VERSION 4 DERBYSHIRE FIRE & RESCUE SERVICE REDUNDANCY PROCEDURE

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1 VERSION 4 DERBYSHIRE FIRE & RESCUE SERVICE REDUNDANCY PROCEDURE July 2009 NO. OF PAGES 11 SECTION 1 SECTION 2 SECTION 3 SECTION 4 SECTION 5 SECTION 6 SECTION 7 SECTION 8 SECTION 9 SECTION 10 SECTION 11 SECTION 12 SECTION 13 INTRODUCTION PRELIMINARY CONSIDERATION OF REDUNDANCY SITUATION CONSULTATION PROCESS VOLUNTARY REDUNDANCY COMPULSORY REDUNDANCY REDUNDANCY WHILST ON MATERNITY / SICK LEAVE SECONDMENTS / TEMPORARY PROMOTIONS FIXED TERM CONTRACTS NOTICE PERIODS APPEALS TIME OFF TO SECURE FUTURE ALTERNATIVE EMPLOYMENT SUPPORT AND ADVICE SUPPORT FOR COLLEAGUES OF THOSE WHO ARE IN A REDUNDANCY SITUATION Employment Policy: Redundancy Procedure v 1.1 1

2 SECTION 14 SECTION 15 SECTION 16 SECTION 17 SECTION 18 APPENDIX 1 LOCAL GOVERNMENT PENSION SCHEME AND REDUNDANCY REDUNDANCY PAYMENTS TAXATION OF PAYMENTS LOST ENTITLEMENT TO A REDUNDANCY PAYMENT EQUALITY AND DIVERSITY AT THE HEARING Employment Policy: Redundancy Procedure v 1.1 2

3 REDUNDANCY PROCEDURE 1. INTRODUCTION 1.1 This procedure is designed to provide a framework to support the operation of the Redundancy Policy. 2. PRELIMINARY CONSIDERATION OF REDUNDANCY SITUATION 2.1 A report to the Strategic Leadership Team will be prepared by the relevant Area Manager with support available from a HR Adviser. 2.2 Subject to the approval of the Strategic Leadership Team the report will be sent to the Fire Authority or Human Resources Committee as appropriate, as an exempt item seeking approval to commence the consultation process. The formal consultation exercise may not be carried out until the proposal receives the support of the Fire Authority. 2.3 Preparation should be in place for those persons who potentially may be at risk to be advised of the situation as soon as practicably possible, following the Fire Authority meeting. This is to confirm to the affected persons the decision of the Fire Authority where approval has been given and for consultation with the relevant Trade Unions to commence. 3. CONSULTATION PROCESS Consultation with Trade Unions 3.1 Consultation with the recognised Trade Unions will take place as soon as is procedurally and practicably possible whenever redundancy is contemplated. 3.2 In particular, for the purpose of consultation, DFRS will advise the relevant Trade Union(s) in writing of: The reason(s) for the redundancy situation; The numbers and description of the staff which it proposes to make redundant and the total numbers of staff of that description; The criteria and means proposed to be used for selection; How the dismissals are to be carried out, including the period over which the dismissals are proposed to take effect; Employment Policy: Redundancy Procedure v 1.1 3

4 3.3 DFRS will consult with the Trade Unions and affected individuals on these issues, in line with the timescales outlined in paragraph 7.9 of the Redundancy Policy. Consultation will also cover ways in which dismissals may be avoided or minimised, including whether there are opportunities for redeployment within the organisation. Individuals will be placed on the redeployment register from the commencement of formal consultation. (see Redeployment Policy section 8 ) 3.4 The selection criteria where necessary will have due regard for the principles of equality and may take into account such factors as disciplinary records, performance and appropriate skills and qualifications. 3.5 Whatever the selection criteria, DFRS reserves the right to retain employees on the grounds of business continuity where they have specialist knowledge, training and qualifications or to preserve organisational balance and these issues may also be included in the selection criteria. Consultation with Individuals 3.6 Every effort will be made to ensure that individual employees who are at risk will be kept informed and consulted on ways of avoiding redundancy, selection methods and suitable alternative work at the earliest opportunity. Wider corporate communications will also be provided to all employees as part of the consultation and implementation plans. 4. VOLUNTARY REDUNDANCY 4.1 Volunteers for redundancy (including those who are eligible for early retirement) may be considered from the same employment pool as the staff group at risk, where acceptance of redundancy by volunteers would reduce the risk of compulsory redundancy. 4.2 Consultation will take place with a view to seeking agreement between DFRS and the Trade Unions with regard to the criteria to be used in selecting the volunteers for redundancy. 4.3 DFRS may refuse to accept a volunteer for redundancy upon the basis that, for example, the individual has specialist knowledge, training or qualifications; in order to maintain organisational balance or for reasons of business continuity. 5. COMPULSORY REDUNDANCY 5.1 After careful consideration of all measures available, it may still be that the only means of effectively reducing staff is by compulsory redundancy. 5.2 Following the completion of the consultation process proposals will be implemented to enable the identification of the actual individuals for redundancy. Employment Policy: Redundancy Procedure v 1.1 4

