WORKFORCE ORGANISATIONAL CHANGE POLICY
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1 NHS TAYSIDE WORKFORCE ORGANISATIONAL CHANGE POLICY Author: Organisational Change Group Review Group: Organisational Change Group Review Date: December 2013 Last Update: April 2009 Document No: Issue No: UNCONTROLLED WHEN PRINTED Signed: Executive Lead (Authorised Signatory)
2 Version Number Purpose/Change Author Date 1.0 **Please note earlier versions of this Nicola Owen Nov 2011 policy are available prior to version control being implemented in July Updated Alan Small Nov 2011
3 TABLE OF CONTENTS CONSULTATION AND IMPLEMENTATION ON OPTIONS FOR RESTRUCTURING 1. DEFINITION 2. RE-ORGANISATION a. Tayside Wide Re-organisation b. Department Re-organisation affecting Group of Staff c. Re-organisation affecting 1 or 2 Staff 3. PROCESS FOR MANAGING ORGANISATIONAL CHANGE a. Selection Process b. Key Principles c. Appointment Process 4. PROCEDURES FOR MAXIMISING EMPLOYMENT a. General 5. ALTERNATIVE EMPLOYMENT 6. VOLUNTARY REDUNDANCY 7. PROTECTION OF PAY AND CONDITIONS a. No Detriment to Overall Terms and Conditions b. Grade Protection c. Earning Protection d. Responsibilities of Line Managers, HR and Payroll Staff 8. CALCULATION PERIOD a. Normal Calculation Period b. Rota to Rota Changes 9. CONDITIONS ATTACHED TO PAYMENT AND ELIGIBILITY FOR CONTINUING ENTITLEMENT 10. RESOLVING DIFFERENCES 11. REASONABLE NOTICE PERMANENT CHANGE 12. REASONABLE NOTICE TEMPORARY CHANGE 13. REVIEW PERIOD APPENDIX 1 APPENDIX 2 SPECIMEN LETTER NO DETRIMENT PROTECTION SPECIMEN LETTER NO DETRIMENT PROTECTION
4 CONSULTATION AND IMPLEMENTATION ON OPTIONS FOR RESTRUCTURING 1. DEFINITION Organisational change is defined as a structural or managerial change in the way services within NHS Tayside are organised which may have consequences for directly employed staff such as an impact on employment, pay and conditions of service or roles and responsibilities. For the purposes of this policy staff are considered to be in a redeployment situation as a result of organisational change in the following circumstances: where staff are displaced as a result of their substantive post ceasing to exist or altering substantially; staff whose post remains substantially the same but who undergo some form of change which requires contractual adjustment, e.g. change in duties, hours, location The policy is not, however, designed to cover minor changes, for example in managerial reporting arrangements affecting only one or two individuals. These can be dealt with through appropriate local consultation and partnership arrangements. 2. RE-ORGANISATION a) Tayside Wide Re-organisation When organisational change is being considered on an NHS Tayside basis, a Steering Group (Transition Team) will be established to manage the restructuring process. This will involve generating and appraising options for the restructuring and developing appropriate methods of evaluation. Options may entail varying degrees of service redesign; in such cases staff involved in the current service will be invited to participate, along with key stakeholders, in the development of redesign options. The Steering Group (Transition Team) will include representatives from the NHS Tayside Area Partnership Forum (both management and staff) plus additional agreed members by co-option. There will be an appointed leader for the group who will, in conjunction with the Director for Workforce, ensure that regular reports are provided to the Executive Team. The Steering Group (Transition Team) will agree the options to be consulted upon, the consultation arrangements, the timescale and the evaluation mechanisms to be adopted. (When complex options are involved, there may be a requirement for more formal appraisal of all resource implications, with the assistance of professional advisers as necessary). The group will also take forward the redeployment aspects of the changes. b) Department Re-organisation affecting Group of Staff i.e. More than 2 Employees As above, but local staff side representative(s) and local management and Workforce representative on Steering Group. c) Re-organisation affecting 1 or 2 Staff As above, but local staff side representative(s) and local management and Workforce representative to discuss individual cases.
