Managers How to Guide.. Redundancy Policy Policy statement Scope How to use this document Hampshire County Council seeks to maintain security of employment as far as possible. However circumstances may arise which necessitate staffing reductions. In the event of this, the Council will make all reasonable efforts to avoid redundancy and seek redeployment. The policy defines the steps the Council will take to ensure redundancies are managed consistently and fairly. All employees employed by a Hampshire County Council department (i.e. outside of schools) on the following terms and conditions; EHCC Soulbury Teachers This document is not part of the formal policy. Instead it provides additional information to help you as a manager in the practical day to day application of the policy. It is expected that you will have an understanding of the Redundancy Policy prior to using this guide.
Content Roles and responsibilities... 3 Policy stages... 5 How to develop the business plan... 5 How to manage the consultation process... 5 Why?... 5 Who with?... 6 How?... 6 How long?... 7 How to manage the outcome of consultation... 8 How to select employees for voluntary redundancy... 8 How to accept an application for voluntary redundancy... 9 How to reject an application for voluntary redundancy... 9 How to select employees for compulsory redundancy competitive selection. 9 How to assess those absent from the workplace... 11 How to communicate a successful outcome... 11 How to communicate an unsuccessful outcome... 11 How to invite an employee to a formal meeting... 12 Who chairs the formal meeting... 12 Right to be accompanied... 12 Alternative date... 12 How to run a formal meeting... 12 How to confirm the decision... 13 How to manage notice periods and annual leave... 13 Redundancy pay... 14 Redeployment... 14 Time off for redundant employees... 14 Right of appeal... 14 How to invite an employee to an appeal meeting... 15 Who chairs the appeal meeting... 15 How to run an appeal meeting... 15 Possible outcomes... 15 How to confirm the appeal decision... 16 Managers How to Guide Redundancy V3 28.10.2014 Page 2 of 18
Roles and responsibilities As the manager you are responsible for: identifying situations giving rise to redundancy and managing them appropriately informing HR Operations when redundancy is being considered working with HR Operations and the HR Business Partner (where appropriate) to develop the business plan and business case establishing redundancy selection criteria planning and leading the consultation period considering and formally responding to the representations made by employees and trade unions and establishing the final proposals directly supporting, or arranging support for, employees during redundancy making redundancy selection decisions agreeing with HR who is responsible for arranging meetings and the drafting and issuing of letters and documentation All employees are responsible for: conducting themselves in an acceptable and professional manner and complying with the policy engaging in meaningful consultation giving serious consideration to alternative proposals and voluntary measures put forward during consultation completing the skills audit questionnaire participating in selection processes arranging their own trade union representative or companion if desired and advising management of this The HR person / BP who is supporting the manager is responsible for: advising on policy application and best practice supporting the development of the business plan and business case drafting and sending the S188 letter and HR1 form requesting estimates for redundancy pay and pension benefits agreeing with management who is responsible for arranging meetings and the drafting and issuing of letters and documentation attending meetings in an advisory capacity and to challenge proposal if necessary Managers How to Guide Redundancy V3 28.10.2014 Page 3 of 18
HR does not perform a decision making role The trade union representative or Hampshire County Council work colleague is responsible for: supporting their member/ colleague attending arranged meetings or ensuring meetings are covered and not delayed engaging in meaningful consultation giving serious consideration to alternative proposals and voluntary measures put forward during consultation They may make representations, submit papers, ask questions and address a meeting on behalf of the employee. They may not answer questions on behalf of the employee. Managers How to Guide Redundancy V3 28.10.2014 Page 4 of 18
Policy stages How to develop the business plan There are six possible stages: business plan business case if required consultation and conclusion of consultation selection for voluntary redundancy (if applicable) selection for compulsory redundancy (if applicable) and redeployment scheme appeal The business plan is the key driver and forms the basis of further planning. It involves the strategic scoping of the work to be undertaken to achieve the redundancies required. If you have already developed a business plan through the application of the Managing Workforce Change Policy there is no need to develop a second. However, where you contemplate redundancies which are not part of a wider programme of change or restructure you are required to complete a business plan. The business plan must identify the scope of the potential redundancies so that any necessary statutory consultation period can be taken into account. Where there are less than 20 potential redundancies you must