Key Information. Purpose.2 Statement 2 Impact of the Student 3 Responsibility 4 Legal Requirements 5 Definition of Redundancy 6 Eligibility 7 Measures for Minimising or Avoiding Compulsory Redundancy 8 Notification 9 Consultation 0 Selection of Redundancy Redundancy as a Result of Restructuring 2 Time Off to Attend Interview 3 Appeal 4 Calculation of Payments 5 Suitable Alternative Employment 6 Notice Period 7 Completion of Impact Assessment Contents Page 2 2 2 3 4 4 4 5 5 5 6 6 Appendices 7 Appendix A Checklist Completing the HR Form 7 Advance Notification of Redundancies Form 8 Appendix B Redundancy Selection Criteria 0 Redundancy Selection Form Appendix C Ready Reckoner 2 Appendix D Standard Letter 3 This document is available in large print or in an alternative format that meets your needs. Please contact the HR Manager. May 204 Ref:POL005
Key Information. Purpose It is North Lindsey College s intention to develop and maximise its activities by careful forward planning to ensure wherever possible a stable work environment and stability of employment. However, it is recognised that circumstances may arise which result in the College needing to reduce staffing levels brought about by medium to long term financial constraints affecting operational needs, or other organisational issues, and developments..2 Statement The Redundancy is intended to ensure that all redundancy dismissals are made: With due regard to legislative requirements In the best interests of ensuring the College s viability and quality of educational provision In a fair and transparent process To minimise any distress or hardship to the staff involved. 2 Impact of the Student This policy ensures that the college mitigates the loss of qualified experienced staff in a redundancy situation. The policy ensures that the finance and implications of such activities are carefully considered to ensure monies are spent on the student learning experience wherever possible. 3 Responsibilities The Principal has overall responsibility for the process. The Deputy Principal is responsible for ensuring that the procedure is followed. All administration will be carried out by the Personnel Department. 4 Legal Requirements The College recognises its responsibilities under: Employment Rights Act 996 Trade Union and Labour Relations (Consolidation) Act 992. 5 Definition of Redundancy A redundancy situation occurs where an employer has ceased or intends to cease to carry on the business for the purposes of which the employee was employed, or has ceased or intends to cease to carry on that business in the place where the employee was so employed or the requirements of that business for employees to carry our work of a particular kind or for the employees to carry out work of a particular kind in the place where they were so employed, have ceased, diminished or are expected to cease or diminish. May 204 Page - Ref:POL005
Key Information 6 Eligibility Only staff employed under a North Lindsey College contract will be eligible for a redundancy payment. Staff need to have been employed for two years to qualify for a redundancy payment. 7 Measures for Minimising or Avoiding Compulsory Redundancy The College will endeavour wherever possible to avoid compulsory redundancies and will give full consideration to the following options: Natural wastage Reviewing recruitment of permanent staff (eg introduce moratorium or freezing recruitment) Reducing the use of agency staff and short term temporary staff where appropriate Seeking volunteers for voluntary redundancy, including where practicabl e, from areas of work where staff possess transferable experience and skills to enable possible redeployment opportunities The Principal shall be entitled to consider the enhancement of a payment offered to staff as part of any voluntary redundancy arrangement. Any such enhancement will be on a case by case basis, and will be determined by the Principal in his absolute discretion, taking into account the number of redundancies and volunteers, and the financial, management and aca demic priorities of the College Redeployment/Retraining original staff Reducing/Elimination overtime working Considering volunteers for part-time working/job share Look at all aspects to make alternative savings Any alternative suggestions from Trade Unions and employees involved Seeking alternative funding for projects/courses 8 Notification Under TULR (C) A 992 S93 there is an obligation to notify the Secretary of State of proposed redundancies involving 20 or more employees. An employer proposing to dismiss as redundant 00 or more employees within a 90 day period should notify the Secretary of State in writing at least 45 days before the first dismissal. An employer proposing to dismiss as redundant 20 or more (but less than 00) employees within a 90 day period should notify the Secretary of State of the proposal in writing at least 30 days before the first dismissal. (See Appendix A for notification document). A copy of the notice to the Secretary of State shall be given to the recognised Trade Union (whichever appropriate) to comply with TULR (C) A 992 S88. The notice to Secretary of State will be by the required form HR (Appendix A). The notice to recognised Trade Unions will be in accordance with section 8 TULR (C) A with a copy of the form HR. May 204 Page - 2 Ref:POL005