5 3. PROCESS FOR MANAGING ORGANISATIONAL CHANGE This procedure has been designed to support the introduction of a new staffing structure resulting from organisational/service change. Its main aims are to maximise job security and to promote equity, consistency and fairness in treating staff who have been displaced as a result of such change. Where organisational change results in the displacement of staff, this will be facilitated in accordance with the redeployment framework. (see Redeployment Policy). a. Selection Process To ensure that the right people are appointed to the right job, an agreed systematic approach will be taken in the process of appointing people to posts within the new structure. Equally, in appointing people to these new posts, the process adopted will be fair, just and open to scrutiny. b. Key Principles Matching to roles within the new structure will be on the basis of job function and current grade, that is, the core activities of the new role and existing grade. This process assumes that all staff are considered to meet the performance standards within their current post. Criteria for assessing eligibility for inclusion in a cohort for a new post: 1. The employee s existing post is directly affected by the organisational change. and 2. The new post is no more that one band/grade higher than the employee s existing post. and 3. The employee s experience, skills and competencies are broadly comparable with those required in the new post. and 4. There is a significant degree of commonality between the old and new post in terms of job content (at least 50%). and The job belongs to the same job family. Where only one person wholly carries out the core duties of the post within the new structure or when one person spends more that half their time on these duties, that person will be automatically matched into that post. If the number of people who wholly or predominantly carry out the core activities of the posts within the existing structure equals the number of people required to perform similar roles within the new structure, those individuals will be automatically matched into those roles. Where more than one person wholly or predominantly carries out the core activities of the new roles, but there is a requirement within the new structure for fewer people to perform that role, an agreed selection process will be initiated. The selection process will be by limited internal competition from amongst this group of staff. This will apply to posts at all levels within the organisation.
6 Where no one person currently wholly or predominantly carries out the core activities of a role required within the new structure, the selection process will be by limited internal competition from staff within the service affected by change. Where a new role is created within the revised structure, the selection process will be by limited internal competition from staff within the service affected by change. Where trade union/professional organisation representatives have concerns that an individual(s) has been unreasonably excluded from the limited competition process for a particular post(s), representation may be made on behalf of the staff involved. c. Appointment Process In order to facilitate the appointment process, all posts in the new structure will be profiled with an agreed graded job description and knowledge and skills outline. Posts in the new structure will be filled on a grade-by-grade basis or by salary equivalent where Executive or Senior Managers are involved from the top down. The appointment process will be undertaken on the basis of relating the new job profiles to the job grades/descriptions for existing postholders to establish which jobs are substantially similar. This may include eligibility for inclusion in more than one pool. Where there is any doubt or disagreement, the decision will ultimately rest with the Director for Workforce, and Employee Director (or nominated deputies). This process will also establish whether and to what extent limited competition is required. Selection processes will be discussed with trade union/professional organisation representatives to ensure a fair and equitable approach, given the sensitivities around such exercises. Skills training will be made available where required to staff required to undergo a selection process. Those involved in the selection process will follow an established selection process, using the agreed pre-determined objective criteria for each post. Standard forms will be used throughout the selection process. Unsuccessful candidates will be offered feedback on the selection process and counselling/advice on exploring all alternative options remaining open to them. Following the conclusion of the appointment process, staff unsuccessful in gaining a post on their existing grade, may be considered for other posts within the service affected by the change, provided there are vacant posts. In such circumstances, staff will be subject to the agreed redeployment procedure for these posts. 4. PROCEDURES FOR MAXIMISING EMPLOYMENT a. General NHS Tayside will work in partnership with trade unions and professional organisations to maximise the security of employment of staff during periods of organisational change. The primary focus will be to offer retraining, redeployment, voluntary redundancy and other support to retain staff affected by such change. Where retraining, redeployment, etc. have not been able to secure alternative employment then NHS Tayside will work with staff organisations regarding other actions which can be taken such as:
7 Restrictions on recruiting staff Non-filling of vacancies Voluntary reduction in hours Seeking volunteers for consideration for redundancy / retiral within NHS Tayside s current guidance as detailed in the policy document Redeployment & Reduction Agreements for Managing Staff. Seeking alternative employment. Partial Retirement 5. ALTERNATIVE EMPLOYMENT As part of the organisational change process it may be necessary to redeploy staff or seek alternative employment. Any redeployment will be undertaken in partnership and in accordance with NHS Tayside s Redeployment & Reduction Agreements for Managing Staff. 