Organisational Change Policy and Procedure

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1 Organisational Change Policy & Procedure Document Type Author Owner (Dept) Organisational Change Policy and Procedure Senior Management Team Human Resources Date of Review July 2013

2 List of Contents Page No 1. Policy Statement Scope Principles of the Policy Consultation Collective Consultation with the Recognised Trade Union Group and Individual Consultation with Employees Matching Procedure Redeployment Procedure Redundancy Procedure Definition of Redundancy Voluntary Redundancy Suitable Alternative Employment Selection Criteria Redundancy Pay Support for Employees Review of Policy... 9 Page 2

3 1. Policy Statement The Mungo Foundation has an ambitious agenda to ensure that it remains competitive and flexible to meet the changing way that social care will be delivered in the future. This will inevitably require: a) Changes in the way The Mungo Foundation is structured and organised to ensure the whole organisation is focused on the delivery of care; b) Changes in business processes, particularly in the use of information technology, to improve efficiency, performance and client responsiveness; c) Changes in the way employees work and their terms and conditions to ensure the organisation continues to recruit, develop and retain a workforce capable of delivering its agenda in a challenging, rapidly changing and highly competitive market. The Mungo Foundation seeks to maintain job security, wherever practicable, but recognises that due to the changing social care agenda, funding considerations and other constraints placed upon it, the potential for organisational change through project restructures, closures and/or the reduction in demand for services of a particular type, is an increasing reality within the voluntary sector. Where organisational change is deemed necessary, The Mungo Foundation will seek, wherever possible, to match or redeploy those employees affected to other suitable posts within the organisation, assuming such vacancies exist or are likely to exist within a reasonable timeframe. The Mungo Foundation will seek to avoid making compulsory redundancies wherever possible and will therefore, in addition to considering redeployment options, give careful consideration to the reduction, or elimination, of overtime and agency/relief usage, reduced hours, working options, restrictions on recruitment, voluntary down grading and voluntary redundancies within the categories of employees affected. 2. Scope This policy applies to employees of The Mungo Foundation. 3. Principles of the Policy As part of the planning for organisational change this policy is designed to ensure that all aspects of the change process consultation, matching, redeployment and/or redundancy is underpinned by the following key principles: All reasonable efforts will be made to avoid compulsory redundancies and to minimise the impact of such redundancies; Every effort will be made to either match or redeploy employees to other available suitable posts across the organisation; Page 3

4 4. Consultation Where an employee expresses an interest in voluntary severance this will be considered on a case by case basis; In all organisational change situations the organisation will treat all employees fairly and consistently in line with good HR practice and legislative parameters; Every effort will be made to manage organisational change in a sensitive and timely manner to minimise disruption to employees and service users resulting from the changes The Mungo Foundation will consult with representatives of the recognised Trade Union regarding the potential impact of the proposed changes and throughout the change process; All employees, regardless of whether they are members of a recognised Trade Union who are likely to be affected by proposed changes, will be consulted with on a group and an individual basis. 4.1 Collective Consultation with the Recognised Trade Union Where The Mungo Foundation proposes to make organisational changes which may result in a redundancy situation, it will adhere to the statutory duty to consult with representatives of its recognised Trade Union. Not withstanding this statutory duty, The Mungo Foundation will, regardless of the number of employees involved, undertake to consult with representatives of the recognised Trade Union when the possibility of a redundancy situation has arisen and to commence this consultation period at least 30 days before the first dismissal takes effect. The Mungo Foundation will disclose to the representatives of the recognised Trade Union in order to allow meaningful consultation to take place, the reason for the proposed redundancies, the number and categories of employees affected, the total number of employees employed in the workplace(s) in question, the proposed method of selection, the method of calculating any payments and the timescale over which the dismissals would take place. Consultation should be meaningful and undertaken with a view to reaching agreement. If it has not been completed before the end of the 30 day (or 90 day) period, the timescale should be extended however; agreement does not need to have been reached for the consultation process to be considered complete. Dismissal notices will not be issued during the consultation period and consultation with the recognised Trade Union will precede any public announcements of the changes being made. 4.2 Group and Individual Consultation with Employees All employees, whether or not they are members of the recognised Trade Union, who are potentially affected by proposed organisational changes will also be consulted on a group and an individual basis. The following procedure will be used in this regard: Page 4