Key Information 9 Consultation Under TULR (C) A 992 SS88 92, where the College proposes to dismiss as redundant, 20 or more employees, the College will consult with the recognised Trade Union/employee representatives as appropriate. The consultation will begin in good time according to the notification periods (section 7). The College acknowledges the benefit of engaging in consultation with recognised Trade Unions and staff as early as possible and will endeavour to do so where appropriate as soon as they become aware of a possible redundancy situation. The consultation will include ways of: Avoiding the dismissals Reducing the numbers to be dismissed Mitigating the consequences of the dismissals. The consultation will be undertaken with a view to reaching an agreemen t. The College will disclose in writing to the appropriate representatives/trade Unions: The reasons for the proposals The numbers and descriptions of the employees it is proposed to dismiss as redundant The total numbers of employees of each description employed by the College The proposed method of selection, including where appropriate the selection criteria and proposed pools for selection The proposed method of carrying out the dismissals including the period over which the dismissals will take place The proposed method of calculating the amount of any redundancy payments to be paid, to employees who may be dismissed. This information will be given in good time at the outset of the consultation process. Once the above information has been disclosed, a meeting will be arranged to discuss the measures to minimise or mitigate the effects of any redundancies where possible ( section 5). Further meetings will be arranged as appropriate. The Principal will give due consideration to any suggestions made by the representatives before a decision is made and respond to written suggestions in writing. Trade Union Representatives or other representatives will be allowed access to the staff affected according to the restrictions and requirements of the business. May 204 Page - 3 Ref:POL005
Key Information 0 Selection for Redundancy. Staff provisionally selected for Redundancy will be informed in writing and will be invited to a minimum of one face to face consultation meeting with their line manager (they can be accompanied to these meetings by a fellow colleague or trade union representative). The reasons for the redundancies and the selection methods will be explained to them, including the criteria to use on the particular situation and the scores they achieved. 2. Selection Criteria will be determined for each particular situation individually to protect the best interest of the College. The criteria will always be fair and transparent and be as objective as possible. (Appendix B Criteria proforma). Redundancy as a Result of Restructuring Following a restructuring process, every effort will be made to avoid redundancy by: retraining with a view to redeployment filling current vacancies ring fencing new vacancies for affected staff retirement consideration of other work patterns where appropriate consideration of any alternative suggestions from staff representatives/recognised Trade Unions. The new posts identified and budgeted for as part of a restructure will initially be ring fenced. Staff affected by the restructure will have the opportunity to apply for vacancies for which they are qualified and meet the criteria. The interviews will take place following the usual process. Successful applicants will have either an amended contract and continuous service clause o r the same contract (as appropriate). Unsuccessful applicants will be invited to a one to one meeting with the Deputy Principal (or other appropriate person) to discuss other alternatives and/or their redundancy package. 2 Time Off to Attend Interview. The College will consider all staff under notice of redundancy for all vacancies where they fulfil the job criteria. 2. Individuals under notice of redundancy will be allowed appropriate time off to attend interview for alternate employment. (Using Authorised Leave Form). May 204 Page - 4 Ref:POL005
