what is a redundancy?

What is a Redundancy?

A redundancy is a potentially fair reason for dismissal (Article 130 (2)(c) of the Employment Rights (NI) Order 1996). Selection for redundancy will be automatically unfair for a number of reasons including trade union membership or because the employee chose to assert a statutory right. It may also be unfair if the applicable redundancy procedures have not been strictly adhered to and therefore have been breached.

Generally a redundancy will result in an overall reduction in staffing numbers and there will be no replacement of the job loss except in situations involving a curricular redundancy where staff replacement into a different curricular area is permissible.

What Must Boards of Governors do in Contemplating Redundancies?For the last number of years Boards of Governors have been faced with the unenviable task of advising their staff of the need for redundancies.

Redundancies are effected in schools because of:1. falling pupil enrolments (at pupil intake level);2. excessive staffing at a specific curricular level (possibly due to reduced

uptake of the curricular area by the pupils);3. budgetary deficits relevant to the whole school.

Prior to any announcements of impending redundancies a Board of Governors will hold a meeting to discuss the possible need for redundancies and mechanisms for avoiding them. Then if necessary arrive at a decision regarding the number of redundancies envisaged. At the same time a committee will be set up which will be responsible for identifying staff for redundancy as well as a committee to be responsible for hearing any appeals against selection for redundancy. These committee members must take no further part in the DENI Redundancy Procedure until and if their involvement is appropriate. The redundancy process must be carried out in a fair manner within the parameters of the TNC ‘Guidelines for Handling Teacher Redundancies’.

If the employer is not able to demonstrate that the process has been carried out in a fair manner and providing there are no overt signs of conduct which mars its fairness (adhering to the detail of the ‘Procedure for Handling Teacher Redundancies’) then the teacher could ultimately bring a claim for unfair dismissal and/or wrongful dismissal on the grounds that the official contractual redundancy policy has been breached. Boards of Governors are required to consult with staff about the proposed redundancies (which detail the number of redundancies, may specify the curricular areas they are identified in and refer to the reasons for the redundancies.) Ultimately it is sufficient for the employer to show that the system of selection adopted was fairly administered.

Notifying Teacher UnionsAt the same time, Boards of Governors must consult with all recognised teacher unions and will advise both staff and unions of measures that will be taken by the employer to avoid the need for enforced redundancies.

National Association of Schoolmasters Union of Women TeachersThe largest union representing teachers and principals in Northern Ireland and throughout the UK

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Notifying Staff of Possible RedundanciesThis notification will normally take the form of a notice on the staffroom notice board. The procedure will clearly have been breached if all staff are not advised in writing including staff off on maternity leave, career breaks, sick leave, etc.

Mechanisms available for Avoiding Enforced RedundanciesWithin the ambit of the Procedure for Handling Teacher Redundancies employers must also demonstrate that they have taken all reasonable measures to avoid enforced redundancies. Redundancies can be avoided (sometimes temporarily) by:

a. natural wastage – e.g. age retirement. Teachers can access their unabated pension from the age of 60 – providing they were employed prior to 2007;

b. career break/secondment – from one to five years’ duration and at the discretion of the employer;

c. job share/part-time working – voluntary alternative working arrangements;(= flexible working)

d. voluntary redundancy (where an individual volunteers for premature retirement in exchange for being able to access existing accrued pension benefits, see Pension and Redundancy section).

Teachers who started before April 2007 will not be able to access a pension until the age of 60 – after April 2007 the age of 65.

Teachers wishing to avail of a voluntary redundancy opportunity will normally need to put their request in writing to the Chair of the Board of Governors and should only consider accepting an offer on the understanding that the package is acceptable to them. Teachers can obtain details of the accrued pensionable service from Teachers Pension Branch (DENI), Londonderry.

The number of interested parties for a voluntary redundancy usually exceeds the number of redundancies determined. The employer assumes the responsibility for allocating the offer based on criteria drawn up which take into consideration the ‘needs of the school’. Teachers have no automatic right to access a voluntary redundancy. The employer only has to demonstrate that the selection criteria was applied in a fair and consistent manner within the ambit of the criteria drawn up by the employer and providing the procedure for handling teacher redundancies is not breached.

Transferred RedundancyThis option is normally operated within the controlled and CCMS sector. It is not normally operated within the Voluntary Grammar sector.

Transferred redundancy is when a teacher volunteers to be considered for a redundancy to save the job of another teacher in another school who is being made redundant. The teacher needs to make an application to be considered to the Chair of the Board of Governors of his/her own school which should be copied to the Employing Authority (CCMS/ELB).


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The Board of Governors makes the final discretionary determination regarding whether the teacher being made redundant in the other school is suitable for their staff.

