Learning Accord Multi Academy Trust. Redundancy Policy

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1 Learning Accord Multi Academy Trust Redundancy Policy Version 12/16 Name of Policy Writer EducateHR Ltd Date Written April 213 Last Reviewed December 216 Next Review Due December 217 Page 1 of 21

2 Contents Page 1. Introduction Purpose and scope Definition of redundancy Consultation Disclosure of information legal requirements Measures to avoid redundancy Voluntary redundancy Early retirement Selection criteria Skills audit Matching process selection criteria/skills audit Notification of potential redundancy Representation meeting Redundancy notification letter Appeal Eligibility for a redundancy payment Notice periods Other policies and procedures... 8 Appendix 1: Draft timetable for teacher redundancies... 9 Appendix 2: Selection criteria teaching staff... 1 Appendix 3: Selection criteria support staff Appendix 4: Ready reckoner for redundancy payments... 2 Page 2 of 21

3 1. Introduction 1.1 All employers are advised to establish a formal policy on redundancy (ACAS). The aim of this policy is to provide a fair and consistent approach to be followed in situations where the possibility of redundancy has been identified. In such situations, the academy trust will aim to provide appropriate support to those staff affected, and will ensure that their dignity is respected. 1.2 The academy trust will try to minimise the effect of redundancies through careful planning including vacancy control, natural wastage, redeployment and retraining where possible. 1.3 The academy trust is committed to meaningful consultation with employees and recognised trade unions regarding proposed organisational changes. 2. Purpose and scope 2.1 The academy trust recognises the need to ensure that staff feel secure and are appropriately supported throughout their employment. The aim throughout is to ensure that staff are treated reasonably and in accordance with the principles of fairness and justice. 2.2 If there are equality and diversity issues that are relevant to employees who are at risk of redundancy, these issues should be made known to those involved in managing this process and appropriate support provided by the academy trust. 2.3 This policy applies to all staff employed on contracts of employment covering teachers and support/associate staff within the academy trust, including those who are employed on successive fixed term/temporary contracts of at least 2 years or more. 3. Definition of redundancy 3.1 Under the Employment Rights Act 1996, redundancy arises when employees are dismissed for one of the following reasons: the employer has ceased (or intends to cease) to carry on the business for the purposes of which the employee was so employed the employer has ceased (or intends to cease) to carry on the business in the place where the employee was so employed the requirements of the business for employees to carry out work of a particular kind have ceased or diminished or are expected to cease or diminish the requirements of the business for the employees to carry out work of a particular kind, in the place where they were so employed, have ceased or are expected to cease or diminish. 4. Consultation 4.1 Consultation should be carried out with a view to reaching agreement and should include ways of avoiding the dismissals, reducing the number of employees to be dismissed and mitigating the effects of dismissal. 4.2 Consultation should begin in good time and be completed before any redundancy notices are issued. In addition, consultation must begin: Page 3 of 21

4 at least 3 days before the first dismissal takes effect if 2 to 99 employees are to be made redundant at one establishment over a period of 9 days or less at least 45 days before the first dismissal takes effect if 1 or more employees are to be made redundant at one establishment over a period of 9 days or less. 4.3 Staff and unions should be informed in writing of their invitation to attend a formal consultation meeting. 4.4 Staff will be advised of the potential for redundancies and the reasons for these and will be invited to make representations regarding means of avoiding or reducing the number of redundancies. 4.5 Throughout the consultation period, consideration will be given to any representations made and there may be ongoing discussion with the unions/employee(s) concerned. Employees will be given the opportunity to be represented by a work colleague or trade union representative in any formal meetings. If less than 2 employees are affected the consultation period will normally be no less than four working weeks and may be extended dependent on circumstances. 4.6 The 4-stage test historically accepted in employment tribunals is that fair consultation means: consultation where the proposals are still at a formative stage adequate information on which to respond adequate time in which to respond conscientious consideration by the employer of the response to consultation. 4.7 It is important that, along with union consultation, senior management consult with affected staff on an individual basis. A timetable of activities should be drawn up by senior management and, following consultation with unions, be distributed to staff and unions (see Draft Timetable - Appendix 1). 5. Disclosure of information - legal requirements 5.1 Employers should disclose in writing to the appropriate representatives the following information concerning proposals for redundancies so that those representatives can play a constructive part in the consultation process: the reasons for the proposals the numbers and descriptions of employees it is proposed to dismiss as redundant the total number of employees of any such description employed at the establishment in question the way in which employees will be selected for redundancy how the dismissals are to be carried out, taking account of any agreed procedure, including the period over which the dismissals are to take effect the method of calculating the amount of redundancy payments to be made to those who are dismissed. 5.2 This communication is generally referred to as a Section 188 letter, issue of which represents a statutory duty when the employer intends to make a minimum of 2 employees redundant within a 9-day period. Although not a statutory duty in other circumstances it Page 4 of 21

