1 AGENDA ITEM: 5(c) Management of Change Policy and Procedure Review Date: September 2006 Reviewed by: Head of Employment Services
2 1. Introduction & Policy Statement The Trust aims to provide job security for all staff, but it recognises the need for an agreed policy and procedure which outlines the action to be taken in the event of it being necessary to consider redundancies. This document sets out the measures to be taken when organisational change is likely to result in a reduction in the numbers of staff employed. It also outlines the arrangements for redundancy payments in cases where it has not proved possible to offer suitable alternative employment. This policy should be read in conjunction with the policy on Organisational Change Protection of Remuneration. However, this policy will not apply where staff are redeployed to posts external to the Trust. Nothing contained within this agreement can override current employment legislation. 2. Definition of Redundancy Redundancy is defined in Section 139 of the Employment Rights Act 1996 as follows: For the purposes of this Act an employee who is dismissed shall be taken to be dismissed by reason of redundancy if the dismissal is wholly or mainly attributable to: 3. Principles the fact that his employer has ceased or intends to cease to carry on the business for the purposes of which the employee was employed by him, or has ceased or intends to cease to carry on that business in the place where the employee was so employed, or the fact that the requirements of that business for employees to carry out work of a particular kind, or for employees to carry out work of a particular kind in the place where the employee was employed by the employer, have ceased or diminished or are expected to cease or diminish. 3.1 The Trust s policy is to ensure fair and consistent treatment of employees and to provide detailed information as early as possible, offer guidance and support and minimise any enforced termination of employment. 3.2 The Trust will examine in consultation with staff and their representatives, alternatives that may avoid redundancies, for example, redeployment, re-training where appropriate, restrictions on recruitment and filling vacancies with internal candidates, reduction in overtime.
3 3.3 The Trust will endeavour to ensure effective workforce planning systems are in place, linked to business planning processes to determine future human resources requirements, which will help to avoid the necessity for redundancies wherever possible. 3.4 No decisions on compulsory redundancies will be made without consulting with staff representatives, using established consultation and negotiation processes, appropriate to the nature of the situation. Where 20 or more employees are to be made redundant, consultation will be undertaken with a view to reaching agreement where possible. It will include, as far as is practicable, discussion as to ways of: avoiding dismissals reducing the numbers of employees to be dismissed mitigating the consequences of dismissals. The Trust will give as much warning as practicable or as legally required (90 days before the first dismissal where 100 or more employees at one establishment are to be made redundant within 90 days of each other and 30 days when 20 or more are to be made redundant) to: Recognised trade unions Employees Department of Trade & Industry 3.5 Any employee served with notice of dismissal by reason of redundancy will be given reasonable time off with pay to seek alternative employment or training, if appropriate. 4. Procedure for Handling Redundancies 4.1 Where it is deemed necessary to reduce the establishment, so that smaller numbers of staff on certain pay bands are required, so far as possible the reduction will be achieved by ring fencing vacancies into which displaced staff can be redeployed. Protection of remuneration may be appropriate in some cases. 4.2 The decision to make redundancies will be made only by the Trust Board or its Executive Directors. When, it is decided that redundancies in certain work areas are inevitable, selection for redundancy will be made on the basis of fair and reasonable criteria. The examples listed overleaf, which are neither exclusive or in any order of priority, but subject to the over-riding consideration of the efficiency of the service, may be taken into account in deciding which individuals in the at risk area are to be dismissed:
4 Attendance record. Length of service. Performance record. Retirement age, including eligibility for premature retirement on grounds of redundancy. Skills and experience. Voluntary redundancy. Managers should ensure that the criteria used can be objectively justified by the provision of evidence, having due regard to equality legislation. The at risk area will be specified by management, having consulted with staff representatives, for example, it may be defined by work function, pay band, department, establishment, geographical or organisational area. Consultation documents, outlining the rationale for organisational change, will state that staff affected by the change are invited to make representations against the selection either directly or through their trade union, which will be carefully and sympathetically considered. Estimates for redundancy payments and premature retirement on grounds of redundancy (where appropriate) will be sought from Payroll Services and given to staff in the at risk group. 4.3 The line manager in conjunction with a representative from the Human Resources Department will conduct individual interviews with at risk staff together with their union representative or a workplace colleague. The purpose of the interviews will be to determine their views on voluntary redundancy or premature retirement (as appropriate), preferences concerning redeployment and any constraints, for example, travelling difficulties, domestic commitments etc. Employees will be advised of the assistance available to help them find alternative work, in the event of them remaining on the finalised list of at risk staff. This will be as follows: With the employee s consent his/her Curriculum Vitae will be circulated to neighbouring Trusts. Alternatively, employees may prefer to access a web site for NHS jobs ( The Training and Development Department will provide guidance in preparing a Curriculum Vitae should employees require this assistance.