Intra-Education and Library Boards, Inter-Education and Library Boards, and Education and Library Boards/CCMS transfers increase the opportunity for transferred redundancy access.

The Board of Governors are required to await a response from the teacher unions prior to progressing any proposed redundancies. Normally the unions will seek the disclosure of particular information pertaining to the staffing structure within the school. It is the responsibility of the teacher unions to satisfy themselves that the redundancies in the school are justified. The board of governors will normally have a second meeting to consider the union responses and to consider the available options in terms of whether redundancies can be obviated.

If redundancies are unavoidable the Board of Governors will put in place steps to enforce a redundancy (compulsory redundancy). This involves making a determination as to which teacher will be made redundant – based on consistently, objectively and fairly applied criteria. ‘Last in, first out’ (LIFO) has been considered in the past to be a fair criteria but it could be discriminatory on grounds of sex or age. It is suggested that it should only be used as a final “tie-break” criterion, subject to ensuring that it can be seen to be none discriminatory on grounds of gender, ethnic origin, disability, sexuality, religion or age. Schools apply other criteria in ‘the permanent interests of the school’ – which they must base on comprehensive, curriculum and staffing audits. The determination will be made in a general full Board of Governors meeting and the teacher so informed in writing.

Promotional status does not in itself render a redundancy avoidable. Indeed if this was adopted as a criterion, it would be open to challenge by the unions.

If the teacher feels that the determination is unfair or that procedures have not been properly followed the teacher should immediately consult with their NASUWT Local Secretary, NASUWT Caseworker or the Regional Centre with a view to making representations to an appeals committee within the Board of Governors. Challenges against any redundancy determinations are generally won on the grounds of procedure having not been properly adhered to or the selection criteria not having been fairly and objectively applied.

If the Board of Governors appeal committee decides not to overturn the original determination the aggrieved teacher should, through the auspices of NASUWT (Northern Ireland), lodge an appeal with the Labour Relations Agency for an independent hearing.

This will require careful case preparation and presentation on the part of a full-time NASUWT official from the Northern Ireland Regional Centre. At each stage, time limits are strictly applied. If either at the representation stage or independent appeal stage the original determination is overturned, the Board of Governors are required to kick-start the whole process over again and must ensure that all procedures are completed within the deadline date of 30 April. If procedures are not completed prior to 30 April the redundancy process is stalled until the following year. Dismissals on the grounds of redundancy outside this period may be deemed to be unfair, on the grounds that it denies the redundant teacher appropriate time to secure further teaching posts.


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Redundancy and MaternityIf a teacher is made redundant during ordinary maternity leave or during additional maternity leave, regulation 10 of the Maternal and Paternal Leave Regulations 1999 states that a woman on maternity leave must be offered any suitable alternative job that is available. You have the right to be offered any suitable alternative job that is available. You have the right to be offered any suitable alternative job before it is offered to your colleagues and you are not expected to have to apply for it during maternity leave. If a suitable alternative job exists and you are not offered it you may be able to claim unfair dismissal and sex discrimination.

Benefit EntitlementTeachers, either full-time or part-time employed on a continuous basis (without breaks in service) for two or more years, have an entitlement to a redundancy compensation payment and have an entitlement to be considered within an internal trawl for redeployment.

To meet this two-year continuous employment criterion teachers need to be employed from September in school year 1 to 31 August in school year 2, paid on a full-time/part-time salary basis (not daily paid) and paid for the holiday periods. It should also be remembered that should you be on a fixed-term contract for two or more years and it ends without being renewed, this counts as dismissal and you may be due a redundancy payment.

Teachers made redundant on 31 August and re-employed with a new employer on 1 September will have no right to a redundancy payment.

The same applies to teachers accessing voluntary redundancy as of 31 August. Teachers may not take up re-employment (as in subbing) with a new employer (new school) until a period of four weeks has elapsed (usually 1 October) otherwise their entitlement to a redundancy payment is revoked.

What are the Redundancy Payments?The amount of the lump-sum redundancy compensation payment depends on:

length of continuous employment; how many years of continuous service relative to a particular age band (see

below); amount of weekly pay (in the final year).

For each complete year of continuous service up to age 21, half a week’s pay.For each complete year of continuous service between age 22 and 41, one week’s pay.For each complete year of continuous service between the ages of 41 and 64 you will receive 1½ weeks’ pay.Redundancy payment is based on continuous service up to termination of employment. The maximum redundancy payment is based on the last 20 calendar years of continuous service. Length of continuous service is counted backwards from the ‘relevant date’. A break in service (period when the teacher was not in employment) within the 20 years reduces the compensation payment.


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Calculating your redundancy payment (easy approach)

Gross Salary----------------- x F

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The value of F is obtained by transposing information from the ready reckoner (see page 6) as follows:

Read off employee’s age and number of complete years of service. The table will then show how many weeks’ pay (value F in the equation above) the employee is entitled to.