5 nonetheless constitutes good practice for an employer to use a similar format to communicate their proposals to any staff who may be at risk of redundancy. 5.3 The information will be handed to local employee representatives or may in exceptional circumstances be sent by post to an address notified to the employer. 6. Measures to avoid redundancy 6.1 Every effort will be made to reduce the number of possible compulsory redundancies by: natural wastage restricting the recruitment of permanent staff reducing the use of temporary staff filling vacancies from amongst existing employees (where appropriate) reducing hours of work, job share arrangements etc retraining staff or redeployment seeking volunteers for redundancy. 7. Voluntary redundancy 7.1 One strategy is for employees to volunteer to be considered for redundancy thus avoiding the need for compulsion. However, senior management will need to consider the balance of the skills and experience of remaining staff which may result in an application for voluntary redundancy being rejected. 8. Early retirement 8.1 If an employee volunteers for redundancy (or is made compulsorily redundant) they may, in particular cases, be eligible for early retirement and have access to their pension benefits. 8.2 Early retirement may involve a longer term financial commitment for the academy trust with different pension scheme rules applying to teachers and support staff. Senior management will therefore need to explore the costs and resources involved before final decisions are taken. 9. Selection criteria 9.1 The basis of selection will be determined by the academy trust s financial, economic, technical and organisational needs, curriculum needs and requirements. 9.2 Where a redundancy situation involves a pool of staff comprising a number of people larger than the number of posts to be made redundant, selection criteria will be used. However, depending on the situation the means of selection may be determined by the circumstances and may involve an interview process against set performance criteria for the post. 9.3 The purpose of selection criteria is to ensure that employees are not unfairly selected for redundancy. The chosen criteria must be consistently applied to all staff. 9.4 The criteria will be based on the necessity to retain a balanced workforce that has the appropriate skills to ensure continued success of the academy trust eg current and future Page 5 of 21

6 curriculum needs and priorities in the school improvement/development plan. Particular care will be taken to ensure that selection criteria are not directly or indirectly discriminatory on grounds of protected characteristics as outlined in the Equality Act 21. The Equality Act 21 makes it unlawful for an employer to treat a disabled person less favourably because of reason relating to their disability without a justifiable reason. Employers are therefore required to make reasonable adjustments to working conditions where that would help to accommodate a particular disabled person (ACAS) 9.5 When scoring on criteria such as absences, the academy trust will not count absences that might be connected to a disability suffered or claimed by the employee, or connected with a reason such as pregnancy. 9.6 The selection criteria will be objective, fair and explicit and will be provided to all staff. Trade unions will be consulted on the proposed criteria before selection takes place (see Selection Criteria - Appendices 2 and 3). 1. Skills audit 1.1 There should be a regular audit of skills, training and experience of all staff. Such audits should identify situations in which a teacher or member of support staff could offer second and even third subject areas as well as identifying particular interests and areas of recent training. 1.2 The academy trust s skills audit is a form requesting detailed information in specific sections. It enables an individual, dependent on the structure of the matrix, to provide the relevant information relating to their skills and qualifications. Employees will be expected to provide evidence of information eg qualification certificates etc. 1.3 Such audits will provide essential management information necessary to determine the future continuing professional development and deployment of staff within the academy trust. 1.4 In a redundancy situation the skills audit is used by the employer to identify the profile of the employee and to ascertain their suitability for positions in the academy trust and thus help in the selection process by matching the selection criteria and the skills audit. 1.5 A skills audit can also be utilised in a redeployment situation, and completion of the audit matrix can enable the individual to provide a breakdown of their skills, knowledge and qualifications to enable them to be redeployed into another suitable position. 11. Matching process - selection criteria/skills audit 11.1 The affected employees will be advised to include all relevant information in their skills audit and to ensure they fully complete the document in order that the headteacher/governors are apprised of the range and breadth of their skills and experience to inform the matching process To provide a fair and transparent process, all affected individuals will be asked to complete the same documentation. These responses will be then evaluated within the matrix and scored appropriately. The employee(s) with the lowest score(s) will be at risk of potential redundancy. Page 6 of 21