Key Information 3 Appeal Any employee who is selected for redundancy has the right to appeal against the decision by writing to the Principal within 4 working days of the decision being received. If the Principal has been involved in the decision, the appeal will be made up from a panel from the Corporation drawn together for this purpose by the Clerk to the Corporation. The appeal will follow the process laid down in the Appeals Procedure. 4 Calculation of Payments All redundancy payments will be calculated in accordance with the Employment Rights Act 996 S 62. 2 The amount of the payment is calculated using multipliers of Age and Length of Service (See Appendix C for speed reference chart). 3 The period of continuous employment for which payment is made, is ca lculated from the first day of employment to the last day of the notice period. There should be no breaks in employment. 4 The maximum number of years worked which can be taken into account for these purposes is 20. 5 Age 7-22 equates to ½ weeks pay Age over 22 Age over 4 equates to weeks pay equates to ½ weeks pay. 6 One weeks pay is calculated using the government stipulated figure Statutory Redundancy Pay (SRP) which changes each year on st February. This figure is used for weekly gross earnings over (SRP). SRP would be the maximum weekly paid in redundancy. For employees earning less than SRP gross per week, their own basic gross weekly earning figure will be used. 7 Therefore the maximum redundancy payable could be 20 years x ½ x limit (SRP) A written statement of these figures for each individual will be given ( see Appendix D for template letter). 5 Suitable Alternative Employment The College reserves the right to offer employees suitable alternative employment should a suitable vacancy be available. 2 The offer of a suitable alternative position should be made before the end of the original notice period. The post could start before the end of the notice period or within 4 weeks of the end of the notice period. May 204 Page - 5 Ref:POL005
Key Information 3 A trial period of 4 weeks will be allowed to ensure that the arrangement is satisfactory to both the College and the employee. 4 If the arrangement is not satisfactory, it will terminate and the employee will revert to their original notice date for termination and be entitled to the redundancy payment. 5 Written details of the trial period and post will be given to the employee. 6 Notice Period A notice period equal to that stipulated in the employee s contract of employment will apply. The employee will be expected to work out their notice period as stipulated in their letter of notification of redundancy. If for unforeseen circumstances the notice period given is less than the contract requires, payment will be made in lieu of the balance of the notice entitlement. 7 Completion of an Impact Assessment The College will complete an impact assessment for each redundancy situation to assess the impact in accordance with the Equality & Diversity policy process. May 204 Page - 6 Ref:POL005
Appendix A CHECKLIST: Completing the HR Form This note outlines the sections that form the basis of the HR form. Make sure that these sections are completed (along with the rest of the form) as fully as possible in order for the case to be processed. Section 3: Establishment where redundancies proposed Give the full address of the location where proposed redundancies are due to occur. If the losses are expected within a number of locations, you must complete an HR form for each site where redundancies are likely to exceed twenty.* Section 5: Staff numbers/redundancies at this establishment State the number of people currently employed at each location, plus the number of possible redundancies. Bear in mind that if it is not possible to cite figures, an estimate or worst case scenario is acceptable. Section 7: Timing of redundancies It is important that the date of the first proposed redundancies is given. Again, if a precise date is not possible, an estimate or worst case scenario is acceptable. The DTI understands that certain circumstances may make filling in these sections difficult. It would be helpful if you could provide any supplementary information relating to the case, highlighting those factors which prevent completion of any sections. If you require clarification on anything, please contact us by telephone on 02 678 830 or 02 678 872. The completed HR form can be returned to this office using the fax number 02 455 053. If returning the HR by fax, please do not send the original by post. We will accept the facsimile as the original document. Notification of redundancies per site is required, regardless of whether the sites are managed centrally or operate on a quasi-independent basis. May 204 Page - 7 Ref:POL005