contact HR Operations who can support you to develop the business plan. You are responsible for obtaining the necessary approvals to the business plan from senior managers within your department. Where there are 20 or more potential redundancies, senior management must liaise with an HR Business Partner, supported by relevant managers and HR Operations. The HR Business Partner is responsible for obtaining the necessary approvals from the Departmental and Corporate Management Teams. How to manage the consultation process Why? For any potential redundancy, consultation is essential and where 20 or more redundancies are proposed in one establishment within 90 days, there is a statutory duty to do so. Consultation may help you to: avoid redundancies through alternatives keep employees engaged protect the wellbeing of all those affected Managers How to Guide Redundancy V3 28.10.2014 Page 5 of 18
help you plan for the future comply with statutory requirements Who with? Consultation with trade unions must take place even if none of the affected employees are members themselves. Consultation must take place with all affected employees: directly affected those employees whose jobs are at risk of redundancy indirectly affected those employees whose own employment is not at risk but who interact with those directly affected and there is a subsequent effect on them You must remember to include employees who are absent from the workplace such as those on maternity leave, on a secondment or on sickness absence. They may not be able to attend planned consultation activities so make alternative arrangements to include them in the process where you can. Once you start making selections for redundancy, remember to also keep absent employees informed and involve them during this stage wherever possible. Your HR Adviser is able to advise you on the appropriate way of dealing with this. How? Consultation usually begins simultaneously with the trade unions and employees. The S188 letter must be submitted to trade unions first. You are responsible for liaising with the HR Business Partner or HR Adviser to help them complete the S188 letter and HR1 form. A template S188 letter is available to ensure all the required information is provided. This opens the consultation period. The HR Business Partner leads consultation with a departments joint consultative committee (JCC) and if necessary, at the corporate joint consultative group (JCG) of which the trade unions are members. This is followed up with employee briefings, email updates and sessions with employees and their trade union representatives. Each affected employee must receive a letter providing details of: the reason for the proposed redundancy dismissals opportunities for consultation the number of proposed redundancies and their job types Managers How to Guide Redundancy V3 28.10.2014 Page 6 of 18
the total number of employees affected the proposed methods of selection the procedure to be followed the method/s of calculating redundancy payment potential voluntary solutions Employee s must be offered individual meetings and it is at their discretion as to whether they wish to accept this offer as an opportunity to discuss concerns personal to them. Where you receive such requests, you must meet with the employee. Things to be discussed during consultation: business plan reason for redundancy and what the proposals are the plan for implementing redundancy, including the selection criteria employee opportunities for providing feedback how the feedback will be considered any alternative options e.g. reduction in hours, jobsharing, voluntary redundancy timeframes and key dates redeployment support for employees It is good practice to compile a briefing pack for employees. You must also arrange for discussions to be minuted and records kept and shared with employees. How long? Number of proposed redundancies within 90 days at an establishment Under 20 proposed redundancies From 20 to 99 proposed redundancies (collective consultation) 100 or more proposed redundancies (collective consultation) Consultation to start Minimum of two weeks (no statutory period) At least 30 days before the first redundancy notice takes effect (statutory period) At least 45 days before the first redundancy notice takes effect (statutory period) No dismissals can take effect until the consultation is complete and employee notice periods have been observed. Applying the term establishment is complex as it depends on the Managers How to Guide Redundancy V3 28.10.2014 Page 7 of 18
scope of the redundancies. You must discuss this with HR Operations or the HR Business Partner. When counting the number of proposed redundancies, there is no statutory obligation to include fixed term contracts which have reached, or will reach, their anticipated end date during the consultation period and have been in place for less than 4 years. Where the anticipated end date is not reached, these contracts must be counted. Failure to consult properly can lead to the payment of protective awards to employees (an Employment Tribunal can award up to a maximum of 90 days where 20 or more employees are to be made redundant). How to manage the outcome of consultation Having sought feedback and alternative options during the consultation process, you are responsible for considering all options and deciding the final plans. Where employees and trade union representatives are proposing voluntary measures which you believe are; reasonable, support the organisations