7 Employers need to show that in selecting a particular employee they had compared him or her in relation to the agreed selection criteria with those who might have been made redundant, and that, as a result, it emerged that the employee was fairly selected. (ACAS) This document should ideally be updated every year to enable academy trust management to have a clear picture of the skills, qualifications and experiences of their staff. 12. Notification of potential redundancy 12.1 Employees selected for redundancy (whether through the use of selection criteria or by interview process) will be notified in writing of their provisional selection for redundancy and invited to attend a Representation Meeting usually involving the decision makers Employees will be informed of the time and location of this meeting no less than 5 working days in advance of the meeting date The representation letter (invitation) will explain that the purpose of the meeting is to consider the potential termination of the employee's employment on the grounds of redundancy and will clarify that the employee is entitled to be represented by a trade union representative or work colleague. 13. Representation meeting 13.1 At the meeting the manager will explain the background including, where relevant, the application of selection criteria to the individual. The employee will be given a further opportunity to raise any factors he or she wishes to have considered, including any potential for continued employment Where the employee's representations relate to his or her assessment against the selection criteria the meeting may be adjourned if necessary to allow those who carried out the assessment to respond. The employee shall be informed of any changes to his/her assessment against the criteria or, alternatively, that the assessment is unchanged Following this meeting, and having regard to any representations made, the senior manager will confirm the decision in writing. If the decision is taken that the employee remains at risk of redundancy, the employee will be issued with a notice of redundancy. 14. Redundancy notification letter 14.1 The employee(s) will be notified in writing to confirm the decision that they are to be made redundant giving a termination date and the amount of redundancy pay. It may be appropriate to send a redundancy estimate along with the redundancy notification letter (employees will be asked to confirm length of service and weekly pay as detailed on the redundancy estimate prior to the ending of their employment contract) The notification letter, which may be either hand delivered or sent by post (normally by recorded delivery), will also inform the employee of their right of appeal, and to whom the appeal letter should be sent. Page 7 of 21

8 14.3 In addition to any redundancy payment entitlement employees should also be given the appropriate period of notice (or payment in lieu of notice) to which they are entitled The employee should also be advised that he or she will remain eligible to be considered for redeployment opportunities until his or her employment has ceased see Redeployment Policy. 15. Appeal 15.1 The employee should state in writing their grounds for appeal within 5 working days of receipt of the redundancy notification letter. The appeal hearing should be arranged within 1 working days of receipt of the appeal letter, and should be heard by a panel of at least 3 governors with no previous involvement in the redundancy process. 16. Eligibility for a redundancy payment 16.1 A redundancy payment is based on actual weekly pay and is due only if the employee has completed at least 2 years continuous service which may include service with another organisation on the Redundancy Modification Order list (this list recognises service from other organisations eg other maintained schools/academies and/or local authority service). For further information on redundancy calculations see the ready reckoner (Appendix 4). 17. Notice periods 17.1 The actual period of notice to be provided to staff will be in accordance with their contractual and statutory entitlements. Schools/academies should be mindful of teacher termination dates in order to appropriately manage a reduction in staffing and other resources ie the timeline should ensure that the school/academy trust meets the criteria for appropriate consultation and also ensure that management meet the deadline for the last date for notification of termination (ie at the end of each term). 18. Other policies and procedures 18.1 This policy will be supported by the following policies and procedures: Review and Restructure Policy Redeployment Policy Page 8 of 21