5 A freeze will be imposed in respect of external advertising of relevant posts, which may be suitable for redeployment of the at risk group. Access to the Trust s vacancy bulletin via the Intranet or receipt of a hard copy for those who do not have immediate access to the Intranet. Guaranteed interview for posts applied for within the Trust, where the employee matches the person specification. The Director of Human Resources will intervene where there is reluctance on the part of line management to accept an employee for redeployment whose score at interview was deemed to be on or above the line. 4.4 A record will be maintained of any posts offered to at risk staff, who will be informed that if they refuse an offer of suitable alternative employment without reasonable grounds or refuse to apply for alternative posts where there is a need for competition amongst other at risk staff, they will not be eligible for a redundancy payment. If only one employee is at risk and he/she refuses an offer of reasonable alternative employment, he/she will not be eligible for a redundancy payment. If staff are offered employment by another NHS employer with an effective date of appointment which is prior to their services ceasing to be required, the Trust will endeavour to release them. An employee who accepts alternative employment within the Trust which attracts a lower pay band will receive protection of remuneration in accordance with his/her age and length of NHS service (see policy entitled Organisational Change Protection of Remuneration ). Redeployed staff will be entitled to a trial period for the first four weeks under the new contract. The date of the end of the trial period will be specified in writing prior to the commencement of the new contract. The four week trial period is a strict time limit and can be extended only by agreement for the purpose of re-training the employee. Such an agreement must be in writing and specify a new date when the trial period will end. If the employee or the manager subsequently terminates the contract for a reason connected with the nature of the new employment during the trial period, the reason for termination shall be deemed to be redundancy. Where the employee unreasonably terminates the contract during the trial period, he/she will not be entitled to a redundancy payment, despite having the requisite period of service.
6 4.5 Employees will be made compulsorily redundant if it proves to be impossible to redeploy them. However, prior to any decision being made to dismiss by reason of redundancy, a meeting will be arranged with each affected member of staff, who will have the right to be accompanied by a full-time officer or local representative of a recognised trade union, or a work colleague. The outcome of the meeting will be confirmed in writing. Employees who are made compulsorily redundant will have the right of appeal against this decision to a Trust appeal panel in accordance with the provisions of the Trust s Disciplinary Rules and Procedure. 5. Redundancy Payments Section 16 of the Agenda for Change: NHS Terms and Conditions of Service Handbook sets out the arrangements for redundancy payments for staff within the scope of the agreement. Staff outside the scope of the agreement will be notified individually of their statutory entitlements as appropriate. Payment may be made if no suitable alternative employment can be found in the NHS. A payment will be due if the employee has not been placed before his/her services are terminated or, if he/she has been placed but the new appointment cannot be taken up within four weeks of termination of employment. It is the Trust s responsibility to assess and make any redundancy payment. Employees will be given advance notice so that a claim can be submitted in ample time. A claim must be submitted within six months of the date of termination of employment. An application form can be found under Appendix A. Employees will not be entitled to a redundancy payment where there is: an offer of a renewal of contract (with the substitution of the new employer for the previous one) where the employment is transferred to another public service employer who is not an NHS employer. a transfer under the Transfer of Undertakings (Protection of Employment) Regulations 1981 (as amended) and an employee is offered a renewal of contract (with the substitution of the transferee for the transferor). 6. Premature Retirement on Grounds of Redundancy Employees who have been declared redundant by the Trust who are over the age of 50 and have five years reckonable service in the NHS Pension Scheme, are entitled to early retirement benefits (subject to the approval by the Director of Human Resources). An application form can be found under Appendix B.