needs and avoid or reduce the need for compulsory redundancies, these should be implemented where possible. Ideally you should seek an amicable conclusion with trade union representatives and employees but this is not mandatory and may not always be possible. Where agreement is reached this must be confirmed in writing and signed by both parties. Where it is not, you may still decide to continue with the proposals. You must communicate the final decision to trade union representatives and affected employees, ideally in a face to face format and then confirm in writing. Although the consultation period has concluded, you must remain in communication with trade unions and employees during the redundancies to update on progress and ensure they remain informed. How to select employees for voluntary redundancy A letter is sent to employees who are; at risk of redundancy or within the affected area and where their voluntary redundancy would create job security for colleagues The letter contains an estimated redundancy figure and pension Managers How to Guide Redundancy V3 28.10.2014 Page 8 of 18
benefit details if appropriate. If an employee is interested, they must submit an application through an expression of interest form by the specified deadline. Applications received after the deadline are not accepted. You are responsible for reviewing all applications and making a decision whether to accept or reject a request. It is advisable to complete this exercise with a colleague and/or HR, using the standard selection criteria. Doing so helps to ensure an objective process has been followed should employees have reason to challenge the decision. Where you reject an application, you must be confident that the employee will not be at risk of compulsory redundancy at a later date within the same restructuring process. How to accept an application for voluntary redundancy Employees are notified in writing as soon after the closing date as possible. You may wish to meet informally with the employee to give them the letter or soon after receiving it. Accepting an application is still legally a dismissal and therefore you must also formally meet with the employee to confirm the decision and issue notice. For guidance on this process see the sections on formal meetings. Should an employee not wish to attend a formal meeting, you can confirm their dismissal in writing instead. How to reject an application for voluntary redundancy How to select employees for compulsory redundancy competitive selection Employees are notified in writing as soon after the closing date as possible. You may wish to meet informally with the employee to give them the letter or soon after receiving it. An employee may be unhappy with the decision so take the opportunity to explain the reasons for your decision and where possible, discuss their role in the future structure. In circumstances where a unique post or a complete section will cease to exist, there is no need to go through a competitive selection process. In circumstances where there are more employees than available posts, selection is necessary through one, or more, of the following three methods. Paper based scoring exercise You can ask employees to complete a skills audit questionnaire Managers How to Guide Redundancy V3 28.10.2014 Page 9 of 18
which provides you with up to date information on their skills, qualifications and expertise. Using a selection grid, you can assess the completed questionnaires and assign a score against each criterion, for each employee. You may wish to weight criteria in order to differentiate those with the greatest importance. For instance, essential criteria can have a greater weighting than desirable. You must have already identified clear, objective and defined selection criteria and shared these with trade unions during the consultation stage. Selection is unfair and potentially discriminatory if employees are selected for reasons including: membership or non-membership of a trade union because they have taken part or propose to take part in trade union activities because selection is based directly or indirectly on the grounds of an employee s age, disability, gender (including gender reassignment), marital status, race, religion and beliefs, sexual orientation, trade union status and/or whether they are employed on a full-time or parttime basis because they are pregnant where the circumstances apply equally to other employees who have not been selected making a protected disclosure selection for health and safety reasons where they have taken time off for family reasons Criteria may include: relevant experience and skills qualifications relevant to the type of work or future needs of the organisation training and professional development competencies as identified in the Council s competency framework Having assessed the essential and desirable criteria, in circumstances where it remains difficult to distinguish between employees, you can use additional criteria such as: whether the employee has a live formal warning on file for misconduct, sickness absence or performance shortest length of continuous Hampshire County Council service All criteria must be applied fairly, reasonably and objectively. Managers How to Guide Redundancy V3 28.10.2014 Page 10 of 18