9 Appendix 1: Draft timetable for teacher redundancies Latest dates for action to be taken (DD/MM) Spring Summer Autumn 1 Headteacher and governors review future staffing needs involving HR provider 1/11 1/3 1/5 2 Inform unions affected employees and begin informal consultation with unions and staff (including seeking volunteers) 16/11 16/3 16/5 3 Formal consultation must commence lead by governors; trade unions to be given notification of redundancy situation, reasons for redundancy, potential selection criteria, etc. 1/12 1/4 1/6 4 School governors to conclude formal consultation process, including timetable, final version of redundancy selection criteria, etc. 3/12 29/4 29/6 5 Staffing committee meets and selects staff who are potentially to be made redundant using selection criteria 31/12 3/4 3/6 6 Staff individually notified in writing of decision and arrangements for representation meeting 1/1 1/5 1/7 7 Representation meeting(s) held with affected staff and trade unions. Employee(s) informed staff of decision in writing. 7/1 7/5 7/7 8 Notification of redundancy issued in writing with right of appeal 2/1 2/5 2/9 9 Potential last date for the school to issue notice 31/1 31/5 3/9 1 Effective date of dismissal 3/4 31/8 31/12 NOTE: Statutory notice periods override teacher notice periods for teachers with over 12 years service. Consultation period is working weeks/days Page 9 of 21

10 Appendix 2: Selection criteria teaching staff Sample: teacher redundancy selection primary school Where measures to minimise redundancy fail to provide the revised size and composition of workforce required by the school, selection criteria will be used. The selection criteria will be based on the needs of the school taking into account the School Improvement Plan and will be consulted with trades unions before any selection process commences. The following criteria will be used in a sequential basis. The criteria that should be taken into account are as follows: A The school priorities, as detailed in the School Improvement Plan (including teaching experience and qualifications) If there is no overall selection possible from the above criteria, then a selection using those criteria in (B) will be used B Attendance records (timekeeping and unauthorised absence) Live formal disciplinary records If there is no overall selection possible from the above criteria (A and B), then a selection using those criteria in (C) will be used C Sickness absence (discounting pregnancy related, disability related, specific gender related, certified industrial injury) and any objective performance measures Page 1 of 21

11 Section A Criteria used in section A to be determined as relevant to the school/posts affected Qualifications Available Relevant degree to current teaching (or equivalent) 15 Higher professional qualification 15 Teaching Experience (in the last 3 years) Early Years Foundation KS1 KS2 Specialist Subjects Subject Leader/Aspect leader (specific subject) Available 1 points per year (max 3) 1 points per year (max 3) 1 points per year (max 3) 1 points per year (max 3) 1 points per year (max 3) Advanced Skills Teacher 2 Excellent Teacher 2 Previous teaching in other schools within the last 3 years Leadership/Management (within last 2 years) 15 Available Senior Leadership Team 2 Key Stage Co-ordinator 2 Total for Section A If there is no overall selection possible from the above criteria, then a selection using those criteria in (B) will be used Page 11 of 21

12 Section B Disciplinary No record Live first written warning Live final written warning Timekeeping Total No of unauthorised occasions arrive late (or leave early) over previous 3 years: 1 day 2 days 3 days 4 or more Unauthorised Absence Total number of occasions over previous 3 years: No record 1 occasion 2 occasions 3 or more System 3 5 System System Total for Section B If there is no overall selection possible from the above criteria (A and B), then a selection using those criteria in (C) will be used Page 12 of 21

13 Section C Duration of Sickness Total duration of sickness over the previous 3 years divided by the number of years from which records have been used: 5 days >5 and up to and including 1 days >1 and up to and including 15 days >15 days Frequency of Sickness Total number of occasions of sickness over the previous 3 years divided by the number of years from which records have been used: 2 >2 up to and including 3 occasions >3 up to and including 4 occasions >4 up to and including 5 occasions >5 occasions System System Note: pregnancy related absence and absence related to disability must be excluded Total for Section C In the event of a tie breaker being required Last In First Out (LIFO) may be used. For illustrations of the application of the points based systems please see below. Page 13 of 21