5 5.3 HR Services will make arrangements for the calculation of redundancy payments and where appropriate for estimated pensionable benefits to be provided. 5.4 Affected individuals will then be met and formally notified about their impending redundancy (including being provided with notification of their entitlement to a redundancy payment) and where applicable pensionable benefits by their Area Manager, supported by a HR Adviser. Employees have a right to representation at any individual meetings with management. 5.5 Individuals will remain on the redeployment register throughout their notice period (see section 8 of the Redeployment Policy in relation to timescales for redeployment opportunities and contractual / compulsory redundancy notice periods). 6. REDUNDANCY WHILST ON MATERNITY / SICK LEAVE 6.1 Managers need to ensure that all employees who may potentially be made redundant are contacted including those absent from work due to maternity leave. They should be consulted as soon as reasonably possible and kept informed thereafter as appropriate. 6.2 An employee on maternity leave who is under notice of dismissal on the grounds of redundancy will be offered any suitable alternative vacancy available in preference to other employees where they meet the essential criteria. 6.3 If an employee who is pregnant or on maternity leave is made redundant they will be entitled to a written statement of the reason for dismissal 6.4 Managers need to ensure that all employees including those absent from work due to sick leave are consulted as soon as reasonably possible and kept informed thereafter as appropriate. The Welfare and Attendance Policy will still be implemented regardless of the redundancy situation. 7. SECONDMENTS / TEMPORARY PROMOTIONS 7.1 Where an employee has been seconded to another role, but their substantive post is at risk of redundancy, then the redundancy procedures will be implemented for that employee and the secondment will be terminated on termination of employment from the substantive post. 7.2 Where an employee has a temporary contract to undertake another role, but their substantive post is at risk of redundancy, then the employment may continue in accordance with the temporary contract where it is considered to be suitable alternative employment, and the redundancy procedure implemented so that the Employment Policy: Redundancy Procedure v 1.1 5

6 employment is terminated by reason or redundancy at the conclusion of the temporary contract. 7.3 In line with the reasons outlined in the temporary / secondment / promotions procedure, temporary appointments may be terminated however, prior to the original termination date. 8. FIXED TERM CONTRACTS 8.1 A redundancy situation may arise on the termination of a fixed-term contract. If so, the redundancy procedure will be implemented so that employment will terminate, as specified in the contract. 9. NOTICE PERIODS 9.1 Notice will be issued in writing following the end of the formal consultation period. The amount of notice the employee is entitled to receive, unless stated otherwise within the contract of employment, is set out below. Length of continuous service One month two years Two three years Each additional year Twelve years plus Number of weeks notice One Two One Twelve 9.2 Upon consideration of individual circumstances, an employee may be offered pay in lieu of notice or may not be required to attend at work throughout the period of notice, but conditions may be imposed to prevent them from attending on DFRS premises or undertaking other work. 9.3 Again, upon consideration of individual circumstances, it may be agreed that an employee who is to made redundant may leave without completing the full period of notice, but without penalty in terms of any loss of entitlement to a redundancy payment. Where this is agreed, confirmation will be provided in writing by the Area Manager. In determining whether the full notice period should be served, DFRS will consider the requirement for business continuity. Employment Policy: Redundancy Procedure v 1.1 6

7 10. APPEALS 10.1 Any member of staff made or warned that they are likely to be made redundant will have the right to appeal, following receipt of the notice of dismissal, if they consider; That a redundancy situation has not arisen They have been unfairly selected There are special circumstances justifying their retention Appeals should be lodged, in writing to the Head of HR Services, stating the full grounds for the appeal within 14 calendar days of the notification of dismissal The appeal will be heard by a Principal Officer of the Authority within 21 calendar days after receiving the appeal. Individuals have the right to be accompanied by a colleague or a representative of a recognised Trade Union. A HR Adviser will accompany the Principal Officer hearing the appeal The framework for the appeals process to be followed outlined at appendix Where the employee is under notice of redundancy the notice period will continue to run and will not be suspended whilst the appeal is being heard. If the employment contact has been terminated, the appeal can still be heard after the last day of service The decision of the Principal Officer hearing the appeal is final If the appeal is successful in whole or in part, the notice of dismissal will be modified or withdrawn, according to the circumstances. 11. TIME OFF TO SECURE FUTURE ALTERNATIVE EMPLOYMENT 11.1 Employees under notice of dismissal by reason of redundancy have the legal right to take reasonable time off during their working hours, before the end of their notice period either to look for work, attend interviews or arrange training for future employment. Employees will be paid at plain time for such absences where evidence can be provided of appointments (internal or external) arranged. Paid time would need to be recorded on the E60 classed as Other Leave What is reasonable will depend on the circumstances of each case and each request for time off will be considered on its own merits by the Station Manager / Head of Department taking into account the needs of the Service, the amount of time previously granted to the individual, the amount of notice given and the specific reason for the request. Employment Policy: Redundancy Procedure v 1.1 7