6. VOLUNTARY REDUNDANCY a. Following engagement with staff organisations NHS Tayside may ask for volunteers for redundancy where it has not been possible to redeploy affected staff. Any volunteers may be eligible for redundancy payments in accordance with the national term and conditions and superannuation circulars in force at the time of the redundancy which are applicable to the employee(s). b. Requests for voluntary redundancy will require the approval of Tayside s NHS Remuneration Committee taking into account a number of factors, e.g. the cost of the redundancy and any associated payment, e.g. early payment of pension, cost of retaining the member of staff, organisational efficiency including the balance of skills and experience required to ensure service delivery. c. Requests for voluntary redundancy must be endorsed by both the Director for Workforce and the Director of Finance. Final authority for approval of such requests rests with the NHS Tayside Remuneration Committee. d. Voluntary redundancy applications will normally be processed within 3 months of receipt of the request. Where this timescale cannot be met then the member of staff will be notified in writing 7. PROTECTION OF PAY AND CONDITIONS a. No Detriment to Overall Terms and Conditions The basic intention is to protect the normal earnings which could be reasonably expected by an employee. b. Grade Protection Where organisational change results in an employee moving to a post with a lower band / grade maximum, and where shift rosters in the old and new posts are broadly similar, employees should retain their substantive band / grade on a no detriment. c. Earning Protection Such earnings are deemed to comprise: - basic pay;
8 cash sum allowances; unsocial/out of hours payments; any other regular additional payments. Overtime a commitment by an individual to work where an employee has a formal agreement contained within their contract of employment to overtime as part of their normal working pattern and / or a commitment by an employee to work whereby the individual employee enters into agreement to undertake overtime at a given time or frequency from which point they can only leave on arrangement by giving formal notice in writing of a minimum of 4 weeks. d. Responsibilities of Line Managers, Workforce and Payroll staff. It is necessary to specify, in explicit terms, prior to an organisational change taking place, which earnings are being included and their value in monetary terms. It is the responsibility of the line manager and Workforce representative to Identify at the earliest opportunity instances where organisational change will be likely to result in an employee suffering a detriment to overall terms and conditions of employment Ensure that the Payroll Department are asked to provide the necessary financial details based on the calculation periods specified in paragraph 8 below. This means than an employee is protected at a level and that level is known to them in advance of a change occurring. Specimen letters are attached as Appendices 1 and 2. Where actual earnings for work carried out as part of the standard working week during a pay period fall short of the protected level, the shortfall is paid as protection. Where actual earnings for work carried out as part of the standard working week during a pay period exceed the protected level, no protection payment is payable in respect of that period. Where overtime has been excluded from the determination of the protected level, any overtime subsequently worked should not be offset against protected earnings. Pay awards as determined from time to time will be applied to the protected level. Where, at the time of the organisational change, the employee has not reached their pay scale maximum, future increments should not be offset against protected earnings. 8. CALCULATION PERIOD a. Normal Calculation Period The calculation period will normally be 4 months (monthly paid staff), or 17 weeks (weekly paid staff), unless there are exceptional individual or organisational circumstances which will be the subject of agreement between management and Trades Union representatives. Such circumstances might include where a service had significant seasonal fluctuations in workload, where an employee has had significant long-term sickness absence, or where an employee has had a period of maternity leave. b. Rota to Rota Changes. In instances where organisational change involves a group of employees or an individual employee moving from one shift roster to another, the Payroll Department will calculate earnings in the old and new rotas. Where average earnings in the new rota are less than previous earnings no detriment protection will apply. Public Holiday enhancements in this situation require to be protected on an individual basis. The Payroll Department must be consulted where changes in working arrangements are being considered which will result in a reduction in the number of public holidays worked in a year.
9 9. CONDITIONS ATTACHED TO PAYMENT AND ELIGIBILITY FOR CONTINUING ENTITLEMENT As a condition of receiving no detriment protection, individual employees must agree to accept suitable alternative posts on an appropriate grade/terms and conditions of service and any agreed changes in duties, responsibilities and/or location. Where individual employees are deemed to be unreasonably withholding such agreement, the employer will be entitled to withdraw the no detriment protection. 10. RESOLVING DIFFERENCES Where differences arise as a result of application of this policy, it is expected that attempts will be made to resolve such issues locally with Workforce staff and Staff Representative input and involvement. If an employee remains aggrieved following this initial stage, the procedure regarding individual grievances should be followed. 11. REASONABLE NOTICE - PERMANENT CHANGE Where an opportunity arises for an individual to permanently work up to the level of protection sufficient notice must be provided which in most instances would be a minimum of one month. However, consideration will be taken of individual circumstances in determining a reasonable period of notice as agreed by both the manager and the individual. Where an offer is deemed reasonable and is subsequently refused this will result in protection being withdrawn. In determining what constitutes an unreasonable refusal managers should consider the reasons provided by the individual and thereafter notify the individual in writing of the outcome which will be either:- a. Confirmation that the reasons provided have been deemed reasonable and on this occasion protection shall not be affected; or b. Notify the individual that the refusal is considered unreasonable and will result in the protection being withdrawn. 12. REASONABLE NOTICE - TEMPORARY CHANGE In determining what constitutes an unreasonable refusal, managers should consider the reasons presented by the individual and thereafter notify the individual in writing of the outcome which will be either: a. confirmation that the reasons provided have been deemed reasonable and on this occasion protection will not be affected; or b confirmation that the refusal is considered unreasonable and will result in protection being withdrawn (temporarily or permanently).
