restructure and redundancy policy april 2016 policies r… · handling restructures and any...
TRANSCRIPT
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Restructure and Redundancy Policy
April 2016
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CONTENTS 1. INTRODUCTION 2. PURPOSE 3. SCOPE 4. LINKS WITH OTHER POLICIES / PROCESSES 5. GENERAL PRINCIPLES OF THE REDUNDANCY POLICY 6. DEFINITION OF REDUNDANCY 7. AVOIDING OR MINIMISING REDUNDANCIES 8. THE CONSULTATION PROCESS – INFORMAL STAGE 9. RESTRUCTURES AND JOB EVALUATION 10. FORMAL CONSULTATION 11. DECISION ON THE FINALISED PROPOSAL 12. CONSULTATION PERIOD REVIEW MEETING 13. ASSIMILATION-TEST OF DIFFERENCE PROCESS 14. SELECTION FOR REDUNDANCY 15. APPOINTMENT TO A NEW STRUCTURE 16. TERMINATION IN THE INTEREST OF EFFICIENCY 17 REDUNDANCY PAY 18 AT RISK MEETING 19 NOTICE PERIODS 20 RIGHT OF APPEAL 21 REDEPLOYMENT 22 STATUTORY TRIAL PERIOD 23 PAY PROTECTION 24 TIME OFF TO LOOK FOR WORK 25 SPECIAL CONSIDERATIONS 26 OFFER OF EMPLOYMENT WITH A BODY COVERED BY THE LOCAL
MODIFICATION ORDER. 27 USEFUL DOCUMENTS AND ADDITIONAL INFORMATION APPENDICES APPENDIX A – Job Evaluation Process in Relation to Restructures APPENDIX B – Test of Difference Form APPENDIX C – Voluntary Redundancy Expression of Interest Form APPENDIX D – Formal Application for Voluntary Redundancy APPENDIX E - Individual Redundancy Scoring Matrix APPENDIX F - Overall Redundancy Scoring Matrix APPENDIX G – Skills Matching Pro-Forma APPENDIX H - Expression of Interest Form for Ring fenced Posts
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1. INTRODUCTION The Council recognises that organisational reviews and restructuring may be required
for a variety of reasons such as economic factors, changes to government legislation or changes to the way services are to be delivered. Organisation structures therefore need to be reviewed from time to time to respond to change and ensure that the Council remains effective and efficient, and in some cases this may result in reductions in staffing levels.
In addition, the Council recognises that changes in the demand for services, levels of
funding and/or the need for change because of technological or legislative changes could equally lead to a requirement for a reduction in staffing levels.
Ashfield District Council will take all necessary steps to minimise compulsory
redundancies and to support employees in identifying suitable alternative employment where potential redundancy situations arise. Where they cannot be avoided the Council needs to ensure a clear, consistent policy is in place that ensures fairness and consistency in the implementation of required procedures for selection for redundancy.
2. PURPOSE The purpose of this policy is to outline the Council’s approach to managing and
handling restructures and any resulting redundancy situations in a fair, consistent and non-discriminatory manner. It is important to note that not all restructure exercises will result in redundancy situations but the same processes for consultation and recruitment to the new structure outlined in this policy should be used.
This policy should be used either:-
where a restructure is being implemented to deliver services in a different way that will not result in reductions in staffing levels (in these cases the sections referring to redundancies need not be referred to) or
where the Council is required to reduce a team by a specified number of posts. For example, where there is a team of employees and the number of posts is to be reduced with no changes to the job description and no other restructuring within the team (in these cases key selection criteria will be used – see section 16) or
where redundancies are to be actioned through restructuring a team to deliver services in an alternative way (in these cases the assimilation and appointment to the structure process will be applied – see Section 14.3)
3. SCOPE This policy applies to all employees of the Council covered by the terms of the
National Joint Council for Local Government Services. Employees covered by the Joint Negotiating Committees for Chief Officers and Chief
Executives, and NJC posts nominated as the Council’s Monitoring and Section 151
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Officers have particular provisions applied to them. In these cases, this policy will be applied as closely as possible subject to such modification as may be required due to those provisions.
4. LINKS WITH OTHER POLICIES / PROCESSES
Voluntary Redundancy / Early Retirement / Flexible Retirement / Voluntary Reduction in Working Hours / Redeployment Policy / Pay Protection Policy.
Where appropriate, these will be considered as a method of minimising and avoiding compulsory redundancies. Please refer to the relevant policies / processes / schemes for more information.
Redeployment All employees confirmed as being selected for redundancy (who have more than 12
months continuous service) will be supported through the redeployment process. Please refer to the Redeployment Policy for more information.
Payments
For information on the Council’s approach to the payments resulting from redundancy situations, please refer to the Discretionary Compensation Payments on Cessation of Employment Policy
5. GENERAL PRINCIPLES OF THE REDUNDANCY POLICY Working Days For the purposes of this policy, the time limits referred to relate to working days,
irrespective of the employee’s working pattern. Accompaniment at meetings Within a restructuring or redundancy process, employees may be accompanied to
meetings by a Trade Union representative or work colleague, so far as is reasonably practical in terms of availability and travelling distance. All parties must ensure that there are no unreasonable delays to the process.
Where a Trade Union representative attends a meeting, they are able to provide
information but cannot answer questions on behalf of the employee. 6. DEFINITION OF REDUNDANCY Under the Employment Rights Act 1996, redundancy arises when employees are
dismissed because:
The Council has ceased, or intends to cease, to carry on the business for the purposes of which the employee employed by it or
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The Council has ceased, or intends to cease, to carry on the business in the place where the employee was so employed; or
The Council’s requirements for employees to carry out work of a particular kind has ceased or diminished or are expected to cease or diminish; or
The Council’s requirements for the employees to carry out work of a particular kind, in the place where they were so employed, has ceased or diminished or are expected to cease or diminish.