8 12. SUPPORT AND ADVICE 12.1 DFRS recognises the importance of employee welfare. To this end, the Occupational Health Unit will provide welfare support and a confidential counselling service to all employees who are affected by a redundancy situation The HR Services team will provide employees under notice of redundancy with support and assistance whilst seeking alternative employment. A skills audit will be undertaken in line with the Redeployment Policy. Additional support may include advice on writing curriculum vitae, interview techniques and identification of training needs and opportunities The Learning and Development Manager will where reasonably practicable provide access to training opportunities in response to their training needs identified in accordance with paragraph 12.2 for those employees who have been identified as at risk of redundancy. 13. SUPPORT FOR COLLEAGUES OF THOSE WHO ARE IN A REDUNDANCY SITUATION 13.1 In a redundancy situation, the immediate priority is those employees who will be directly affected. However, DFRS recognises that other employees will be aware of the situation and considering the security of their own future DFRS is seeking to maintain the high morale of its employees, this policy has been written to provide the best support provisions practicable. In addition to treating employees who may find themselves in a redundancy or redeployment position in a fair and sensitive way, DFRS will endeavour to; Give the workforce a full explanation of the situation and explain the policies and practices adopted to those being made redundant (subject to confidentiality); Demonstrate the necessity for change; Handle redundancies and redeployments in a fair, transparent and sensitive way; Provide a forward looking, positive attitude for the future and show employees the value of their role. Where required/necessary, conduct individual discussions with remaining team members to address any fears or concerns they may have and reassure them of their continuing role. Ensure redundancies are handled in accordance with current legislation. Ensure redundancies are handled by staff who are trained and conversant in the policy and legislation. Offer support and counselling services to individuals who are both directly and indirectly affected by the situation. Employment Policy: Redundancy Procedure v 1.1 8

9 14. LOCAL GOVERNMENT PENSION SCHEME AND REDUNDANCY 14.1 Should an employee require advice on pension entitlement (where eligible) and the possibility of immediate benefits, this can be obtained from HR Services or from the Superannuation Department at Derbyshire County Council, County Hall Matlock. 15. REDUNDANCY PAYMENTS 15.1 Employees with two years or more continuous service are eligible for a statutory redundancy payment Statutory Redundancy Payments are based upon the age of the employee, length of service (up to a maximum of 20 years) and the maximum statutory weekly earnings. For each completed year of service from age inclusive For each completed year of service from age inclusive For each completed year of service from age inclusive ½ weeks pay 1 weeks pay 1½ weeks pay 15.3 The calculation for statutory redundancy payment is for a maximum of 30 weeks. 16. TAXATION OF PAYMENTS 16.1 Compensation for loss of employment, i.e. lump sum statutory redundancy payments are tax free up to a maximum statutory limit applicable at the time. Further information on the maximum limits are available from HR Services. 17. LOST ENTITLEMENT TO A REDUNDANCY PAYMENT 17.1 An employee who would normally be entitled to a redundancy payment may lose this entitlement where: The employee commits a gross act of misconduct and is dismissed; or The employee leaves before the notice period has expired, without the prior consent of DFRS; or The employee accepts a post with a body under the modification order which commences prior to the end of their contract with DFRS and where the employment starts within 4 weeks of the date of redundancy. Employment Policy: Redundancy Procedure v 1.1 9

10 18. EQUALITY AND DIVERSITY 18.1 DFRS will ensure that all employees are treated within its core values and fairness and dignity policies. No employee will be discriminated against under this policy as a result of any equality and diversity issues DFRS has a duty to consider the needs and requirements of the community and employees affected by it s policies and procedures. Therefore an Equality Impact Assessment (EIA) will be carried out in relation to the selection criteria Employment Policy: Redundancy Procedure v

11 APPENDIX 1 AT THE HEARING The Chair will introduce the panel; provide an outline of how the hearing will be conducted. The Chair will clarify the grounds for appeal with the employee. The following is a schedule to be followed. (The Chair may alter the schedule if appropriate.) The employee or representative presents the grounds for appeal and may call witnesses The Management may ask questions The panel may ask questions Management will present the response and call management witnesses The employee and or representative may ask questions of Management and witnesses The panel may ask questions of the Management and witnesses Management may make a short summary of the case The employee or representative may make a short summary of the case The panel will adjourn to consider the issues carefully before coming to a decision. If appropriate the decision can be verbally provided to all parties on the same day but must be followed up in writing to the employee. Employment Policy: Redundancy Procedure v

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