Registered Redundancy Policy References Other CLC policies relating to this policy Promoting Equality and Fair Treatment at Work Disciplinary Policy Wellbeing at Work Policy Staff Handbook Management of Absence Policy Grievance Policy Procedure for Leaving Supervision and Appraisal Legislation relating to this policy Trade Union and Labour Relations (Consolidation) Act 1992 Collective Redundancies and transfer of Undertakings (Protection of Employment) (Amendment Regulations 2014 Employment Rights Act 1996 Information and Consultation of Employees Regulations 2004 Equality Act 2010 Review Dates Date of last review January 2016 Date of next Review January 2017 Responsible for Policy Review Human Resources Department 1
CONTENTS Policy Statement... Page 3 Scope... Page 3 Principles... Page 3 Policy Aim... Page 4 Avoiding compulsory redundancies... Page 4 Statutory Redundancy Pay... Page 5 Consultation... Page 5 Voluntary Redundancy... Page 6 Suitable Alternative Employment (Redeployment)... Page 7 Compulsory Redundancy Procedure... Page 9 Appeals Procedure... Page 11 Further Provisions under this policy... Page 11 Appendix 1 Selection Criteria Matrix for Compulsory Redundancy... Formats Folder 2
1. Policy Statement Community Lives Consortium (the Consortium) is committed to creating as secure an employment environment as possible by means of effective business, service and staff planning. However, the continued economic sustainability of the Consortium needs to be maintained and changes in organisational requirements may affect staffing needs. The Consortium will, in consultation with employees and Unison, seek to minimise the effect of redundancies through dedicating time and effort to finding alternative employment within the organisation for affected employees. Where compulsory redundancies become unavoidable the Consortium will manage the redundancy process in the most fair, consistent and sympathetic manner possible. This policy has been agreed with Unison and will be reviewed from time to time to ensure that it reflects our legal obligations and business needs. This policy does not form part of any employee s contract of employment and can therefore be amended at any time in consultation with Unison. 2. Scope This Policy applies to all employees of the Consortium, whether full time or part time. 3. Principles Redundancy only arises in three narrowly defined circumstances. These are; either there has been, or there is going to be: a closure of the business a closure of the workplace a diminution in the need for employees Where an employee affected by redundancy is recognised as a Representative of Unison, the Consortium will notify Unison s Regional Office. In carrying out any redundancy exercise the Consortium will not discriminate directly or indirectly on grounds of gender, sexual orientation, marital or civil partner status, gender reassignment, race, colour, nationality, ethnic or national origin, religion or belief, disability or age. Part time employees and those working under fixed term contracts will not be treated differently to permanent, full time comparators. The Consortium will comply with the statutory reporting requirements of the Secretary of State should the numbers of potential redundancies indicate that this is necessary. 3
4. Policy Aim The Consortium will always try to avoid the need for compulsory redundancies, however sometimes this may be necessary as a result of changes to the pattern or volume of our work; changes to service delivery or methods of working or a reduction in funding, which result in the need for the number of employees reducing. The purpose of this policy is to ensure that, whenever a reduction in employee numbers may become necessary, that: (a) (b) (c) (d) we communicate clearly with all affected employees and ensure that they are treated fairly; we try to find ways of avoiding compulsory redundancies; we consult with employees and with Unison; and any selection for compulsory redundancy is undertaken fairly, reasonably and without discrimination. The Consortium needs to retain those employees best able to meet the future business needs of the Company. Therefore fair and equitable selection criteria will be used to determine those employees who will fulfil those needs, please see Appendix 1 for Selection Criteria. 5. Avoiding Compulsory Redundancies Where the Consortium is proposing to make redundancies we will enter into consultation with all affected employees on an individual basis and also with Unison. In the first instance we will consider steps that might, depending on the circumstances, be taken to avoid the need for compulsory redundancies. Examples of these steps may include: Reviewing the use of agency staff, self employed contractors and consultants. Reducing spending in other areas of the business. Restricting recruitment within the affected categories of employee and in those areas into which affected employees might be redeployed. Reducing overtime in affected areas or departments to what is needed to meet contractual commitments or to provide essential services. Natural wastage i.e. not filling existing and future vacancies in an attempt to reduce staffing levels. Cessation of the use of Casual Support Workers. Freezing salaries for a specified period. Considering the introduction of short time working or other flexible working arrangements, where these are practicable. Identifying suitable alternative work that might be offered to potentially redundant employees. Inviting applications for voluntary redundancy. In all cases the acceptance of a volunteer for redundancy will be a matter of the Consortium s discretion and we reserve the right not to offer voluntary redundancy terms or to refuse an application where it is not in the interest of the Consortium to do so. 4