10 13. REVIEW PERIOD This policy will be subject to review and to any further clarification and/or instruction received from the Scottish Government Workforce Directorate.
11 SPECIMEN LETTER 1 APPENDIX 1 This letter only applies to employees affected by organisational change, not secondments for other reasons. Dear xxxxx, (Reason for change eg service redesign, management restructure etc) No detriment protection As you are aware as a consequence of the closure of ward 5, Ninewells Hospital and the subsequent redeployment process, it has not been possible, at present, to match you to a post which allows you to work up to your previous terms and conditions of service. As discussed with you, I write to confirm details of your no detriment protection. Your protection has been calculated in accordance with the NHS Tayside Policy on Protection of Pay and Conditions. In your circumstances, your average earnings have been calculated over a four-month period (if you are paid monthly) or a seventeen-week period (if you are paid weekly) and you will be protected at this average level under the terms of the policy. This payment includes protection for contractual overtime, on-call payment, call out payment, grade, night duty hours, weekend hours. The calculations provided by Pay Office are attached. I require to draw to your attention the conditions of accepting no detriment protection are contained in section 9 12 of the Organisational Change Policy. By accepting no detriment protection you are agreeing to accept suitable alternative posts on an appropriate grade/terms and conditions of service and any agreed changes in duties, responsibilities and/or locations. Where an opportunity arises for you to permanently work up to the level of protection sufficient notice will be provided which in most instances would a minimum of one month. Where a temporary change is available reasonable notice of the change will be given. Where a reasonable offer is made to you and you refuse to accept this offer, this will result in no detriment protection being withdrawn either on a permanent or temporary basis. Should you have any queries regarding the foregoing please discuss this with your immediate manager who will seek Workforce/Pay Office guidance as necessary. Please sign the section on the copy attached to confirm understanding and acceptance of the terms attached to this protection. Yours sincerely, Workforce Manager. I understand the requirements of Sections 9-12 of the Organisational Change Policy as further described above. Name. Date Name of individual, pay number, Department
12 SPECIMEN LETTER 2 APPENDIX 2 This letter only applies to employees affected by organisational change, not secondments for other reasons. Dear xxxxx, (Reason for change eg service redesign, management restructure etc) No detriment protection As you are aware as a consequence of the change in shift pattern/working arrangements in your area your current earnings will be affected. As discussed with you, I now write to confirm details of your no detriment protection. Your protection has been calculated in accordance with the NHS Tayside Policy on Protection of Pay and Conditions. In your circumstances, this protection has been calculated on a rota to rota basis, as per paragraph 8b of the Policy. This means that Pay Office have calculated average earnings in the old and new rotas and compared the figures. As average earnings in the new working rota are less than previous average earnings, no detriment protection applies. The calculations provided by Pay Office are attached. This payment includes protection for contractual overtime, on-call payment, call out payment, grade, night duty hours, weekend hours. I require to draw to your attention the conditions of accepting no detriment protection that are contained in section 9 12 of the Organisational Change Policy. By accepting no detriment protection you are agreeing to accept suitable alternative posts on an appropriate grade/terms and conditions of service and any agreed changes in duties, responsibilities and/or locations. Where an opportunity arises for you to permanently work up to the level of protection sufficient notice will be provided which in most instances would a minimum of one month. Where a temporary change is available reasonable notice of the change will be given. Where a reasonable offer is made to you and you refuse to accept this offer, this will result in no detriment protection being withdrawn either on a permanent or temporary basis. Should you have any queries regarding the foregoing please discuss this with your immediate manager who will seek Workforce/Pay Office guidance as necessary. Please sign the section on the copy attached to confirm understanding and acceptance of the terms attached to this protection. Yours sincerely, Workforce Manager I understand the requirements of Sections 9-12 of the Organisational Change Policy as further described above. Name. Date Name of individual, pay number, Department