For the purposes of this policy, employees will normally be considered potentially redundant if:
they hold a substantive post within the immediate area affected by a closure or a change in the provision or service; and / or
there is an identified individual whose work is no longer required to be undertaken or to be undertaken in a different way; and/or
they are part of a group which is subject to a Council requirement to reduce staffing levels, whatever the reason.
Where a department or other identifiable business entity is to be transferred, for
whatever reason, from the Council to another employer and it is determined that the Transfer of Undertakings Protection of Employment Regulations (TUPE) are appropriate to the proposed transfer, then the provisions of this policy do not apply.
7. AVOIDING OR MINIMISING REDUNDANCIES Where staffing reductions are proposed to be made, the Council will ensure that every
effort is made to avoid or minimise possible redundancies, including:
Effective human resource strategies and workforce planning
Early consultation with Trade Unions and affected staff
Natural wastage
Reduction in overtime
Restrictions on recruitment
Voluntary reduction in contracted hours
Retraining and redeployment
Voluntary redundancy / early retirement (Discretionary Compensation Payments on Cessation of Employment Policy)Reorganisation of work or considering volunteers for redundancy elsewhere in the organisation where their release would provide redeployment opportunities for those at risk
Flexible retirement
8. THE CONSULTATION PROCESS – INFORMAL STAGE The Council is committed to consulting with the relevant Trade Unions and affected
individuals to keep them as informed as possible. Responsibility for ensuring effective consultation lies with the relevant Third Tier Officer or Service Director, supported by Human Resources as appropriate.
During informal consultation managers may have ideas about how they need to
change or review their team to meet service delivery requirements, including the
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number of potential posts that will be redundant. Managers may speak with employees individually, in groups or at team meetings to generate ideas about how best to deliver services. They may also seek the views of customers and other departments such as Human Resources, Corporate Performance and Improvement Unit or external partners.
This stage is an information gathering exercise which will inform the proposal and also
determine any alternative ways of avoiding redundancies. However, it may be appropriate for this information to be gathered as part of the formal consultation process and so the level and format of informal consultation may vary due to specific circumstances.
Wherever possible, managers should undertake informal consultation, but it is
recognised that there may be a need to progress straight to formal consultation. 9 RESTRUCTURES AND JOB EVALUATION During informal consultation period managers may also gain opinions from employees
in relation to the types of posts they feel will be required in the service going forward. However, managers should bear in mind that formal consultation should only commence once all new posts have been graded through the job evaluation process. A flowchart detailing the process for job evaluations during a restructure is detailed in Appendix A.
Mangers are advised to seek further advice from Human Resources early in the
restructure process so that they can determine where new job description questionnaires (JDQs) will be required and confirm the process and timescales for completion of these. It is recommended that these discussions occur before managers start to draft job descriptions and JDQs. Managers are also reminded to ensure that they allow sufficient time within the restructure process for job evaluation documents to be reviewed by HR and evaluated by a panel.
10. FORMAL CONSULTATION The statutory minimum timescales for consultation with the recognised Trade Unions
(where there are to be redundancies) are:
at least 30 days before the first dismissal takes effect if 20 to 99 employees are to be made redundant at one establishment over a period of 90 days or less.
at least 45 days before the first dismissal takes effect if 100 or more employees are to be made redundant at one establishment over a period of 90 days or less.
Where fewer than 20 redundancies are proposed, there is no statutory minimum but in
line with good practice, the Council will consult at least 30 days before the first dismissal takes place. Where there is a restructure that will not result in staffing reductions, the consultation period will be a minimum of two weeks.
The manager should provide at least 5 working days’ written notice of the intention to
carry out a consultation meeting to the relevant secretaries of the Trade Unions to
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enable them to allocate a representative if they consider it appropriate. Employees should also be provided with 5 working days’ written notice of the meeting. This meeting should be arranged irrespective of the number of employees affected and Trade Unions should be invited regardless of whether or not there are Trade Unions members in the team.
This meeting represents the commencement of the formal consultation period and all potentially affected employees, recognised Trade Union representatives and a representative from Human Resources will be invited to attend.
At the meeting attendees should be provided with as much information as possible
about the proposals. If a draft proposal has already been developed, attendees should be provided with a copy and the manager should present the following:-
The business case / reasons for the proposed redundancies / restructure
Potential numbers and categories of employees affected.
The process for implementing any redundancies (including a draft timetable).
Proposed selection criteria, including any weightings to be applied (where applicable)
Details of the proposed new structure (where applicable)
Details of how any redundancy payments will be made (please refer to the Discretionary Compensation Payments on Cessation of Employment Policy)
Confirmation that other options will be considered (such as voluntary redundancy or early retirement).
All attendees at consultation meetings should have an opportunity to ask questions
about and comment on the proposals. Employees are also encouraged to talk to their Trade Union representatives about the proposals outside of any meetings.
Affected employees and Trade Union representatives should be asked to formally comment on proposals in writing. These comments may include any alternative suggestions or solutions, comments on the proposed selection criteria and any representations regarding the proposed structure and post grades. A deadline for responses to be received should be clearly set which is in line with required consultation periods. Where a response is not received within the set deadlines (i.e. the end of the consultation period) it will be assumed that they are in agreement with the proposals.
Where a restructure will result in potential redundancy situations, employees may volunteer for redundancy or put their names forward to indicate that they are interested in voluntary redundancy or early retirement during the consultation period. These will be considered in line with the Discretionary Compensation Payments on Cessation of Employment Policy and future service delivery requirements. It is advisable for managers to set a deadline for the submission of voluntary redundancy requests. Employees on maternity/adoption leave, long term sickness absence, secondment and career breaks should also be formally consulted with and appropriate arrangements put in place, e.g. inviting them to meetings, sending information to home addresses, visiting employees at home or communicating through appropriate representatives. Details of this should be recorded.