The above list is indicative only and measures to avoid compulsory redundancies may not be restricted to those listed. Any measures adopted must not adversely affect the business of the Consortium and our ability to serve our customers. 6. Statutory Redundancy Pay Employees may be entitled to redundancy payments if they have been continuously employed for at least 2 years and are dismissed for the reason of redundancy: Statutory Redundancy Payments for affected employees, with 2 or more years continuous service with the Consortium, are calculated on the basis of: 0.5 week's pay for each full year of service while they were under 22 1 week's pay for each full year of service while they were 22 or older, but under 41 1.5 week's pay for each full year of service while they were 41 or older. Employees can only count a maximum of 20 years' service and the 'weekly pay' is subject to an upper limit. The weekly pay and maximum redundancy award limits are set by the government each year. Redundancy payments will be calculated in accordance with employee's actual rates of pay at the time of the redundancy using the statutory calculations in force at the time of the redundancy. The Consortium may enhance redundancy payments subject to the economic and financial situation at that time. Consideration may also be given to making a redundancy payment to affected employees with less than 2 years continuous service. This will be entirely discretionary and no decision made at the time of a particular redundancy will imply a precedent for future exercises. Redundancy payments are not subject to Tax and National Insurance. Tax and National Insurance will be deducted from other termination payments, eg payment in lieu of notice or accrued but not taken holiday pay. 7. Consultation The Consortium will consult with Unison and all affected employees with a view to reaching agreement on ways of: Avoiding compulsory redundancies. Reducing the numbers of employees to be made redundant. Mitigating the consequences of those redundancies e.g. time off for job seeking, redundancy counselling etc. 5
The aim of consultation is to provide the opportunity for all concerned to share the problem and explore options. Good cooperation between Unison, managers and employees will aid better decision making. The duty to consult applies even when the employees to be made redundant are volunteers. The Consortium will consult with employees whether they are members of Unison or not, and all affected employees will be consulted with on an individual basis. Consultation will begin in good time but must begin: at least 30 days before the first dismissal is due to take effect if 20 to 99 employees are to be made redundant within the Company over a period of 90 days or less at least 45 days before the first dismissal is due to take effect if 100 or more employees are to be made redundant within the Company over a period of 90 days or less. The Consortium is committed to the principle of consultation, and will therefore consult with Unison and potentially affected employees if redundancy is being considered, this includes where less than 20 employees are affected. At the beginning of the formal consultation process, the Consortium will provide, in writing, the following information to the potentially affected employees and to Unison: reasons for the proposed redundancies numbers and descriptions of employees affected proposed method of selecting the employees who may be dismissed proposed method of carrying out the dismissals, taking account of any agreed procedure, including the period over which the dismissals are to take effect how redundancy payments will be calculated. During the consultation process, CLC Unison Representatives will be given access to those members potentially affected by the redundancy. They will also be provided with facilities and reasonable time off with pay in order to carry out their consultative role, in accordance with the Facilities Agreement between the Consortium and Unison. Where it is considered that a job role is no longer required, or where it is identified that a reduction in the number of employees performing a job role is required, the employees performing those roles will be informed in writing that they are at risk of redundancy. 8. Voluntary Redundancy To avoid the need for compulsory redundancies, the Consortium will firstly consider inviting employees to volunteer for redundancy. Requests for voluntary severance will be accepted solely at the reasonable discretion of the Consortium. In considering such requests, the Consortium will be guided by the Company's interest and financial considerations and the need to retain essential skills and knowledge. 6
The selection criteria for accepting requests for voluntary redundancy will be devised by the Management Team. Dependent on the job role this will be: For Operational Departments Registered Network Managers, Director of Operations and Human Resources Manager. For Central Departments the Department Head, Deputy Chief Executive and Human Resources Manager. The criteria will reflect the need to retain the essential skills and knowledge required for the future of the Consortium. Employees considered for voluntary severance may be eligible to receive a severance payment. In cases of voluntary severance the terms of any enhancement to the Statutory Redundancy payment will be made at the Consortium s discretion and may vary depending upon the circumstances of each redundancy proposal, taking account of the economic and financial situation, equality and value for money as appropriate. The Consortium will consult with Unison on the terms of each scheme for voluntary severance under each redundancy proposal. The Consortium reserves the right to reject volunteers in order to preserve skills and experience, and in the interests of retention of a balanced workforce to meet the future needs of the Consortium. If insufficient numbers volunteer or if insufficient numbers are accepted by the Consortium for voluntary redundancy then a fair, consistent, objective and non discriminatory selection procedure for Compulsory Redundancy may be undertaken by the Consortium based on the criteria stated below. 9. Suitable Alternative Employment (Redeployment) The Consortium has a statutory duty to provide suitable alternative employment for redundant employees. The Consortium will continue to look for and inform affected employees of any vacancies until their termination dates. Alternative employment may be offered subject to a trial period where appropriate. Redeployment The Consortium will consider whether the employees potentially affected by redundancy can be offered any suitable work that may be available. If alternative work is available, information will be provided, in writing, about the work (remuneration, job role, location etc) to enable the employee to consider whether to accept the work or not. Eligible employees will be those whose posts have been formally identified as provisionally redundant, at risk, or those who have received formal notice of redundancy. The redeployment procedure seeks to ensure that eligible employees are assisted to obtain suitable alternative posts within the Consortium. 7