14 Illustration: application of the points assessment scheme The following illustration assumes no selection can be made using selection criteria A, because Employee 1 and Employee 2 score equally under A. It therefore becomes necessary to look at selection criteria B. EMPLOYEE 1 EMPLOYEE 2 CRITERIA POINTS AWARDED CRITERIA POINTS AWARDED Discipline Discipline First written warning in force 5 No disciplinary record 3 Timekeeping Timekeeping Total of 17 occasions over 3 years Total of occasions over 3 years 3 Unauthorised Absence Unauthorised Absence Total of 1 occasion over 3 years 1 Total of occasion over 3 years 3 TOTAL POINTS AWARDED 15 TOTAL POINTS AWARDED 9 In the above illustration Employee 1 (15 points) would be selected for redundancy rather than Employee 2 (9 points) continued on next page Page 14 of 21

15 The following illustration assumes no selection can be made using selection criteria A, because Employee 3 and Employee 4 score equally under A. It therefore becomes necessary to look at selection criteria B. EMPLOYEE 3 EMPLOYEE 4 CRITERIA points awarded CRITERIA points awarded Selection Criteria B Discipline No record 3 Timekeeping Total of 1 occasion over 3 years 3 Unauthorised Absence Total of 1 occasion over 3 years 1 Discipline No record 3 Timekeeping Total of 3 occasions over 3 years 1 Unauthorised Absence Total of occasion over 3 years 3 Total For Selection Criteria B 7 Total For Selection Criteria B 7 As the candidates remain tied after selection from Criteria A and B (above) it therefore becomes necessary to progress to Criteria C (below). Selection Criteria C Duration of Sickness Duration of Sickness Total of 32 days over 3 years Average duration per annum = 32/3 = Total of 11 days over 3 years Average duration per annum = 11/3 = 3.66 days 15 Frequency of Sickness Total of 11 occasions over 3 years Average frequency per annum = 11/3 = 3.6 occasions 1 Frequency of Sickness Total of 2 occasions over 3 years Average frequency per annum = 2/3 =.66 occasions 2 Total For Selection Criteria C 15 Total For Selection Criteria C 35 In the above illustration Employee 3 (15 points) would be selected for redundancy rather than Employee 4 (35 points). In this example there are no pre-recorded objective performance measures which could be taken into account. Page 15 of 21

16 Appendix 3: Selection criteria support staff Sample: redundancy selection criteria Where measures to minimise redundancy outlined in Section 3 fail to provide the revised size and composition of workforce required by the school, selection criteria will be used. The selection criteria will be based on the needs of the school taking into account the School Improvement Plan and will be consulted with trades unions before any selection process commences. The following criteria will be used on a sequential basis. The criteria that should be taken into account are as follows: A The school priorities, as detailed in the School Improvement Plan (including skills and qualifications) If there is no overall selection possible from the above criteria, then a selection using those criteria in (B) will be used B Attendance records (timekeeping and unauthorised absence) Live formal disciplinary records If there is no overall selection possible from the above criteria (A and B), then a selection using those criteria in (C) will be used C Sickness absence (discounting pregnancy related, disability related, specific gender related, certified industrial injury) and any objective performance measures Page 16 of 21

17 Section A Criteria used in A to be determined as relevant to the school/posts affected Qualifications Available GCSE in Mathematics and English Grade C or above (or equivalent) 15 Any other relevant formal qualifications (and points allocated against each) e.g. NNEB, ICT (school to state relevant level) 5 points for each relevant qualification Experience (in the last 3 years) Available Working as Support/Teaching Assistant Working in a school environment (school to give specific examples) SEN experience (at least one year) Knowledge of specific area e.g. early years curriculum 1 points per year (max 3) 1 points per year (max 3) 1 points per year (max 3) 1 points per year (max 3) Gained HTLA status 3 Successfully led intervention programmes (give examples) Leadership/Management (within last 2 years) 5 points per programme (max 3) Available Member of the Leadership Team 2 Total for Section A If there is no overall selection possible from the above criteria, then a selection using those criteria in (B) will be used Page 17 of 21