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11. DECISION ON THE FINALISED PROPOSAL Once the formal consultation period has closed, a finalised report will be produced for
approval. In most cases the Head of Paid Services will take the decision to reduce or change the establishment of a section. Changes to establishment that will result in savings or costs greater than £50,000 are considered to be key decisions requiring a decision by either the Portfolio Holder or Cabinet under the Council’s constitution. (Please note that not all of the following will be applicable to every situation and the report should provide the information relevant to the particular situation).
The original proposals
Any amendments to the structure from those originally proposed
Details of the finalised structure including job descriptions, person specifications and grades. (These should be grades that have been confirmed through evaluation rather than indicative grades).
Potential numbers and categories of employees affected.
Details of any redundancies (if applicable)
The process for recruiting to the new structure (if applicable) including a draft timetable.
Redundancy selection criteria, including any weightings to be applied (if applicable)
Details of compensation payments (please refer to the Discretionary Compensation Payments on Cessation of Employment Policy)
Details of the Equality Impact Assessment that has been completed (this should be completed in all cases).
Details of any volunteers for redundancy / early retirement and the implications (including financial details) of this (if applicable)
Full redundancy and pension strain costs (if applicable)
Summary of consultation comments and details, including employee proposals that have been included and, where applicable, details of why any suggested alternative approaches were rejected.
Employees cannot be given formal notice of redundancy until the approval decision has been made.
In circumstances where a new structure is proposed, the report should build in
sufficient time to allow for recruitment to the new structure to take place and any appeals from those employees who are unsuccessful in being appointed to be new structure (and therefore redundant) to take place prior to the new structure becoming effective. As appointment to the new structure progresses on a cascading basis (see Section 15) implementation can commence prior to the effective date.
Managers should also bear in mind that in circumstances where the proposed
structure has changed due to comments made by employees and this has resulted in changes to proposed job descriptions, JDQs etc sufficient time should be built into the process for any further evaluations that may need to be completed.
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For proposed redundancies of 20 or more at one establishment in a 90 day period, the Department for Business, Innovation and Skills (BIS) will be informed, by Human Resources on a HR1 form. A copy of the completed form must be provided to the Trade Unions.
12. CONSULTATION PERIOD REVIEW MEETING The purpose of this meeting is to communicate to affected employees the finalised
decision and either provide them with a copy of the report or advise them where they can access a copy. At the meeting the manager will present the finalised report including a summary of the employee proposals that have been included in the report and, if applicable, why any suggested proposals were rejected. Where the initial proposal initially presented at the consultation meeting has not been changed significantly the manager may confirm the finalised decision in writing or via email. However, in these circumstances they should allow the employees the opportunity to meet with the manager to answer any queries that they may have or provide any further clarification that is requested. However, these discussions will not change the finalised decision.
13. ASSIMILATION-TEST OF DIFFERENCE PROCESS When employees are affected by an organisational restructure, before any process for
voluntary or compulsory redundancy is implemented, consideration should be given to assimilating employees into jobs in the new structure. Assimilation should be used when there is no or little change to jobs, although employees could be moved to new service areas or have new line management arrangements. Assimilation is where following a Test of Difference assessment employees can be ‘slotted’ into jobs with no need for selection criteria skills matching and/or a recruitment exercise to be applied or any competitive exercise for employees to undergo. For assimilation purposes the job in the new structure must not be ‘significantly different’ from the employee’s current job.
The Test of Difference exercise involves completion of an assessment template
(Appendix B). The following criteria must be satisfied in the case of each employee:-
the grade for the job must be unchanged (at its maximum) as a result of the restructuring exercise, or be within one grade either up or down.
there must not be more post holders than posts within the new structure who could reasonably be’ slotted’ in (after taking account of requests for voluntary redundancy), and
the job content not be significantly different in terms of accountabilities, activities and responsibilities..
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In order that a changed post could be considered as a potentially suitable one it should contain all or the majority of the following attributes:-
It should:-
wherever possible, the major elements of the job should be the same as or similar to the existing job or require transferable skills which the individual employee possesses,
be the same grade or within one grade above or below the employee’s substantive grade (at its maximum), with other terms and conditions that are equivalent to or very similar to those the employee currently enjoys,
be of equal status, e.g. reporting lines and number of direct reports and contain major elements that are the same or similar in content,
have a working environment that is most suitable for or capable of being adapted to the needs of an employee’s physical condition,
contain working patterns similar to those in the employee’s current job or capable of adaptation to the employee’s personal circumstances, e.g. primary carer responsibilities.
If the Test of Difference identifies that the job is significantly different then skills
matching will be undertaken as detailed in Section 14.3.
Where the Test of Difference assessment identifies 2 or more employees whose job is not significantly different from the new jobs and where there are more employees than suitable jobs; assuming there are more employees to posts following any VR agreements, these employees will be ‘ring fenced’ and subject to a selection and recruitment process. Any of these employees who are not successful in being appointed to the job(s) in the restructure will then be placed in a redundancy situation and served notice of redundancy.
14. SELECTION FOR REDUNDANCY Any situation with the potential for redundancies will have its own set of unique
circumstances. These should be considered carefully before determining the method of selection for redundancy.
The Council’s responsibility is to determine which employees have the various skills,
expertise and flexibility necessary to enable them to provide a range of services in a cost effective manner. The key selection criteria for redundancy selection are detailed below and will be fairly and consistently applied. Any weighting that will be applied will be provided as part of the consultation process
The process options provided by this policy for selecting employees for redundancy
are as follows:-
Voluntary redundancy
Selection by measurement against key selection criteria.
Skills matching
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Each of the three options will be suitable for particular circumstances depending on the relevant factors and therefore may not necessarily all be utilised on every potential redundancy situation.
14.1. Voluntary Redundancy Before implementing a selection process for compulsory redundancy, the Council will
first seek volunteers for redundancy from:-
a) the pool of employees affected by the circumstances and then, if necessary or appropriate,
b) from the Council’s wider workforce.