5 5. Matching Procedure A meeting will be held with the group of employees affected. This will be attended by the relevant Manager(s), Service Manager and Directors of Human Resources and Services and Development. Where the communication is over a number of locations a scripted statement will be prepared to ensure that all employees receive the same information. Trade Union representatives will be invited to attend these meetings. Following this meeting each employee will be provided in writing with a statement of the circumstances which have resulted in The Mungo Foundation proposing the organisational changes. They will be invited to attend a consultation meeting with the appropriate Manager or Director to discuss the matter further. The employee will be advised that they have the right to be accompanied to this meeting by a work colleague or Trade Union representative. At this meeting the potential changes will be discussed and options with regard to the employee s future employment, including suitable alternative employment where available, will be explored. Suggestions from the employee will also be invited; Where the organisational change is large scale, The Mungo Foundation may also hold project team meetings to capture concerns and ideas at a team level as part of the consultation process. A second meeting with the employee will usually be scheduled to allow time for consideration of the options by both parties. The employee will be advised that they may be accompanied to this second meeting by a work colleague or trade union representative. At the second meeting the options explored by both parties will be discussed and a decision will be reached at, or following, this meeting on the employment implications for that employee. The decision will be confirmed in writing. Where the outcome, following the individual consultation period is dismissal through redundancy, the written notification of the outcome will be the formal written notice of redundancy. It will outline the redundancy payment and notice period, as well as the appeal process, and give details of reasonable paid time off during the notice period and options for practical support. Where organisational change results in new posts being developed that are significantly similar to existing posts then the holder of the existing post shall be considered for matching into the new post, without the requirement for interview. This will occur when the following conditions are met: The functions and responsibilities of the posts are significantly similar, i.e. organisational relationships, job purpose, main duties, communications, demands of the job, knowledge, skills and experience required, working environment. Page 5

6 No other employee can be identified as undertaking a directly comparable post, or where there is a group of similar employees, the number of posts is equal to the number of comparable individuals. 6. Redeployment Procedure All managers are expected to co-operate and to take a positive approach towards seeking alternative jobs for employees at risk of redundancy, recognising that redeployment is an issue for the organisation as a whole, and not merely an issue for the affected Project to resolve. During any organisational change process an immediate freeze will be placed on relevant vacancies throughout the organisation and will be restricted in the first instance to those employees affected by the change. A database of employees affected and posts available will be maintained by Human Resources. Where a relevant vacancy has already been advertised and a suitable candidate can be identified out of the list of employees being made redundant, that vacancy will be withdrawn, even where candidates have already applied. Employees who are at risk of redundancy must be given the first opportunity to be interviewed for suitable alternative employment before any internal or external candidates are interviewed. Employees will be asked to complete a shortened application form in preparation for interview. Employees at risk of redundancy are not automatically entitled to be appointed to vacant posts as they will have to demonstrate at interview that they have the skills required for the post, or could be trained within a reasonable time frame to undertake the post. Where an employee is successful in obtaining a transfer to a suitable vacancy at the same grade, that employee will transfer on their current terms and conditions. In all redeployment interview situations an Human Resources representative should be present. Employees can apply for a vacant higher-graded post where they have the relevant skills and experience. This would be on a competitive basis and would require a full application process to be followed. Employees who are unsuccessful in obtaining an equivalent or higher grade post will be eligible to be slotted into alternative employment at a lower grade. In these circumstances consideration will be given to protecting the current salary for a 3 month period, after which they will revert to the top increment of the salary scale that applies to the post they now hold. Employees in these circumstances have the right to a four week trial period (or a longer trial period if mutually agreed) in the new post to determine if the post is suitable for them without losing any right to a redundancy payment should they, at end of the trial period, determine that the post is not suitable for them. Should no suitable candidate be found through the redeployment process, and the hiring manager has objective, justifiable reasons for not appointing a Page 6