Pension and Redundancy Payment AccessProviding you are 60 years of age or over and have contributed to the Northern Ireland Teachers Superannuation Scheme and access a voluntary or a transferred redundancy (or are made compulsory redundant) you will be entitled to:

a pension (taxable); a pension lump sum (non-taxable); a redundancy compensation payment (non-taxable).

A teacher under 60, and compulsorily redundant, with at least two years continuous service will be entitled to a redundancy compensation payment only.

The pension becomes index-linked (inflation proofed) at age of 55.

Teachers’ Pension Branch will provide details of Total Pensionable Service.

Calculation of BenefitsIf you were a member of the scheme before 1 April 2007 the method of calculating benefits is as follows;

Pension = (service x average salary)* /80

The lump sum is x3 the pension.

If you were a member of the scheme before 1 April 2007 and have service on or after that date you can convert, ‘commute’ part of your pension to receive a lump sum up to 25% of your fund value.

The formula for calculating the maximum amount of lump sum benefits that can be paid is as follows:

(pension x 20) + (lump sum x20/12)/4.6667

If you were a member of the scheme on or after 1 April 2007 your benefits will consist of an annual pension based on reckonable service and average salary. It will be:


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Pension = (service x average salary)/60

You can commute part of your pension to a lump sum and the formula for calculating the maximum amount of lump sum benefits that can be paid is as follows:

(pension x20)/4.6667

The commutation formula represents 25% of your fund value. You can choose up to 25% maximum to be paid as a lump sum. In doing so there is a consequent reduction in the value of the annual pension. For each £ of pension commuted there will be £12 of lump sum paid.

*Average SalaryIf you left service before 1 April 2007 your average salary is:

The highest amount of full salary for any consecutive 365 days of reckonable service, whether continuous or not, during the last three years of reckonable service.

Reckonable service is those years and days that count towards your pension benefits.

If you were in service before 1 April 2007 but retire before 31 March 2009 your averable salary is the best of the following:

The highest amount of full salary for any consecutive 365 days of reckonable service, whether continuous or not, during the last three years of reckonable service.

The salaries for the last 10 calendar years are increased using the retail Prices Index (RPI). The average of the best consecutive three years’ re-valued salaries in those 10 calendar years is used.

The Pensionable Salary received in the last 12 months before the date of retirement.

If you retire after 31 March 2009 your average salary is the better of the following:

The salaries for the last 10 calendar years are increased to current day value using the RPI. The average of the best consecutive three years re-valued salaries in those 10 calendar years is used.

The pensionable salary received in the last 12 months before the date of retirement.

NBThe salary used to calculate your retirement benefits may be restricted if your salary is increased by more than 10% plus the standard increase during any financial year in your last three years of pensionable employment before retirement and your last year’s salary is used as the average salary and your employer is not prepared to meet the costs of the difference in benefits.

This also applies where the best year’s salary is your final three years of service and is used as the average salary. If your employer pays the additional contributions, you will receive benefits calculated on the unrestricted salary.

It is not possible to anticipate whether this provision might apply in any individual’s case (and, if so what the impact might be) in advance of retirement. It is only at


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retirement that DENI will be able to determine the teacher’s average salary period and assess their salary progression against standard pay awards during that period. If you are approaching retirement and you think that it is possible that your average salary might be affected you should speak to your employer.


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Ready Reckoner

Service (years) 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Age (years)

20 1 1 1 1 -21 1 1 ½ 1 ½ 1 ½ 1 ½ -22 1 1 1 ½ 2 2 2 -23 1 ½ 2 2 ½ 3 3 3 3 -24 2 2 ½ 3 3 ½ 4 4 4 4 -

25 2 3 3 ½ 4 4 ½ 5 5 5 5 -26 2 3 4 4 ½ 5 5 ½ 6 6 6 6 -27 2 3 4 5 5 ½ 6 6 ½ 7 7 7 7 -28 2 3 4 5 6 6 ½ 7 7 ½ 8 8 8 8 -29 2 3 4 5 6 7 7 ½ 8 8 ½ 9 9 9 9 -

30 2 3 4 5 6 7 8 8 ½ 9 9 ½ 10 10 10 10 -31 2 3 4 5 6 7 8 9 9 ½ 10 10 ½ 11 11 11 11 -32 2 3 4 5 6 7 8 9 10 10 ½ 11 11 ½ 12 12 12 12 -33 2 3 4 5 6 7 8 9 10 11 11 ½ 12 12 ½ 13 13 13 13 -34 2 3 4 5 6 7 8 9 10 11 12 12 ½ 13 13 ½ 14 14 14 14 -