13 Rapid Impact Checklist (RIC) : Summary Sheet Each policy must include a completed and signed template of assessment 1. Positive Impacts (Note the groups affected) Structured approach to dealing with employment issues arising from organisational change. Protection of earnings Protection of continuity of employment 2. Negative Impacts (Note the groups affected) No negative impact identified 3. Additional Information and Evidence Required Review of existing policy 4. Recommendations N/A 5. From the outcome of the RIC, have negative impacts been identified for race or other equality groups? Has a full EQIA process been recommended? If not, why not? No negative impact identified. Full EQIA not required. Manager s signature: John Young Date: 28 th April 2009 Alison Johnston
14 1. Rapid Impact Checklist (RIC) Each policy must include a completed and signed template of assessment Which groups of the population do you think will be affected by this proposal? minority ethnic people (incl. gypsy/travellers, refugees & asylum seekers) women and men people in religious/faith groups disabled people older people, children and young people lesbian, gay, bisexual and transgender people N.B. The word proposal is used below as shorthand for any policy, procedure, strategy or proposal that might be assessed. What impact will the proposal have on lifestyles? For example, will the changes affect: Diet and nutrition? Exercise and physical activity? Substance use: tobacco, alcohol or drugs? Risk taking behaviour? Education and learning, or skills? Will the proposal have any impact on the social environment? Things that might be affected include Social status Employment (paid or unpaid) Social/family support Stress Income Will the proposal have any impact on Discrimination? Equality of opportunity? Relations between groups? Will the proposal have an impact on the physical environment? For example, will there be impacts on: Living conditions? Working conditions? Accidental injuries or public safety? Transmission of infectious disease? Will the proposal affect access to and experience of services? For example, Health care Transport Social services Housing services Education people of low income Other Groups: people with mental health problems homeless people people involved in criminal justice system staff What positive and negative impacts do you think there may be? Which groups will be affected by these impacts? The policy will have a neutral effect on lifestyle By providing a structured and detailed approach to the Management of Organisational Change the policy provides reassurance about the fair treatment of all employees affected including protection arrangements for payment and continuity of employment The policy will apply equally to all members of staff in a non discriminatory fashion. The policy provides for protection of pay and continuity of employment and will not adversely affect living conditions. Working conditions will benefit from the structured approach to employment opportunities arising from change. No direct impact.
15 NHS TAYSIDE - POLICY/STRATEGY APPROVAL CHECKLIST This checklist must be completed and forwarded with policy to the appropriate forum/committee for approval. POLICY/STRATEGY AREA: (See Intranet Framework) WORKFORCE POLICY/STRATEGY TITLE: ORGANISATIONAL CHANGE POLICY LEAD OFFICER: ALAN SMALL Why has this policy/strategy been developed? Has the policy/strategy been developed in accordance with or related to legislation? Please give details of applicable legislation. Has a risk control plan been developed? Who is the owner of the risk? Who has been involved/consulted in the development of the policy/strategy? Has the policy/strategy been assessed for Equality and Diversity in relation to:- Race/Ethnicity Gender Age Religion/Faith Disability Sexual Orientation Please indicate Yes/No for the following: To ensure consistent approach to organisational change N/A N/A HR Forum, APF, Managers & Staff Side Has the policy/strategy been assessed For Equality and Diversity not to disadvantage the following groups:- Minority Ethnic Communities (includes Gypsy/Travellers, Refugees & Asylum Seekers) Women and Men Religious & Faith Groups Disabled People Children and Young People Lesbian, Gay, Bisexual & Transgender Community Please indicate Yes/No for the following: Does the policy/strategy contain evidence of the Equality & Diversity Impact Assessment Process? Is there an implementation plan? Which officers are responsible for implementation? When will the policy/strategy take effect? Who must comply with the policy/strategy? How will they be informed of their responsibilities? Is any training required? If yes, has any been arranged? Are there any cost implications? If yes, please detail costs and note source of funding Who is responsible for auditing the implementation of the policy/strategy? What is the audit interval? Who will receive the audit reports? When will the policy/strategy be reviewed and by whom? (please give designation) N/A All Managers Immediately approved NHS Tayside Staff Policy will be distributed/staffnet NO N/A NO N/A APF 3 years Director for Workforce/APF Organisational Change Group December 2012 Name: Alan Small Date: 28 th April 2009
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