7 person faced with redundancy the matter should be discussed with the Director of Human Resources to determine whether the post can be released to undergo the normal recruitment process. Employees who accept a transfer to another location as an alternative to redundancy will not be entitled to any travel, removal or related expenses as a result of the transfer, other than to reasonable additional traveling expenses during the trial period (where a trial period is applicable). 7. Redundancy Procedure 7.1 Definition of Redundancy An employee is dismissed by reason of redundancy if the dismissal is wholly or mainly attributable to: or The fact that their employer has ceased, or intends to cease, to carry on the business for the purposes of which the employee was so employed or to carry on in the business in the place where the employee was employed; The fact that the requirements of the business for employees to carry out work of a particular kind, in the place where they were employed, has ceased or diminished or are expected to cease or diminish. 7.2 Voluntary Redundancy If during the course of an organisational change, an employee affected by the change expresses a desire to leave on a voluntary redundancy basis, each case will be considered on an individual basis. Redundancy estimates will be provided in this case on a no commitment on either side basis. There may also be occasion where The Mungo Foundation decides to write to a group of employees in advance of a proposed organisational change to offer voluntary redundancy on a no commitment basis, in an effort to mitigate against potential compulsory redundancy. This would be done in full consultation with the Trade Union. 7.3 Suitable Alternative Employment Where employment deemed as suitable alternative employment for an employee affected by organisational change is refused by the employee, each case should be considered on its individual merits with regard to the forfeiture of redundancy rights. If challenged at law, it would be for the Employment Tribunal to decide on the facts of the case whether or not suitable alternative employment had been offered. 7.4 Selection Criteria Where organisational change requires a specified number of posts to be lost from the total employee group then selection criteria will be applied. In this event the selection criteria will be applied to all people in the identified group Page 7

8 of posts with equivalent or closely related duties and responsibilities. The pool will be selected objectively on the basis of the criteria. The first criterion for selection will be based on the need for the post in line with the definition of redundancy as outlined above. Where it is determined that a post or group of posts is no longer required then the selection decision is made automatically, e.g. a project closure. When a choice has to be made between employees on selection for redundancy, individuals will be assessed against a number of factors, including: Qualifications, Performance Record, Disciplinary Record, and Attendance. Scores will then be compared and the selection for redundancy will be made on the basis of the employee(s) with the lowest scoring. This process may also be used where the organisational change results in similar and newly created posts being defined as an alternative to asking every employee to reapply for their post and undergo interview. 7.5 Redundancy Pay The Mungo Foundation will follow the statutory redundancy procedure in calculating the number of weeks and amount of redundancy pay due to any particular employees. At present, Government Legislation dictates that only employees with at least 2 years continuous service are entitled to a redundancy payment. An employee who resigns in anticipation of redundancy, but prior to formal written notice of redundancy being given, will not be regarded as redundant and hence will not be entitled to redundancy pay. Employees, who are on notice of redundancy may leave by mutual agreement prior to their effective date of termination, should they obtain suitable employment elsewhere, without losing any entitlement to redundancy pay. 7.6 Support for Employees The Mungo Foundation is committed to offering practical assistance to employees identified for compulsory redundancy. This assistance will be aimed at helping individuals come to terms with the loss of employment and also practical support in finding alternative employment with other employers in the event that redeployment is not possible. The types of assistance the organisation can offer include: Access to Counselling Services, e.g. ECS, Citizens Advice; Access to relevant skills training courses, workshops; Advice and guidance on job seeking e.g. interview skills, C.V. preparation etc. via JobCentre plus; Appropriate paid time off; Access to independent financial/benefits advice; Access to independent pension advice. Page 8

9 8. Review of Policy The policy will be reviewed every 24 months or sooner if required in order to comply with legislative requirements. Page 9

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