The Council will actively explore opportunities for “bumping” when considering
voluntary redundancies. “Bumping” is a legitimate method of selecting an employee for redundancy who is not “at risk” of redundancy in order to preserve the employment of the redundant employee.
There is no legal right to voluntary redundancy. As such, the Council will give thorough consideration to its business needs before exercising its discretion to approve or reject a formal request for voluntary redundancy.
A deadline for submitting a formal application for voluntary redundancy should be confirmed early on in the consultation period
An employee will be given estimates of their eligible redundancy compensation
payments (and pension benefits where applicable) as soon as practicably possible after submitting an expression of interest.
Employees must complete the following forms when expressing an interest or formally
requesting voluntary redundancy. These can be found on the Council’s Intranet:-
Expression of interest for voluntary redundancy, (Appendix C)
Formal request for voluntary redundancy, (Appendix D) Both, expressions of interest and formal requests for voluntary redundancy should be
submitted to the HR Manager. The information will be shared with Senior Management and other relevant managers/officers responsible for implementing reorganisation and reductions in the workforce. Information will not be shared with a third party other than where a third party is involved in the implementation of the reorganisation and reduction in workforce. All employees who have formally requested voluntary redundancy will be provided with written confirmation of the outcome of their application within a reasonable period of time.
A formal application for voluntary redundancy can be withdrawn by the employee at
any time prior to an agreement being reached. However, as soon as the employee has been notified in writing that their request has been agreed, the employee has 10 working days to withdraw from the agreement. Any notification of withdrawal must be in writing and addressed to the relevant Service Manager/Director and copied to the
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HR Manager. After the 10 days has lapsed, if no withdrawal from the agreement has been received, the employee will be contractually bound to the voluntary redundancy agreement.
14.2. Measurement against Key Selection Criteria
During times of unprecedented change, it is essential that the Council retains a competent and balanced workforce appropriate to future business needs. This option for selection for redundancy is based upon measurement against key selection criteria and lends itself best to situations where there needs to be a reduction in the number of employees where the pool of employees all do the same or similar type of work.
Employees will be appraised against the following criteria:-
Knowledge
Skills
Experience
Qualifications
Attendance
Disciplinary and Capability record The redundancy selection criteria and the Individual Redundancy Scoring Matrix (Appendix E), form the basis on which employees can be objectively and fairly measured. Managers should use all of the criteria listed in this matrix. However, if one specific criteria is not applicable to those in scope of redundancy, a 0 should be marked in the scoring matrix. The weighting given to the selection criteria reflects their relative importance to the role/service. For example, a post which primarily requires 100% attendance of its staff (e.g. 24/7 services) may weight Attendance as twice or three times as important as the other criteria. It is important that scores are supported by accurate records and managers are required to provide documentary evidence for this purpose. Should the measurement against key selection criteria result in two or more employees being scored equally, a tie breaker will be utilised. The HR Manager will provide advice on the additional criteria, which is to be used as a tie breaker.
As a minimum, two managers should undertake the selection for redundancy exercise including the employee’s Line Manager and normally a Third Tier Officer or higher Each manager will be responsible for independently scoring employees using the agreed criteria and scoring matrix. Once independent assessment has been undertaken, managers will meet to discuss and agree final selections. The assessment must be recorded on the Overall Redundancy Scoring Matrix, (Appendix F), and include rationale for any assessment made, with evidence attached such as annual performance appraisals, 1 to 1 supervision notes, training records and attendance and disciplinary records.
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If there is more than one selection exercise taking place, there should be consistency in the individuals making redundancy assessments to ensure the process remains fair. It is recommended that managers involved in the redundancy selection exercise have direct knowledge of the employee and the work they perform or has access to verified records of the employees’ performance. Individuals involved in redundancy selection exercises will need to be able to objectively justify their decisions and scores in the event of an appeal. When the scores are totalled, the lowest scoring employee(s) from within the pool will be the employee(s) who are selected for redundancy. If this process does not clearly identify the employee(s) to be selected for redundancy, then a selection interview process should be conducted (or repeated) to determine, in greater depth, which employee(s) have the skills and/or knowledge and/or experience that least match those required in the role. If a second interview is required the interview panel may have a different operational manager where practical.
Managers responsible for the selection process should follow the guidance relating to
the key selection criteria detailed below. Knowledge Assessment of knowledge should be based on that which will be required for continuing business/service needs. Allocation of scores should reflect the depth and breadth of knowledge which is relevant to the job. It is important that assessments about knowledge have a direct link to the job role which the individual is being assessed against and not broader organisational knowledge which, whilst valuable, has no bearing on the job role for which redundancies are being considered. Managers using knowledge as redundancy selection criteria should make sure that they have clearly identified what knowledge areas are requirements for the job, so that fair assessments of an individual’s knowledge can be made. Score Definition (will need to be specified by the redundancy selecting manager) 5 Displays the full range of knowledge required for the role 4 Displays the core knowledge required of the post 3 Displays some of the required knowledge, but there are clearly identifiable gaps
in knowledge required for the role 2 Displays limited knowledge in relation to the job role 0 Has insufficient knowledge to operate effectively without close supervision
Skills
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Assessment of skills should be based on those which will be required for continuing business/service needs. Allocation of scores should reflect the range of skills that the individual has which are relevant to the job. It is important that assessments about skills have a direct link to the job role which the individual is being assessed against and not broader skills strengths which, whilst valuable, have no bearing on the job role for which redundancies are being considered. Managers using skills as redundancy selection criteria should make sure that they have clearly identified the full skills set required for a job, so that fair assessments can be made. Score Definition (will need to be specified by the redundancy selecting manager) 5 Displays the full range of skills required for the role