www.insolvency.gov.uk Note for employer Advance notification of redundancies Trade Union and labour Relations (Consolidation) Act 992, Part IV, Chapter" There is a statutory requirement for the Government to assist employees facing redundancy. In order to do this, advance notification of potential redundancies is required from you. Failure to comply with the statutory notification requirements below without good cause may result in prosecution and a fine, on summary conviction, of up to 5000, for the company and/or officer of the company. The Redundancy Payments Service (RPS), acting on behalf of the Secretary of State for Business, Innovation and Skills, collects the information and distributes it to the appropriate Government Departments and Agencies who offer job brokering services and/or training services so that they can discharge their obligation to your employees. The information about your company is commercially confidential and may be used only for the purpose of assisting those facing redundancy. The other Government Departments and Agencies are bound by the same confidentiality terms as the RPS. You will be contacted directly by your local Jobcentre Plus and other service providers in your local area with offers of assistance during this notification/consultation period. Data Protection Act 998 We will store the information you give us in a computer system, which will help us deal with it more efficiently. We may use the information for statistical purposes How to complete this form Your legal obligations ) Use a separate form for each establishment where 20 or more redundancies may occur within a 90-day period. 2) Use black ink and write your answers in CAPITALS, as this will make it easier for us to read. 3) Where tick boxes appear, please tick those that apply. 4) If there is not enough space for your answers, please use a separate sheet of paper and attach it to this form. 5) If the circumstances outlined in this form change, please notify us immediately. 6) Please return the completed form, by post to: The Insolvency Service, Redundancy Payments Service, PO Box 5425, BIRMINGHAM, B6 6HP or by fax on 02 455 053 or by Email:HR@.insolvency.gsi.gov.uk. Please attach a read receipt to your e-mail if you require an acknowledgement. NB. If you fax or email the form to us there is no need for you to send the original form by post. Tel: 02 45644 for assistance on completing the form. Further Information on assistance for employers For more copies of the form you can down load one from our website on http://www.insolvency.gov.uklforms/forms.htm Guidance on redundancy handling and assistance for employers can be found on the following websites: Business Link http://www.businesslink.gov.uk BIS http://www.bis.gov.uklwhatwedo/employmentemploymentlegislation/ ice/index.html Local Development Agency http://www.englandsrdas.com Local Skills Agency http://inourhands.lsc.gov.uk Wales http://wales.gov.ukltopics/businessandeconomyl?lang=en Scotland http://www.scottish-enterprise.com/grow-your-business How to complete this form Your legal obligations ) You are required by law to notify the RPS of a proposal to dismiss 20 or more employees as redundant at one establishment within a period of 90 days or less. 2) If you operate from more than one site, each one is treated separately for notification and consultation purposes. An establishment is the site where an employee is assigned to work. You must complete a form for each site where 20 or more redundancies are proposed. 3) Your minimum period for notification and consultation for : Between 20 to 99 redundancies at one of your establishments, is at least 30 days before the first dismissal. 00 or more redundancies at one of your establishments, is at least 45 days before the first dismissal. 4) You must notify us at least 30/45 days before the first dismissal and before you issue any individual notices of dismissal. 5) You must send a copy of this notification to the representative of the employees being consulted. 6) If you have already notified us about one group of redundancies and you need to make further redundancies you should treat them as separate events. You do not need to add the numbers in the two groups together to calculate the minimum period for either group. 7) The notification date is the date in which we receive your completed form. 8) If it is not reasonably practicable for you to comply with the minimum notification periods you must make every effort do so as far as you are able. You must give reasons why you could not provide the information on time. May 204 Page - 8 Ref:POL005