In seeking to provide suitable alternative employment, consideration will be given to the comparability of the new position with that previously held, in terms of grade, salary and hours of work. It is acknowledged that exact matches may not be possible; therefore flexibility and an open minded approach will be necessary from both employees and management. During the Redundancy process, any provisionally redundant or at risk employees who may satisfy the essential selection criteria for a vacancy, and where redeployment is being contemplated, or those who could satisfy these criteria with reasonable retraining, should be considered for any suitable vacancies that may arise. Where it is unclear whether the employee could satisfy the essential selection criteria for selection for interview, with or without retraining, they will be offered the opportunity for interview regardless. Should more than one employee be suitable for redeployment into an alternative post, the vacancy will be notified to all those at risk. Such vacancies will be ring fenced for those affected by redundancy. Identified employees will be interviewed for the vacancy to assess their suitability. The interview panel will consist of more senior managers in the line management structure to the vacancy being filled. If an employee is unsuccessful at interview, written reasons will be provided to him/her indicating why an offer of the opportunity to be redeployed to this vacancy is not appropriate. Where an at risk employee is successful at interview they will be offered the opportunity to be redeployed to the new position, subject to a statutory four week trial period. The four week trial period can reasonably be extended by mutual agreement if it is considered that the employee could fully satisfy the essential selection criteria with a reasonable level of retraining. The nature, extent and opportunities for gaining such retraining will be agreed with Registered Network Manager or Department Head in discussion with the Director of Operations or Deputy Chief Executive, the employee and Staff Development Manager. Employees accept as a condition of their redeployment to undertake appropriate retraining as deemed necessary by the Consortium. The employee will be successfully redeployed to the new position subject to satisfactory completion of their trial period. A Performance Assessment will be conducted by the Registered Network Manager, Director of Operations, Department Head or Deputy Chief Executive to assess whether or not the employee meets the essential requirements of the role. Where an employee is successfully redeployed into an alternative vacancy, the terms and conditions will be in accordance with the standard terms and conditions and salary for the vacancy in question. Employees who are redeployed will receive a written statement of their new terms and conditions and their continuity of service will be protected. 8
Where a new post is offered it will not normally be appropriate for the Consortium to seek to terminate a trial period prematurely. However, following appropriate consultation between the employee, the Registered Network Manager or Department Head, the Director of Operations or Deputy Chief Executive and the Human Resources Manager, trial periods may be terminated by the Consortium at any time during the period if the redeployment is not considered successful for reasons arising directly from the change in role. If the trial period is unsuccessful and is ended by the Consortium, the employee will be dismissed for the reason of redundancy and, if eligible, will be entitled to receive a redundancy payment. If the employee is not informed that the redeployment has been unsuccessful before the end of the trial period, the post must be confirmed. Following appropriate consultation, the employee may terminate a trial period at any time where there are valid grounds that it is considered unsuccessful. In these circumstances the employee will be dismissed for the reason of redundancy and, if eligible, will be entitled to receive a redundancy payment. If the employee continues to work after the end of their trial period, they will be deemed to have accepted the new role, and will be treated as not having been dismissed and thereafter would have no right to a redundancy payment. Any employee who has received formal notice of redundancy and who unreasonably declines an offer of suitable alternative employment or unreasonably terminates a trial period in that employment will normally forfeit the right to redundancy pay. If, after applying this procedure, no suitable candidates who are affected by redundancy are identified, only then will the vacancy be advertised. Employees who are redeployed and working under a Right to Request Flexible Working Agreement are advised that they would be required to reapply for their flexible working, since flexible working arrangements do not transfer from post to post. Requests will not be unreasonably refused. Where there is a dispute over the reasons for non selection for interview or redeployment, the suitability of alternative employment, or where a trial period is considered to have been terminated unreasonably by the Consortium, the matter will be reviewed in accordance with the Consortium s Grievance Policy. 10. Compulsory Redundancy Procedure Selection criteria and procedure To determine which employees are to be selected for redundancy, a matrix will be used for each employee in the at risk pool. This matrix will score each individual on set criteria. The selection criteria are weighted to reflect their relative importance. An example of a selection matrix can be found in Appendix 1. A new selection matrix will be prepared and agreed for each exercise dependent upon the constituents of the at risk pool. The selection criteria may include: Skills and competencies (Standard of work) 9