4 Displays a good range of skills required for the post
3 Displays some of the required skills, but there are clearly identifiable gaps when
compared to the skills set required for the role
2 Displays few skills in relation to the job role or has had limited opportunities to
display skills
0 Has insufficient skills to operate effectively without close supervision
Experience Assessment of experience should be based on that which is directly relevant to the continuing needs of the business/service. Allocation of scores should reflect the depth and breadth of experience which is relevant to the job. It is important that assessments about experience have a direct link to the job role which the individual is being assessed against and not on wider experience which, whilst valuable, has no bearing on the job role for which redundancies are being considered. Managers using experience as redundancy selection criteria should make sure that they have clearly identified previous experience which is relevant to the job role and, where appropriate, should indicate the depth and breadth of experience required. Managers should guard against defining timeframes of experience required as this would contravene the Employment Equality (Age) Regulations (2006). Score
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Definition (will need to be specified by the redundancy selecting manager) 5 Has a broad and varied experience which is highly relevant to the role
4 Has a good range of experience, gained in relevant settings, required for the
post
3 Has some good experience, but there are clearly identifiable gaps in experience
2 Has limited previous experience in relation to the job role
0 Has no previous experience of the job role
Qualifications Use of qualifications as a selection criterion should be based on the essential and desirable qualifications or equivalent listed in the person specification for the post. If there are no qualifications required for the post, then this selection criterion should not be used. Score Definition 5 Fully qualified or equivalent as specified in the person specification
4 Part qualified and actively training towards full qualification
3 Part qualified but not actively training towards full qualification
2 Not qualified, not part-qualified but training towards qualification
0 Unqualified
Attendance Use of attendance as a selection criterion will require up to date attendance records. Care should be taken to ensure that any absence attributable to a disability, maternity, paternity, adoption or parental leave, authorised trade union duties, public duties, or authorised absence to serve in the armed forces or emergency services. This list is not exhaustive; if unsure about the type of absence to include please check with HR for further advice and guidance. When using sickness absence as a criterion, Managers should consider both the hours lost due to sickness absence and the number of occasions over which the absence was taken. This will help to determine an individual’s absence pattern. Managers should use the table below to attain an overall score for absence. To ensure fairness, absence for all employees should be counted as a percentage of available working hours. Sickness absence reports can be obtained from the HR Service. The absence period to be considered should be the 12 month period preceding the issuing of the scoring matrix.
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To calculate the percentage absence rate: Percentage absence rate = cumulative hours of absence over 12 month period x 100 52.14 x normal weekly working hours Once scores are calculated, the total figure should be converted into a minus figure and this should be deducted from the employee’s total score. Employees who have a 100% attendance record should automatically be awarded 5 points.
Number of Occasions Score A
% absence rate Score B
1 – 3 occasions in a rolling 12 month period
1 < 2% absence in a rolling 12 month period 1
4 – 6 occasions in a rolling 12 month period
2 2 – 3.9 % absence in a rolling 12 month period
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7 – 9 occasions in a rolling 12 month period
3 4 – 5.9 % absence in a rolling 12 month period
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10 - 15 more occasions in a rolling 12 month period
4 6 – 7.9 % absence in a rolling 12 month period
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More than 15 occasions in a rolling 12 month period
5 8% or more in a rolling 12 month period 5
Overall Score – add score for occasions to score for total hours absence and convert to a minus figure e.g. 1-3 occasions (1 point) + 3% absence (2 points) = 3 points in total = -3
Total Score Add score A + score B
Worked example
An employee who is employed to work 37 hours per week has taken 2 weeks of sick leave in 12 months in one period of absence.
1 occasion scores 1 point
Percentage absence rate = 74 hours x 100 = 3.8% = 2 points 52.14 x 37
Total points score is 1 + 2 = 3 points = -3 as the score to be added to the matrix
An employee who is employed to work 25 hours per week has taken 3 weeks of sick leave in 12 months over 6 separate occasions. 6 occasions scores 2 points
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Percentage rate absence = 75 hours x 100 = 5.75% = 3 points 52.14 x 25
Total points score is 2 + 3 = 5 points = -5 as the score to be added to the matrix
An employee who has a 100 % sickness absence record score 5 points and this is added to the matrix
Disciplinary and Capability
To use disciplinary/capability as a selection criterion, Managers must ensure that all records are up to date and that all warnings that are considered are current. Expired warnings must not be used. The period to be considered for disciplinary and capability should be the 18 month period preceding the issuing of the scoring matrix. Points allocated for outstanding/live warnings should be deducted from the selection matrix score, weighted as shown on the Individual Redundancy Scoring Matrix, (Appendix E). In the case where an employee has more that one live warning for separate disciplinary offences, then scores will be deducted for each separate warning as set out in the table below. For example, -2 for a live oral warning and -3 for a separate live formal written warning will bring the total score for the individual to -5. Employees who have both disciplinary and capability action against them, managers should deduct appropriate scores for each offence. For example, Employee A has one current formal written warning for a disciplinary offence; and is at a stage 1 capability hearing, the manager should deduct a score of -4 for capability and a score of -6 for the disciplinary offence = -10 points in total .
Score Type of Warning 0 -2
No current disciplinary/capability warning Management Instruction
-4 Current oral warning/Stage 1 capability
-6 Current formal written warning/Stage 2 capability
-8 Current final written warning/Stage 3 capability
-10 Current final written warning plus action short of dismissal
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Scrutiny of Selection Process The Overall Redundancy Scoring Matrix (as at Appendix F) will detail the scores for all
of the affected employees clearly identifying the employee(s) who have been selected for redundancy. The individual scoring matrix, any additional evidence that was considered and the rationale for selection for redundancy must be attached to the overall scoring matrix. The selection shall be scrutinised by CLT and HR who will have both authority to challenge the selection if either find cause to do so.
