COMMITTEE: HUMAN RESOURCES REF NO: HR/13/47 DATE: 12 MARCH 2014 ORGANISATIONAL CHANGE MANAGEMENT AND REDEPLOYMENT POLICY

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1 10 COMMITTEE: HUMAN RESOURCES REF NO: HR/13/47 DATE: 12 MARCH 2014 SUBJECT: PORTFOLIO HOLDER: HEAD OF SERVICE: ORGANISATIONAL CHANGE MANAGEMENT AND REDEPLOYMENT POLICY CLLR MARTIN COOK DAVID FIELD Short description of report content and the decision requested: A number of key HR policies have been reviewed or written to align with the implementation of Single Status Harmonisation. HR Committee are asked to approve the changes to the Organisational Change Management and Redeployment Policy. List of Appendices included in this report: a) Appendix 1 Current Organisational Change Management Policy (incorporating Redeployment) Policy b) Appendix 2 New Organisational change management and Redeployment Policy c) Appendix 3 Consultation comments This report has been prepared by Victoria Finch HR Assistant Operations Manager Advisory Services. Tel: victoria.finch@ipswich.gov.uk This report was prepared after consultation with: The Chief Operating Officer, Heads of Service, Operations Managers, Unison, Unite and Ucatt. The following policies form a context to this report: (all relevant policies must also be referred to in the body of the report) Organisational Change Management (incorporating Redeployment) Policy (attached as Appendix 1). Template: Nov2013

2 LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW (papers relied on to write the report but which are not published and do not contain exempt information) 1. OTHER HELPFUL PAPERS (papers which the report author considers might be helpful this might include published material) 1. Current Organisational Change Management Policy

3 1. Introduction 1.1 This report outlines the rationale for reviewing and updating the Organisational Change Management (incorporating Redeployment) Policy prior to the implementation of Single Status Harmonisation. 2. Background 2.1 A work-stream was established as part of the implementation of Single Status Harmonisation to identify all HR and employee related policies and arrange for the review or introduction of those felt most critical to the organisation going forward at the point of implementation. 2.2 Joint Consultative Group on 7 th November 2013 established a Policy Sub Group to consult on the high number of policies and procedures identified and this group met over several weeks until January 16 th The Sub Group jointly prioritised the initial list of policies into 5 priority groupings and consulted on those policies and procedures identified as priority 1 and 2; some 20 policies and procedures. 2.3 Due to the limited timeframe only priority 1 policies are being put forward for consideration and approval at this stage. The remaining policies will be progressed from April 2014 onwards. The 9 policies identified for approval prior to April 1 st 2014 are: Absence Management Policy; Career Grade Policy (new policy); Disciplinary Policy; Flexible Retirement Policy (new policy - Appendix 2); Managing Performance Policy (ex-capability); Organisational Change Management and Redeployment Policy; Performance Development and Review Policy (ex -Appraisal); Recruitment and Selection Policy; Volunteering Policy (new policy); 2.4 It should also be noted that 2 other key HR policies have also been recently approved: Market Supplement Policy; Voluntary Redundancy/Voluntary Severance/Early Retirement Policy; 3. Context and key principles 3.1 Ipswich Borough Council recognises that implementing change is a difficult and complex process to manage, and that the impact of change on individuals may be considerable.

4 3.2 The Policy sets out how the Council will deal with the issues that arise when organisational change affects employees, for example: Changing the way in which work is done by introducing new ways of working or changing shift patterns or business location; Reducing the number of employees to achieve cost savings and to improve efficiencies which can result in the redeployment of some employees into new roles and for others ending of their employment through redundancy; 3.3 The Council wants to ensure that the effects of organisational change on employees is handled sensitively; that appropriate skills, knowledge and experience are retained and that recruitment, training and redundancy costs are minimised wherever possible. 4. Consultations 4.1 Consultation regarding the Organisational Change Management and Redeployment Policy has been carried out with the Chief Executive, the Chief Operating Officer, Heads of Service, Operational Managers and all 3 recognised Unions. 4.2 Consultation comments received from the Unions are attached at Appendix 3 together with a management response. 4.3 Comments received from managers have been reviewed and where appropriate the policy has been update/amended. 5. Relevant Policies 5.1 Organisational Change Management (incorporating Redeployment ) Policy. 6. Risk Management Risk Description Consequence of risk Risk Controls Probability of risk occurring taking account of controls (scale 1-6) 1 almost impossible 6 very high Impact of risk, if it occurred taking account of actions (scale 1 negligible; 4 catastrophic) Actions to mitigate risk Anxiety associated with redundancy/ redeployment Increase in absence Monitor absence alongside introduction of new policy 3 2 Adopt new policy and took kit for Managers and Employees Not treating Legal Procedural 3 3 Adopt new