Qualifications Flexibility Absence (in previous 2 years) Disciplinary record Employees will not be selected for redundancy on the basis of criteria unrelated to their role or employment or any ground contrary to good employment practice, e.g. on grounds of gender, sexual orientation, marital or civil partner status, gender reassignment, race, colour, nationality, ethnic or national origin, religion or belief, disability or age. Part time employees and those working under fixed term contracts will not be treated differently to permanent, full time comparators. Should it become apparent that a person with a disability is at risk of redundancy, the Consortium will consult with the Occupational Health Service when determining suitable alternative employment. Disability related or pregnancy related absences will be disregarded when absence scores are calculated and will not be considered as part of the selection for redundancy. Absences will be considered over the previous two years. The matrix will be completed for each employee in the at risk group by a panel of 3, including representation from the Human Resources Department. Dependent on the job role in question, the panel will consist of 3 of the following: Registered Network Managers Department Heads Director of Operations Director of Business and Finance Deputy Chief Executive Human Resources Co ordinator Human Resources Manager Assessments must be objective and, wherever possible, supported with documented and verifiable evidence. Additional information to support the scores will be gathered from as wide a range of sources as possible. Detailed notes must be kept at all stages of the assessment process so that these can be referred to in the event of an appeal. Preconceived opinions regarding an employee must not be allowed to influence the assessment. There must be no discrimination on unlawful grounds and the Consortium s Promoting Equality and Fair Treatment at Work Policy must be adhered to. Scores must be justifiable at appeal. Employees will be selected for redundancy on the basis of a points system. Employees with the highest scores will be selected for redundancy. We will then consult individually with those employees who have been provisionally selected for redundancy. Notice of redundancy 10
Following consultation and where compulsory redundancy is required, affected employees will be issued with a formal notice of their redundancy. The redundancy notice will contain: their selection score the date their employment will be terminated. details of their redundancy payment. whether or not they will be required to work their notice period in accordance with their contract of employment. If applicable, how many weeks payment in lieu of notice they will receive. If applicable, how many hours holiday pay they will receive. Their right to a reasonable amount of paid time off work to secure alternative employment elsewhere. Details of the Employee Assistance Programme. Employees who are selected for redundancy will be given their contractual notice before their employment ends. The contractual notice periods are: one week's notice if the employee is on their probationary period. one month notice during the first four complete years of continuous employment. Employees with more than four continuous year s service will receive one week s notice per completed year s service, up to a maximum of 12 week s notice for 12 or more year s continuous service. This minimum may be varied in individual cases dependent on their individual terms and conditions of employment. The Consortium reserves the right to make payments in lieu of notice to employees under notice of redundancy, however employees under notice of redundancy may be required to continue working up to the date on which their formal notice expires. Where an employee wishes to terminate their employment before the end of their formal notice issued by the Consortium, they may do so upon providing their written notice under the terms of their contract of employment. The redundancy payment will be made at the end of either the employer s or the employee s notice period. 11. Appeals Procedure Employees wishing to appeal against selection for redundancy must do so in writing within five working days of receipt of their formal redundancy notice, clearly stating the grounds for their appeal. Appeals must be sent to the Human Resources Manager who, in consultation with the Deputy Chief Executive, Director of Operations or Director of Business and Finance, will consider the Appeal. The decision of the Appeal panel will be final. 12. Further Provisions under this policy In accordance with statutory provision, the Company will provide employees who are under notice of redundancy a reasonable amount of paid time off to look for alternative employment 11
and to attend job interviews outside of the Consortium. Time off must be authorised by their line manager prior to the event. The Consortium will provide support and counselling via the Employee Assistance programme for all employees throughout the change period. Employees who are dismissed under the Consortium s Disciplinary Policy whilst under notice of redundancy will forfeit any entitlement to a redundancy payment, regardless of whether the redundancy was to be voluntary or compulsory. If any monies are owed to the Consortium by any employee at the time of their redundancy e.g. through a Learning Loan, the Purchase of Additional Annual Leave, a salary advance, salary overpayment etc. then the total amount owed to the Consortium will be deducted from their final salary payment on termination of their employment. 12