Communicating the Results
Once selection for redundancy decisions are made, Managers should meet with each individual employee included within the scope of the selection pool, to discuss with them the results of the selection exercise, and the specific scoring that the individual employee had received. During this meeting, the Manager should explain to the employee the specific methods/calculations used in the selection process. During this meeting, Managers should give employees the option to challenge any points of accuracy in relation to the scoring exercise, for example, the number of days sickness used. This opportunity will ensure that any inaccuracies in the base data used for selection are addressed. Where errors are identified, the individual employee’s scores should be amended accordingly, and any changes to the selection for redundancy should be amended. Line managers should consult with HR where uncertainties/inaccuracies arise as a result of this meeting. Following employee meetings, confirmed outcomes for the redundancy selection should be provided to the employee in writing. A copy of the individual’s scoring matrix should be included with their written notification of redundancy.
14.3. Skills Matching This option for selection for redundancy lends itself best to situations where a
reorganisation of the business requires a new set of skills, knowledge and experience which may, or may not, currently exist among the affected pool of employees. A reduction in the number of employees may not necessarily be required, but the methods of work and nature of the business are anticipated to change sufficiently for a skills matching exercise to be conducted. Assimilation, via the Test of Difference Assessment, of employees into new jobs has been considered by management and rejected because the content of any job has changed, or there is reasonable belief that employees may not have the critical skills, knowledge and experience necessary for the future, therefore this requires testing.
In accordance with the Council’s recruitment & selection process, the affected
employees will be required to complete a recruitment application form for the post to demonstrate their level of skills, knowledge and experience against the person specification for the post. Subject to the application sufficiently meeting the requirements of the person specification the employee(s) will then undertake a selection assessment, proportionate to the post that enables the full range of essential criteria for the post including attitudes and behaviours to be rigorously assessed. This will involve an interview and may also involve further selection assessment exercises.
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There are five levels of criteria by which the employee’s skills, knowledge and competency are rated against the person specification of the job in question, level 1 being the lowest rating and 5 being the highest. A level 3 achievement across all required skills will achieve a 60% score and thereby be a sufficient match. An example of a skills matching pro forma is attached at Appendix G. The criteria levels are as follows:-
To assist affected employees, advice can be sought from the HR section in regard to completion of application forms e.g. the need to provide sufficient evidence and examples against the Person Specification criteria.
When conducting a skills matching exercise, managers will pay regard to the following
recruitment/selection assessment guidance:- It should be noted that criteria can be weighted to reflect its critical importance. Any employee who is unsuccessful in being appointed to a post will be served notice
in accordance with Section 19. 15 APPOINTMENT TO A NEW STRUCTURE Where there is restructure which does not result in redundancies, or where
redundancies are actioned through restructuring a team to deliver services in an
Level Criteria
5 (highest rating)
Exceeds all criteria.
Displays no negative indicators.
Constantly seeks to improve performance.
Actively displays high potential and willingness to learn and develop within the Council.
4
Meets all criteria and exceeds some.
Displays no negative indicators
Seeks to improve performance
Actively displays willingness to learn and develop within the Council.
3 (average rating)
Meets all criteria.
Seeks to improve performance.
Any negative indicators are able to be addressed by appropriate learning and development interventions.
Demonstrates willingness to learn and develop within the Council when encouraged.
2
Meets some but not all criteria.
Displays several negative indicators.
Does not show ambition to learn and develop within the Council.
1 (lowest rating)
Does not meet most criteria.
Displays no positive indicators.
Has a negative approach towards learning and developing within the Council.
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alternative way employees will be appointed / assimilated to the new structure using the process detailed below.
Appointments will be made to the new structure on a cascading basis, commencing
with appointments to senior posts and moving down the structure. This is to enable managers to be involved in the recruitment of their teams.
Those employees who will be eligible to apply for posts in the new structure are
permanent employees of the Council. An employee who is on a fixed term contract covering a period of maternity or
sickness absence will not typically be eligible to be considered for posts in the new structure in the first instance. It is however expected that they would move to the new structure for the remainder on the fixed term contract until substantive post holder returns. In departments where there are temporary employees, managers are advised to seek advice from Human Resources before commencing the restructuring process.
Employees who are on secondment or acting up will typically be considered on the
basis of their substantive post for the purposes of appointment to the new structure. Where there are employees who are acting up or on secondment, managers should seek advice from Human Resources.
The first stage of the process will be assimilation. The manager will complete a ‘test of difference’ and where the new post is found not to be significantly different the current post holder will qualify for automatic assimilation and be slotted into the post.
Where a number of employees have posts found not to be significantly different, but where the number of posts on the new structure has reduced, appointment will be made by a competitive recruitment process, ring fenced to those eligible employees (i.e. those employees currently engaged in that area of work).
Where there is a post, or posts, in the new structure which clearly result from the merging of two or more posts from the old structure then those existing post holders will be the initial candidates invited to apply for the post(s) and a ring fenced competitive recruitment process will apply. Applications for ring fenced posts should be submitted on the Expression of Interest Form for Ring Fenced Posts as set out in Appendix H.
Once arrangements have been completed as detailed above, there will be a further ring fenced competitive recruitment process where there are vacant posts remaining. This will be restricted to those eligible employees currently engaged within the work area and working at a comparable level and any suitable redeployees from across the organisation. The recruiting manager should check with Human Resources to check if there are any employees at risk for which the post(s) would present suitable alternative employment. Details of these posts will be notified to the appropriate employees and should clearly state which employee groups are eligible to apply. This will include any employees carrying out comparable duties who have not been slotted in under the assimilation process.
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Following the appointment of candidates to each level of the structure, the situation will be reviewed by the manager. Any employee not assigned to a post at that level will be identified and automatically included with those under consideration at the next level. Please note that this is only where the posts available at the next level are a comparable level of work and offer suitable, alternative employment. Where this is not the case, those employees who have not been appointed to a post and there are no suitable alternative posts at lower levels of the structure will be considered at risk.
Following the process of assimilation and then ring fencing, if there are still vacant
posts these will be made available through internal advertisement to other employees across the Council using the usual recruitment processes followed by the usual recruitment processes external to the Council, where required.
When employees are applying through ring fenced recruitment, managers may
request applicants submit expressions of interest as opposed to a full application form. This is at the discretion of the relevant recruiting manager. Redeployees will submit a skills audit form and supporting statement, as per the Redeployment Policy.
