNDANCY Standard 41 Employees who are pregnant or on maternity/paternity leave must not be selected for redundancy for that reason alone. Standard 42 Employees on maternity/paternity leave must be included formally in the period of consultation. Standard 43 Notice of redundancy should be issued to employees who are pregnant or on maternity/paternity leave at the same time as other employee s, however it needs to be clearly expressed that their statutory maternity/paternity provisions take precedent and they will not be made redundant until that provision has expired. APPEAL AGAINST TERMINATION Standard 44 The termination of a contract as a redundancy is a dismissal in law and as such the employee has a right of appeal against that dismissal. Standard 45 An employee wishing to appeal against a dismissal for reason of redundancy must do so within 7 days of the notice of dismissal. The grounds for the appeal must be in writing and addressed to The Senior Manager of Human Resources. Standard 46 The Action Group will hear the appeal within 2 months of receipt of the letter. Standard 47 At the appeal hearing the employee will present their grounds for appeal first, after which The Senior Manager will present a response, which will include a clear account of the 11

12 reasons for dismissal, details of the process taken for consultation and any steps taken to avoid redundancy. Standard 48 The employee will be informed of the outcome in writing within 7 days of the hearing. 12


14 APPENDIX 2 - REDEPLOYMENT FORM This form must be completed within 7 days by employees potentially facing redundancy where an alternative employment has been identified Name: Job Title: Grade: Team Date Being Made Redundant: Telephone No: Mobile Telephone Number: Home Address: Which post/s would you wish to be considered for? 1. Current Employment Please give a brief description of your current duties/responsibilities. Attach a job description if possible. 2. Past Employment 14

15 Please give brief details of previous employment which is relevant to the post you wish to be given prior consideration for 3. Other Information Please give brief details of any other relevant experience or skills (not necessarily at work). 4. Training and Qualifications Please list any relevant training/courses attended/qualifications. 6. Additional Information 15

16 Please give details of work you are able to consider; whether full-time or part-time, any other work-related conditions. NOTE: Your Line Manager will be asked to comment on your suitability for this vacancy through an internal reference and or your latest Appraisal Signed: Signed: The completed form must be returned to you Senior Manager: Human Resource You should keep a copy of this form. 16

17 ANNEX 3 - REDUNDANCY SELECTION CRITERIA AND SCORING MATRIX Employee Name Service Team Preferred Address if different to cascade Contact telephone number Post Title Candidate Code CRITERIA EVIDENCE USED SCORE NOTES Absence Discipline Capability Knowledge Experience Relevant Qualification TOTAL Length of Service TIE BREAKER QUESTION ONLY TOTAL: Signed:. Post Title:. Date: 17

18 Selection Scoring Criteria Absence The use of absence as a selection criterion will require up to date records. Care should be taken not to include time taken off for maternity or paternity leave; maternity related sickness or disability leave. The following should not be calculated as an absence for this redundancy purpose; adoption leave, training, jury / witness service Territorial Army leave or trade union undertakings. If unsure about what is excluded contact Hr for advice and guidance. If in doubt contact HR for advice. Score Definition 10 No periods of absence in the last 12 months periods of absence in the last 12 months periods of absence in the last 12 months periods of absence in the last 12 months 0 8+ periods of absence in the last 12 months (Any sickness absence due to DDA criteria that has been given disability leave will have the disability leave days deducted from the total absence they scored in a rolling 12 month period. Any individual on maternity will have only absence not related to the pregnancy or birth calculated) Discipline Score Definition 10 No live disciplinary sanctions 8 Live informal Warning 6 Live Formal Verbal warning 4 Live Written warning 0 Live Final Written Warning 18

19 Capability Score Definition 10 Not on any capability process for the past 2 years 8 Has not been on any capability process in the past 12 months 6 On an formal stage one capability process 4 On a formal stage two capability process 0 On a formal Stage three or greater capability process Knowledge Score Definition 10 Displays the full range of knowledge required for the role 8 Displays core knowledge required for the role 6 Displays some of the required knowledge, but there are clearly identifiable gaps in knowledge required for the role 4 Displays limited knowledge in relation to the job role 0 Has insufficient knowledge to operate effectively without supervision 19

20 Experience Score Definition 10 Has a broad and varied experience which is highly relevant to the role 8 Has a good range of experience gained in relevant settings, required for the post 6 Has some good experience, but there are clearly identifiable gaps in experience 4 Has limited previous experience in relation to the job role 0 Has no previous experience of the job role Relevant Qualifications Score Definition 10 Relevant Degree 8 Relevant professional qualification 6 Relevant SVQ 3-5 Qualification (or equivalent) 4 Relevant SVQ 1-2 Qualification (or Equivalent) 0 No Qualifications Length of service Score Definition 5 Greater than 10 years service 4 Between 5 and 10 years service 3 Between 1 and 5 years service 2 Between 6-12 months length of service 20

21 0 Less than 6 months service (this question is only used in the event when scores are equal) 21