5 employees fairly Inability to effectively manage change Loss of experience, skills and knowledge if the process is poorly managed challenges and or dissatisfied employees Claims of unfair dismissal Will adversely affect service delivery guidance and policy in place Procedural guidance and policy in place Procedural guidance and policy in place policy and tool kit for Managers and Employees 3 3 The Policy creates the framework for dealing with such matters 3 2 The Policy creates the framework for dealing with such matters. 7. Environmental Impact Assessment 7.1 There are no environmental impacts associated with the review of the Organisational Change Management and Redeployment Policy. 8. Equalities and Diversity Implications 8.1 Under the general equality duty as set out in the Equality Act 2010, when reviewing practices and procedures the Council is required to have due regard to the need to eliminate unlawful discrimination, harassment and victimisation and other conduct prohibited by the Act as well as advancing equality of opportunity and fostering good relations between people who share a protected characteristic and those who do not. 8.2 Assessing the potential impact on equality of proposed changes to policies, procedures and practices is one of the key ways in which public authorities can demonstrate that they have had due regard to the aims of the equality duty. 8.3 Ipswich Borough Council is committed to taking effective action to eliminate discrimination and to promote equality of opportunity and diversity in all that it does both as an employer and as a service provider. 8.4 The Organisational Change Management and Redeployment Policy is open to all employees and positively encourages due regard to all employees with protected characteristics. 9. Financial Considerations 9.1 There are no direct financial considerations associated with this Policy other than the costs associated with redundancy dismissal,

6 redeployment and salary protection which will be determined on a case by case basis. 9.2 The Voluntary Redundancy/Voluntary Severance/Early Retirement Policy sets out the redundancy payment criteria which should be applied in the case of redundancy. 9.3 The local government pension scheme as administered by Suffolk County Council sets out the financial criteria to be applied for those employees aged between who are declared redundant and gain access to pension. 10. Legal Considerations 10.1 The Council as the employer has a number of duties to comply with that are relevant considerations to the proposals set out in this report The Equalities act 2010 has also imposed a duty to take steps to remove the gender pay gap and additional duties have been imposed in relation to adjustments that might be necessary to accommodate workers with protected characteristics The Part-time Workers (Prevention of Less Favorable Treatment) Regulations 2000 provide that part-time workers are not allowed to be treated less favorably in their contractual terms and conditions than comparable full-timers unless the treatment can be objectively justified Employees with two years service have the right not to be unfairly dismissed. Those with more than 2 years service are entitled to a redundancy payment The Council has adopted a number of human resources policies to deal with the requirements of employment legislation and provided those policies are complied with there should be no other legal issues arising. 11. Performance Monitoring 11.1 The policy will be continuously reviewed and monitored. Any significant change to legislation affecting the application of this policy will result in an update being provided to HR committee for review. As well as any changes that will improve the effectiveness of the policy. 12. Conclusions 12.1 The past decade or so has seen significant development in employment law within the UK. Organisations are now faced with increasing scrutiny in terms of how they effectively manage such developments through the introduction of related policy and procedures.

7 12.2 The review and re-launch of the Organisational Change Management and Redeployment Policy will help to ensure all employees affected by organisational change are treated in a fair, consistent, legally compliant and sensitive manner. 13. Recommendations 13.1 That Human Resources Committee adopts the Organisational Change Management and Redeployment Policy set out in appendix That any subsequent minor changes to the policy can be made by the HR Operations Manager in consultation with the HR Portfolio Holder, Head of Resource Management, Operations Manager Legal Services and relevant Unions That amendments to the Policy required by changes in legislation can be made by the Head of Resource Management. Any such changes to be reported to the HR Portfolio Holder and relevant Unions.