16. TERMINATION IN THE INTEREST OF EFFICIENCY
There is no statutory definition of termination “in the interests of the efficient exercise of the employing authority’s functions” usually referred to as “in the interests of the efficiency of the service.” It is for the employer to certify in each case that the employee has ceased employment in the interests of the efficient exercise of the employer’s functions.
The provisions for the Council to effect a termination 'in the interests of the efficiency of the service' will be used in exceptional cases only and will be subject to the agreement of the Chief Executive.
The distinction between efficiency and redundancy is that in the case of redundancy the resultant vacancy is not filled and in cases of efficiency of the service termination, a statutory redundancy payment does not apply.
The circumstances in which employment may be terminated on efficiency grounds are not simply reorganisation/restructuring but are more generally related to health/ability/age or personal/domestic considerations.
Appropriate cases are those involving an employee requesting an element of compassion e.g. the application of the provisions may be justified in a case of intermittent ill-health where a person does not qualify for immediate payment of pension benefits on grounds of permanent incapacity; or where an employee with long service becomes unable to adapt to modern methods or to a change of post and the Council cannot accommodate them elsewhere.
A decision on each case must be reached 'on the grounds of the efficient discharge of the Council's functions' and not merely on the basis of financial savings for the
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Council, this being necessary in order to comply with the appropriate pension regulations (as appropriate).
The Efficiency Termination Compensation Payment There is no statutory requirement to pay compensation if your employment is
terminated on the grounds of efficiency. However, the Council has determined that a severance payment will be made which is calculated using the matrix detailed in the Discretionary Compensation Payments on Cessation of Employment Policy which allows for a 1.33 multiplier if the business case supports this approach.
Both redundancy and efficiency termination attract full pension entitlement for Local
Government Pension Scheme (LGPS) members aged 55 or over.
Where, in the interests of the efficiency of the service, the employer and employee mutually agree upon early retirement, even though the post would need to be replaced, each case will be judged on its merits. Approval of the terms of an early retirement will be determined by the Chief Executive Officer.
17. REDUNDANCY PAY Employee’s dismissed on the grounds of redundancy, with at least two years unbroken
continuous local government service, or service with other specified bodies as set out by the Modification Orders 1999, shall be entitled to a redundancy compensation payment. For further information, refer to the Council’s Discretionary Compensation Payments on Cessation of Employment Policy.
Under s.214 of the Employment Rights Act 1996, receipt of a redundancy payment will
break continuity of employment for future redundancy payment purposes. As such, an employee may not take up employment with another local authority (or other body covered by the Modification Orders 1999) within four weeks of receiving a redundancy compensation payment. In the event that an employee takes up work with another employer covered by the Modification Orders within four weeks following their dismissal, the Council will undertake its obligation to seek to recover the redundancy payment it made to the employee.
18. AT RISK MEETING Individuals may be selected for redundancy either as part of a selection process;
because they are an individual or whole work group who are specifically affected (for instance due to the ending of funding) or as a result of not being successfully appointed to a new structure.
Where an employee is selected for redundancy, they will be provided with written notification that they have been selected and invited to a meeting to officially confirm that they are at risk. Please note that employees cannot be served formal notice of redundancy until the approval decision has been made. Where selection criteria have been applied, the letter will contain a copy of the form detailing the scores for the
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individual employee. The employee will be provided with at least 5 working days’ notice of the date of the meeting and will be notified of their right to be accompanied at the meeting by a Trade Union representative or work colleague.
The meeting will be attended by the relevant Third Tier Officer or Service Director and also a representative from Human Resources. It will be confirmed to the employee that they have been selected for redundancy and that it is the Council’s intention to terminate their employment on the grounds of redundancy and confirm that the employee will be dismissed at the end of their statutory notice period, if redeployment is not successful. The meeting signifies the commencement of the statutory notice period. This will be
At the meeting, the HR representative will also explain the redeployment process.
Following the meeting the employee will be entered onto the Redeployment Register and will be supported through the redeployment process (please refer to the Redeployment Policy for more information) by their manager and Human Resources.
In accordance with the Employment Rights Act 1996, an employee who is served
notice of dismissal on grounds of redundancy or interests of efficiency, will be provided with a written estimate of the benefits to which they may be entitled. The estimate will detail how the amount of their redundancy compensation payment has been calculated, including any agreed under interests of efficiency. The outcome of the meeting will be confirmed in writing, stating the reason for the dismissal and detailing the employee’s right of appeal.
19. NOTICE PERIODS An employee who has been selected for redundancy or interests of efficiency will be
entitled to their statutory period of notice or contractual period of notice if this is longer, up to a maximum of 12 weeks.
An employee’s unbroken local government service shall be taken into account when
calculating a notice period. Service with other specified bodies as set out by the Modification Orders 1999 shall also be taken into account.
20. RIGHT OF APPEAL
An appeal against the decision to dismiss on the grounds of redundancy must be made in writing to the HR Manager within 10 working days of the date of the letter of the notification of the outcome of the At Risk Meeting.
Appeal meetings will be organised as soon as is reasonably possible following the receipt of the appeal. Appealing will not delay the notice period, instead the appeal will be heard during the notice period and will run in parallel to the redeployment process.
Appeals against selection only for compulsory redundancy or efficiency are heard by a member of the Corporate Leadership Team who has not previously been involved in the process.
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Appeals submitted by a member of the Corporate Leadership Team will be heard by the Chief Officers Employment Committee.
Appeals against redundancy will be heard by a member of the Corporate Leadership
Team. Appeals submitted by a member of the Corporate Leadership Team will be heard by the Chief Officers Employment Committee.