Interviews You may prefer to conduct interviews as a way of getting a greater level of detail from employees regarding their skills and experience. Where there are different roles to be filled, you may wish to conduct generic interviews so that each employee only needs to be interviewed once, but can be considered for all roles available. Testing Formal testing is an additional method of objectively assessing an employee. Both skills based and psychometric testing can be used. How to assess those absent from the workplace During a paper based scoring exercise, where you cannot score an employee because they are absent, you can consider: removing criterion scoring all employees as at the date when the absent employee was last at work During a competitive interview exercise, you must encourage all employees to attend and make adjustments where possible to enable them to do so. How to communicate a successful outcome How to communicate an unsuccessful outcome Employees are notified in writing as soon as the selection process is complete. You may wish to meet informally with the employee to give them the letter or soon after receiving it. Employees are notified in writing as soon as the selection process is complete. You may wish to meet informally with the employee to give them the letter, or soon after receiving it, in order to offer the employee your support. You must obtain approval of dismissal on the grounds of redundancy in accordance with the governance matrix or department scheme of delegation prior to holding a formal meeting with the employee to confirm dismissal. In the meantime you may wish to meet with the employee to discuss their options under the Redeployment Policy. Redeployment status can start at this point. Once approval is obtained you must meet formally with the employee to confirm dismissal on the grounds of redundancy and issue contractual notice. For guidance on this process see Managers How to Guide Redundancy V3 28.10.2014 Page 11 of 18
the sections on formal meetings. How to invite an employee to a formal meeting You or HR must write to the employee to invite them to a formal meeting. The letter must give up to 9 calendar days notice of the meeting. A template letter is available to ensure all the necessary information is included. Who chairs the formal meeting Stage Chair of the meeting Adviser to the chair Redundancy dismissal An appropriate manager HR Adviser if required Right to be accompanied The employee has the right to be accompanied at a formal meeting or appeal meeting by a trade union representative or a Hampshire County Council work colleague. It is the employee s responsibility to arrange their own companion and advise management of this. Alternative date An alternative date is automatically scheduled for within 9 calendars days of the first. All reasonable efforts should be made by the employee and their companion to attend the first scheduled date but where this is not possible due to availability, the alternative date will be used. If the employee is unable to attend or fails to attend the rearranged meeting, this will normally go ahead in the employee s absence. How to run a formal meeting The chair of the panel must; Voluntary redundancy: check the employee still wishes to take voluntary redundancy Compulsory redundancy: confirm the employee has been selected for redundancy and the process that has been followed to reach this decision where a competitive selection process has been followed, provide feedback on the scoring the employee received explain any part of the redundancy process that is unclear Managers How to Guide Redundancy V3 28.10.2014 Page 12 of 18
offer the employee the opportunity to comment or ask questions follow the Redeployment Policy and confirm next steps within the redeployment process explain their right to an appeal and how they go about this Voluntary and compulsory redundancy: discuss the notice period and agree a leaving date discuss annual leave entitlement complete the record of employee leaver form make an employee who is a member of a pension scheme aware of their responsibility to complete the necessary pension forms How to confirm the decision The chair of the meeting must send a letter to the employee to confirm the outcome. A template letter can be used to ensure all the necessary information is included. The letter will be sent ideally on the same day as the meeting but if not within 4 calendar days, and a copy placed on the epf. How to manage notice periods and annual leave Notice is given according to the employee s statement of particulars and the Notice Period Policy. A longer notice period may be given where there is an operational requirement for the employee to remain in post. If an employee taking voluntary redundancy requests to leave before the end of their notice period, you may agree to this subject to operational requirements. During a large scale restructure you must observe any corporate or departmental decisions regarding this. If the employee is entitled to a redundancy payment, this is re-calculated where the new leaving date means there is a change to the number of completed year s service. If an employee leaving on the grounds of compulsory redundancy requests to leave before the end of their notice and redeployment period, you can agree to this subject to operational requirements but the employee may forfeit their entitlement to a redundancy payment. Should an employee leaving on the grounds of voluntary or compulsory redundancy leave their job before the end of their notice period without your agreement, they may lose all or part of their redundancy payment. Managers How to Guide Redundancy V3 28.10.2014 Page 13 of 18