35 2 3 4 5 6 7 8 9 10 11 12 13 13 ½ 14 14 ½ 15 15 15 1536 2 3 4 5 6 7 8 9 10 11 12 13 14 14 ½ 15 15 ½ 16 16 1637 2 3 4 5 6 7 8 9 10 11 12 13 14 15 15 ½ 16 16 ½ 17 1738 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 16 ½ 17 17 ½ 1839 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 17 ½ 18 18 ½

40 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 18 ½ 1941 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 19 ½42 2 ½ 3 ½ 4 ½ 5 ½ 6 ½ 7 ½ 8 ½ 9 ½ 10 ½ 11 ½ 12 ½ 13 ½ 14 ½ 15 ½ 16 ½ 17 ½ 18 ½ 19 ½ 20 ½43 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 2144 3 4 ½ 5 ½ 6 ½ 7 ½ 8 ½ 9 ½ 10 ½ 11 ½ 12 ½ 13 ½ 14 ½ 15 ½ 16 ½ 17 ½ 18 ½ 19 ½ 20 ½ 21 ½

Cont’d.


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Ready reckoner

Service (years) 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Age (years)

45 3 4 ½ 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 2146 3 4 ½ 6 7 ½ 8 ½ 9 ½ 10 ½ 11 ½ 12 ½ 13 ½ 14 ½ 15 ½ 16 ½ 17 ½ 18 ½ 19 ½ 20 ½ 21 ½ 22 ½47 3 4 ½ 6 7 ½ 9 10 11 12 13 14 15 16 17 18 19 20 21 22 2348 3 4 ½ 6 7 ½ 9 10 ½ 11 ½ 12 ½ 13 ½ 14 ½ 15 ½ 16 ½ 17 ½ 18 ½ 19 ½ 20 ½ 21 ½ 22 ½ 23 ½49 3 4 ½ 6 7 ½ 9 10 ½ 12 13 14 15 16 17 18 19 20 21 22 23 24

50 3 4 ½ 6 7 ½ 9 10 ½ 12 13 ½ 14 ½ 15 ½ 16 ½ 17 ½ 18 ½ 19 ½ 20 ½ 21 ½ 22 ½ 23 ½ 24 ½51 3 4 ½ 6 7 ½ 9 10 ½ 12 13 ½ 15 16 17 18 19 20 21 22 23 24 2552 3 4 ½ 6 7 ½ 9 10 ½ 12 13 ½ 15 16 ½ 17 ½ 18 ½ 19 ½ 20 ½ 21 ½ 22 ½ 23 ½ 24 ½ 25 ½53 3 4 ½ 6 7 ½ 9 10 ½ 12 13 ½ 15 16 ½ 18 19 20 21 22 23 24 25 2654 3 4 ½ 6 7 ½ 9 10 ½ 12 13 ½ 15 16 ½ 18 19 ½ 20 ½ 21 ½ 22 ½ 23 ½ 24 ½ 25 ½ 26 ½

55 3 4 ½ 6 7 ½ 9 10 ½ 12 13 ½ 15 16 ½ 18 19 ½ 21 22 23 24 25 26 2756 3 4 ½ 6 7 ½ 9 10 ½ 12 13 ½ 15 16 ½ 18 19 ½ 21 22 ½ 23 ½ 24 ½ 25 ½ 26 ½ 27 ½57 3 4 ½ 6 7 ½ 9 10 ½ 12 13 ½ 15 16 ½ 18 19 ½ 21 22 ½ 24 25 26 27 2858 3 4 ½ 6 7 ½ 9 10 ½ 12 13 ½ 15 16 ½ 18 19 ½ 21 22 ½ 24 25 ½ 26 ½ 27 ½ 28 ½59 3 4 ½ 6 7 ½ 9 10 ½ 12 13 ½ 15 16 ½ 18 19 ½ 21 22 ½ 24 25 ½ 27 28 29

60 3 4 ½ 6 7 ½ 9 10 ½ 12 13 ½ 15 16 ½ 18 19 ½ 21 22 ½ 24 25 ½ 27 28 ½ 29 ½61 3 4 ½ 6 7 ½ 9 10 ½ 12 13 ½ 15 16 ½ 18 19 ½ 21 22 ½ 24 25 ½ 27 28 ½ 3062 3 4 ½ 6 7 ½ 9 10 ½ 12 13 ½ 15 16 ½ 18 19 ½ 21 22 ½ 24 25 ½ 27 28 ½ 3063 3 4 ½ 6 7 ½ 9 10 ½ 12 13 ½ 15 16 ½ 18 19 ½ 21 22 ½ 24 25 ½ 27 28 ½ 3064 3 4 ½ 6 7 ½ 9 10 ½ 12 13 ½ 15 16 ½ 18 19 ½ 21 22 ½ 24 25 ½ 27 28 ½ 30


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what is a redundancy?

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