7 Enhancement of service under these circumstances is outlined under paragraphs and of Section 16 of the Agenda for Change: NHS Terms and Conditions Handbook and where appropriate HSG(95)25. Agreed by the Joint Staff Council: (24 January 2006) Approved by the Trust Board: (insert date)
8 Part A Initial Application APPENDIX A ESSEX RIVERS HEALTHCARE NHS TRUST CLAIM FOR REDUNDANCY PAYMENT (To be completed when it is known that a claim for redundancy payment may be made) Name in full Date of Birth. Address Present Employment Job Title Pay Band.. Base. Hours worked per week Previous Employment in the NHS Grade Where Employed Employer Hours worked per week Dates From / To Reason for Leaving I have been notified that my post will be redundant on.. And I hereby claim a redundancy payment in accordance with Section 16 of the Agenda for Change: NHS Terms and Conditions Handbook. I understand that a redundancy payment can only be made to me on condition that I have not obtained, or been offered, or refused to apply for, other suitable employment in the NHS. Signed Date
9 Part B Certification (To be completed before a redundancy payment is made) I hereby certify that I have not obtained other employment in the NHS. I hereby certify that I have obtained other employment in the NHS, but I claim that this is not suitable alternative employment to my previous employment. Please specify details of the new employment.. I have not been offered or refused to apply for other employment in the NHS. I have completed Part C overleaf, which outlines the particulars of all alternative posts in the NHS that have been offered to me or been brought to my notice since I was informed that my post would become redundant. I have also provided my reasons for refusing to apply for such employment. Please place a in either box or and a in either box or above as appropriate. I declare that the statements and information given by me on this form are correct to the best of my knowledge. If in completing the form I have made a false statement or have omitted to include any relevant information, whether knowingly or otherwise, I undertake to refund any redundancy payment which I have received. I understand that such a refund will not be required because of a genuine error which does not affect my entitlement to, or the amount of such a redundancy payment. If I should find alternative NHS employment commencing without a break not exceeding four weeks from the date of my termination, I agree to refund in full, any redundancy payment which I have received. Signed Date
10 Part C Statement of Alternative NHS Employment Offered or Brought to my Notice (To be completed when a redundancy payment is claimed) Employer & Base Pay Band The post was brought to my notice Submitted an application Y N The post was offered & was accepted Y N Reasons for not accepting or not applying for the post
11 APPENDIX B ESSEX RIVERS HEALTHCARE NHS TRUST APPLICATION FOR PREMATURE RETIREMENT ON GROUNDS OF REDUNDANCY (Part A should be completed by the applicant and Part B by the employer) Part A Name in full Date of Birth. Division... Department / Ward.. Base.. Job Title... Pay Band.. Point on the scale Are you a member of the SPECIAL CLASSES for NHS Pension purposes (Female nurse, Midwife, Physiotherapist)? Yes No Date on joining the NHS Date of commencement of reckonable pensionable service, including all service transferred into the NHS Scheme What is your contractual normal retirement age?... Proposed date of retirement. I have not obtained or been offered, or refused to apply for other reasonable alternative employment in the NHS. I hereby apply to take premature retirement under the terms of the agreement on premature payment of pension and compensation benefits. Signed Date
12 Part B Details in the change in structure including a copy of the present and proposed organisational structure. Reason for change Details of the search for alternative employment that has been made for this employee Specific post / person whose redundancy will be avoided by this premature retirement (please show how this relates to the proposed retirement) This application is approved. It meets the criteria for premature retirement as described in HSG (95) 25. Signed (Director of Human Resources). Date