The outcome of an appeal should be confirmed as soon as is practicable and within 5
working days of the meeting. No further internal right of appeal exists. Reference should be made to the Appeals Procedure for further information on the
process for conducting appeals. 21. REDEPLOYMENT
The Council will offer support to employees who have been served notice or are at risk
of being served notice of dismissal on the grounds of redundancy. This may take the form of:
support with interviewing skills
CV development and skills identification
notification of potential vacancies/redeployment opportunities at an early stage l
In order to avoid compulsory redundancies, the Council will endeavour to seek and offer suitable alternative employment to employees who are on notice of dismissal on grounds of redundancy.
The Council will assist the employee in the search for suitable alternative employment
by conducting a skills assessment to identify potential matches within the Council and associated employers.
Whether a job is suitable alternative employment will depend on several things, including:-
how close the work is to the employee’s current job,
the terms of the job being offered,
the employee’s skills, abilities, and circumstances in relation to the job,
the pay (including benefits), status, hours of the job. 22. STATUTORY TRIAL PERIOD In accordance with the 1996 Act, if a redundant employee accepts employment under
a new or renewed contract of employment and the terms and conditions are different in any way from the old contract, they are entitled to a four week trial period in their new or renewed position. This is referred to as the “statutory trial period.”
The trial period begins at the end of the employee’s employment under the previous
contract and ends after either:-
i. four weeks has passed from the date on which the employee started work under the new or renewed contract, or
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ii. a longer period that was agreed for the purpose of retraining the employee. The period of four weeks refers to four calendar weeks and does not take account of
holidays, shutdowns etc. The period can only be extended if the employee needs training for the new work.
The training agreement must be in writing, specify the date on which the training will end and the terms and conditions that will apply after that period.
If the new work is not suitable there can be further trial periods for other jobs, but each trial period is limited to four weeks (plus training time).
The redundancy rights of the employee who accept a trial period are crystallised as at
the termination of the original employment.
Where the trial period has been completed and the employee continues to work after the trial period ends, the employee:-
i. has accepted the alternative employment (whether it is suitable or not), ii. is not redundant (and therefore not entitled to statutory redundancy pay), iii. has their continuous employment preserved.
The statutory trial period does not debar the Council from offering non-statutory trial
periods before the original contract of employment ends, still preserving the employee’s right to a statutory trial period.
23. PAY PROTECTION The Pay Protection Policy in place at the time that the employee is appointed to the
new post will apply in terms of time scales and conditions of the protection, including length of protection.
Pay protection will only apply where the post is considered a reasonable alternative
and this will typically be within one grade. For example, where the employee’s current post is Grade 4 redeployment to a post of less than Grade 3 would not be considered a reasonable alternative.
24. TIME OFF TO LOOK FOR WORK Employees who are under notice of redundancy are legally entitled reasonable time off
to look for work or retrain. This must be agreed with their line manager. 25. SPECIAL CONSIDERATIONS Attendance at meetings In individual meetings held under the Redundancy Policy, where an employee does
not, or cannot, attend a meeting in person, it is reasonable to make arrangements for another date to be set that is within seven days of the original proposed meeting date.
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If the employee is persistently unable or unwilling to attend alternative dates, the Council may choose to hold the meeting in the absence of the employee. However, all cases will be reviewed on an individual basis. In these circumstances, a written submission by the employee or attendance by a Trade Union representative or work colleague without the employee present will also be acceptable. Evidence would then be considered in a way that reflects the normal procedure outlined in this policy as closely as possible. Any decisions would be notified to the employee in writing and, in cases where redundancy is confirmed, the right of appeal will be offered.
Sickness Absence during the Procedure Where an employee who is at risk of redundancy is absent from work due to sickness
the manager must make every effort to include them in the consultation and redundancy process, including sending any information provided to employees as part of the consultation process and keeping them informed of ongoing actions.
Managers should seek advice from Human Resources in these circumstances
regarding appropriate processes to include them. Redundancy during Maternity Leave When dealing with potential redundancy situations, managers must ensure that all
employees, including those who may be absent from work due to maternity leave, are consulted and kept informed and every appropriate effort should be made to contact absent employees to make them aware of the procedure.
Redundancy during maternity leave will end the contractual obligations to both
maternity pay and the right to return. Statutory maternity payments are not affected and continue until the end of the maternity pay period.
Managers should bear in mind that it is automatically an unfair dismissal to select a
woman for redundancy on the grounds of her pregnancy.
There is specific legislation relating to employees who are on maternity leave and redundancy situations. An employee who is made redundant while on maternity leave is entitled to be offered (not just invited to apply for), a suitable available vacancy with the Council. An alternative vacancy must be both suitable and appropriate in the circumstances, and the terms and conditions must not be "substantially less favourable".
Managers should therefore seek guidance from Human Resources where employees who are on maternity are subject to redundancy procedures.
26. OFFER OF EMPLOYMENT WITH A BODY COVERED BY THE LOCAL
MODIFICATION ORDER. If an employee under notice of redundancy, accepts a job offer from another Local
Authority or a body specified in Schedule 2 of the Redundancy Payments (Continuity
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of Employment in Local Government) (Modification) Order 1999, before their last day of service, the dismissal will no longer constitute a dismissal by reason of redundancy and consequently, no redundancy payment will be made. This only applies where the relevant body makes the offer of a new job before the end of the old contract and the employee accepts the post and starts employment at the new employer within four weeks of the date of redundancy. If the termination date is on Friday, Saturday or Sunday the 4 weeks begins on the following Monday In this event statutory continuity of employment will be preserved for the purposes of calculating any future entitlement to redundancy payments that may arise with the new employer. If an employee unreasonably refuses an offer, of what the Council views as a suitable alternative employment, they may forfeit their right to a redundancy payment.
27. USEFUL DOCUMENTS AND ADDITIONAL INFORMATION
Discretionary Compensation Payments on Cessation of Employment Policy
Redeployment Policy
Appeals Procedure
Pay Protection Policy
Implementation date: April 2016 Review date: As required or due to legislative changes Originator: Emma Salmon – Senior HR Adviser Last amended: March 2016