May 204 Page - 9 Ref:POL005
Appendix B Redundancy Selection Criteria Where a group of employees need to be part of a pool from which a number will be chosen for redundancy, clear and transparent criteria should be used to identify the candidates to remain in employment and those to be made redundant. A panel of at least three managers should meet to form a selection panel. These should be drawn from: Assistant Principals/Deputy Principals 2 Direct Line Managers 3 Heads of Areas. The performance criteria should be agreed by the panel, according to the needs of the organisation. Each panel member should independently score the candidates according to the profroma (Appendix B part B). The three (or more) completed documents per candidate should then be averaged to find the highest scorer from among all the candidates in a particular role/post. Criteria should be objective and will possibly be different for each new situation. Criteria should possibly include: Qualifications 2 CPD 3 Attendance (be aware of Equality & Diversity issues) 4 Disciplinary Records 5 Appraisal Results 6 Effectiveness by results 7 Contribution to Department 8 Health & Safety 9 Customer Service 0 Administration Responsibility for New Courses 2 Initiative 3 Transferable Skills. May 204 Page - 0 Ref:POL005
Appendix B REDUNDANCY SELECTION FORM (relevant criteria to be assessed according to position) Name: Job Title: Department: D.O.B. D.O.C Age PERFORMANCE 2 3 4 5 COMMENTS GENERAL CRITERIA Key:. Areas of Weakness 2. Satisfactory 3. Better than Average 4. Very Good 5. Excellent Signed: Date: May 204 Page - Ref:POL005
Appendix C Service (Years) Age 7* 2 3 4 5 6 7 8 9 0 2 3 4 5 6 7 8 9 20 8 ½ 9 ½ 2 20 ½ 2 2½ - 2 ½ 2 2½ 3-22 ½ 2 2½ 3 3½ - 23 ½ 2 2½ 3 3½ 4 4½ - 24 2 2½ 3 3½ 4 4½ 5 5½ - 25 2 3 3½ 4 4½ 5 5½ 6 6½ - 26 2 3 4 4½ 5 5½ 6 6½ 7 7½ - 27 2 3 4 5 5½ 6 6½ 7 7½ 8 8½ - 28 2 3 4 5 6 6½ 7 7½ 8 8½ 9 9½ - 29 2 3 4 5 6 7 7½ 8 8½ 9 9½ 0 0½ - 30 2 3 4 5 6 7 8 8½ 9 9½ 0 0½ ½ - 3 2 3 4 5 6 7 8 9 9½ 0 0½ ½ 2 2½ - 32 2 3 4 5 6 7 8 9 0 0½ ½ 2 2½ 3 3½ - 33 2 3 4 5 6 7 8 9 0 ½ 2 2½ 3 3½ 4 4½ - 34 2 3 4 5 6 7 8 9 0 2 2½ 3 3½ 4 4½ 5 5½ - 35 2 3 4 5 6 7 8 9 0 2 3 3½ 4 4½ 5 5½ 6 6½ 36 2 3 4 5 6 7 8 9 0 2 3 4 4½ 5 5½ 6 6½ 7 37 2 3 4 5 6 7 8 9 0 2 3 4 5 5½ 6 6½ 7 7½ 38 2 3 4 5 6 7 8 9 0 2 3 4 5 6 6½ 7 7½ 8 39 2 3 4 5 6 7 8 9 0 2 3 4 5 6 7 7½ 8 8½ 40 2 3 4 5 6 7 8 9 0 2 3 4 5 6 7 8 8½ 9 4 2 3 4 5 6 7 8 9 0 2 3 4 5 6 7 8 9 9½ 42 2½ 3½ 4½ 5½ 6½ 7½ 8½ 9½ 0½ ½ 2½ 3½ 4½ 5½ 6½ 7½ 8½ 9½ 20½ 43 3 4 5 6 7 8 9 0 2 3 4 5 6 7 8 9 20 2 44 3 4½ 5½ 6½ 7½ 8½ 9½ 0½ ½ 2½ 3½ 4½ 5½ 6½ 7½ 8½ 9½ 20½ 2½ 45 3 4½ 6 7 8 9 0 2 3 4 5 6 7 8 9 20 2 22 46 3 4½ 6 7½ 8½ 9½ 0½ ½ 2½ 3½ 4½ 5½ 6½ 7½ 8½ 9½ 20½ 2½ 22½ 47 3 4½ 6 7½ 9 0 2 3 4 5 6 7 8 9 20 2 22 23 48 3 4½ 6 7½ 9 0½ ½ 2½ 3½ 4½ 5½ 6½ 7½ 8½ 9½ 20½ 2½ 22½ 23½ 49 3 4½ 6 7½ 9 0½ 2 3 4 5 6 7 8 9 20 2 22 23 24 50 3 4½ 6 7½ 9 0½ 2 3½ 4½ 5½ 6½ 7½ 8½ 9½ 20½ 2½ 22½ 23½ 24½ 5 3 4½ 6 7½ 9 0½ 2 3½ 5 6 7 8 9 20 2 22 23 24 25 52 3 4½ 6 7½ 9 0½ 2 3½ 5 6½ 7½ 8½ 9½ 20½ 2½ 22½ 23½ 24½ 25½ 53 3 4½ 6 7½ 9 0½ 2 3½ 5 6½ 8 9 20 2 22 23 24 25 26 54 3 4½ 6 7½ 9 0½ 2 3½ 5 6½ 8 9½ 20½ 2½ 22½ 23½ 24½ 25½ 26½ 55 3 4½ 6 7½ 9 0½ 2 3½ 5 6½ 8 9½ 2 22 23 24 25 26 27 56 3 4½ 6 7½ 9 0½ 2 3½ 5 6½ 8 9½ 2 22½ 23½ 24½ 25½ 26½ 27½ 57 3 4½ 6 7½ 9 0½ 2 3½ 5 6½ 8 9½ 2 22½ 24 25 26 27 28 58 3 4½ 6 7½ 9 0½ 2 3½ 5 6½ 8 9½ 2 22½ 24 25½ 26½ 27½ 28½ 59 3 4½ 6 7½ 9 0½ 2 3½ 5 6½ 8 9½ 2 22½ 24 25½ 27 28 29 60 3 4½ 6 7½ 9 0½ 2 3½ 5 6½ 8 9½ 2 22½ 24 25½ 27 28½ 29½ 6+ 3 4½ 6 7½ 9 0½ 2 3½ 5 6½ 8 9½ 2 22½ 24 25½ 27 28½ 30 May 204 Page - 2 Ref:POL005
Appendix D Standard Letter Dear Further to our meeting on I can confirm that due to your position becomes redundant with effect from. You are expected to work until this date. Details of your redundancy entitlement are as follows: Redundancy based on age + length of service xxx weeks x xxx (tax free) If applicable Notice based on length of xxx weeks x xxx Outstanding holiday pay xxx weeks x xxx Should you wish to appeal against the decision to terminate your contract for reasons of redundancy you should do so in writing to the Principal, Mrs Anne Tyrrell. You have 4 working days from the date of this letter to lodge your appeal. You will be sent details of all available vacancies at the College that arise during your notice period. If you wish to apply for any of the vacancies you should contact the HR department. I would like to thank you for your service to North Lindsey College and wish you success for the future. Yours sincerely HR or Line Manager May 204 Page - 3 - Ref:POL005