18 Section B Disciplinary System No record Live first written warning Live final written warning Timekeeping 3 5 System Total number of unauthorised occasions arrive late/leave early over past 3 years: 1 day 2 days 3 days 4 or more Unauthorised Absence System Total number of occasions over past 3 years: No record 1 occasion 2 occasions 3 or more Total for Section B If there is no overall selection possible from the above criteria (A and B), then a selection using those criteria in (C) will be used Page 18 of 21

19 Duration of sickness Section C System Total duration of sickness over the previous 3 years divided by the number of years from which records have been used: 5 days >5 and up to and including 1 days >1 and up to and including 15 days >15 days Frequency of sickness System Total number of occasions of sickness over the previous 3 years divided by the number of years from which records have been used: 2 >2 up to and including 3 occasions >3 up to and including 4 occasions >4 up to and including 5 occasions >5 occasions Note: pregnancy related absence and absence related to disability must be excluded Total for Section C In the event of a tie breaker being required Last In First Out (LIFO) may be used. For illustrations of the application of the points based systems see Appendix 2. Page 19 of 21

20 Appendix 4: Ready reckoner for redundancy payments Service (years) ½ ½ ½ 2 2½ ½ 2 2½ ½ 2 2½ 3 3½ ½ 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 - Age (years) ½ 8 8½ 9 9½ 1 1½ ½ 9 9½ 1 1½ 11 11½ ½ 1 1½ 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 1½ 11½ 12½ 13½ 14½ 15½ 16½ 17½ 18½ 19½ 2½ ½ 5½ 6½ 7½ 8½ 9½ 1½ 11½ 12½ 13½ 14½ 15½ 16½ 17½ 18½ 19½ 2½ 21½ Page 2 of 21

21 Service (years) ½ ½ 6 7½ 8½ 9½ 1½ 11½ 12½ 13½ 14½ 15½ 16½ 17½ 18½ 19½ 2½ 21½ 22½ ½ 6 7½ ½ 6 7½ 9 1½ 11½ 12½ 13½ 14½ 15½ 16½ 17½ 18½ 19½ 2½ 21½ 22½ 23½ ½ 6 7½ 9 1½ Age (years) 5 3 4½ 6 7½ 9 1½ 12 13½ 14½ 15½ 16½ 17½ 18½ 19½ 2½ 21½ 22½ 23½ 24½ ½ 6 7½ 9 1½ 12 13½ ½ 6 7½ 9 1½ 12 13½ 15 16½ 17½ 18½ 19½ 2½ 21½ 22½ 23½ 24½ 25½ ½ 6 7½ 9 1½ 12 13½ 15 16½ ½ 6 7½ 9 1½ 12 13½ 15 16½ 18 19½ 2½ 21½ 22½ 23½ 24½ 25½ 26½ ½ 6 7½ 9 1½ 12 13½ 15 16½ 18 19½ ½ 6 7½ 9 1½ 12 13½ 15 16½ 18 19½ 21 22½ 23½ 24½ 25½ 26½ 27½ ½ 6 7½ 9 1½ 12 13½ 15 16½ 18 19½ 21 22½ ½ 6 7½ 9 1½ 12 13½ 15 16½ 18 19½ 21 22½ 24 25½ 26½ 27½ 28½ ½ 6 7½ 9 1½ 12 13½ 15 16½ 18 19½ 21 22½ 24 25½ ½ 6 7½ 9 1½ 12 13½ 15 16½ 18 19½ 21 22½ 24 25½ 27 28½ 29½ ½ 6 7½ 9 1½ 12 13½ 15 16½ 18 19½ 21 22½ 24 25½ 27 28½ 3 Note The Redundancy Payments (Continuity of Employment in Local Government, etc) (Modification) Order 1999 modifies certain provisions of the Employment Rights Act 1996 concerning redundancy payments in their application to individuals employed by local authorities or certain other bodies, most of which are local or regional. The effect of the modifications is that an individual's service with a succession of employers is treated as continuous for the purpose of determining his or her entitlement to a redundancy payment or the amount of any such payment. Employees must have a minimum of 2 years continuous service to qualify and there is a cap of 2 years' service that can be taken into account in the redundancy payment calculation. Page 21 of 21

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