Payment in lieu of notice in relation to compulsory redundancy is not paid. You must calculate the amount of annual leave the employee is entitled to according to their leaving date. The employee must take all their annual leave before their leaving date. A payment in lieu of annual leave is only given in exceptions and you must observe any corporate or departmental decisions regarding this. Where the employee has taken too much leave, a deduction will be made to their final salary to reflect this. Redundancy pay Details of how a redundancy payment is calculated are included in appendix 1. HR can provide estimated redundancy figures which can be; used to develop the business case shared with employees during consultation and seeking expressions of interest for voluntary redundancy The actual redundancy figure is calculated along with an employee s final salary payment. An employee forfeits their entitlement to a redundancy payment if; they receive an offer of employment before their last day of service from an employer included under the Modification Order and they start work for that employer within 4 weeks of leaving the Council Redeployment Time off for redundant employees Right of appeal Where an employee is compulsory redundant you are responsible for following the Redeployment Policy and supporting an employee through this process. You are responsible for deciding whether an employee s request for time off can be supported, taking into account operational requirements. Where you do not feel it can not be supported you can refuse the request or look at alternative arrangements such as use of annual leave. An employee has a right to appeal the decision to end their employment on the grounds of compulsory redundancy. If the grounds for the appeal are unclear, you should ask the employee to clarify the specific reasons and their evidence. The grounds for appeal may include: Managers How to Guide Redundancy V3 28.10.2014 Page 14 of 18
the selection criteria used their selection for redundancy / score received during competitive selection there is not a situation of redundancy How to invite an employee to an appeal meeting You must write to the employee to invite them to a formal appeal meeting. The letter must give up to 9 calendar days notice of the meeting. Use the template letter to ensure you include all the necessary information. The employee has the right to be accompanied. An alternative date will be arranged if requested. Who chairs the appeal meeting Stage Chair of the meeting Adviser to the chair Appeal Two senior managers HR Adviser How to run an appeal meeting An appeal seeks to address the specific issues raised by the employee. The chair of the meeting will: invite the employee, or companion, to present their appeal invite management to present their response ask questions in respect of the presentation of the employee s appeal and/or the management response and allow the other panel members to do so invite both to summarise their case - management will usually summarise first (new evidence should not be introduced at this point) adjourn the meeting to consider the evidence and decide on the outcome reconvene the meeting to notify the employee of the outcome Possible outcomes the appeal is not upheld and the previous decision remains the appeal is upheld and an alternative outcome is decided If the employee is reinstated on appeal after a previous Managers How to Guide Redundancy V3 28.10.2014 Page 15 of 18
dismissal, the employee s service is continuous and any loss of pay between dismissal and reinstatement is paid. How to confirm the appeal decision The chair of the meeting must send a letter to the employee to confirm the outcome. A template letter can be used to ensure all the necessary information is included. The letter is sent ideally on the same day as the meeting but if not within 4 calendar days of the meeting and a copy placed on the epf. Support Managers: Any queries can be directed to HR Operations How to guide Governance Hantsfile reference: 7868955 Date of publication: V1 - April 2014 V2 August 2014 V3 October 2014 Planned review date: 3 years or sooner if required Owner: Related EHCC 2007 section: HR Operations N/A Managers How to Guide Redundancy V3 28.10.2014 Page 16 of 18
Appendix 1 - Calculating the redundancy payment In order to qualify for a redundancy payment, an employee must have two years continuous local government service. The Council has two methods of making a redundancy payment as detailed below: Voluntary redundancy (enhanced) This is a discretionary scheme which the Council only applies in circumstances of organisational restructuring. It is kept under review and may be withdrawn. Where an employee is a member of the Teachers Pension Scheme, any enhanced redundancy payment may be considered to be an enhanced severance payment and as they work in a local authority, premature pension benefits cannot be paid. (i.e. the value of the severance payment may be deducted from their final lump sum payment). Age groupings Service accrued up to and inc. 21 Service accrued between 22-40 Service accrued age 41 and above Maximum number of weeks of enhanced redundancy pay. Weeks redundancy pay per year of service 1.0 2.0 3.0 40 Each completed year of continuous service up to a maximum of 20 will count towards the calculation. Managers How to Guide Redundancy V3 28.10.2014 Page 17 of 18
Voluntary redundancy (unenhanced) Age groupings Service accrued up to and inc. 21 Service accrued between 22 40 Service accrued age 41 and above Maximum number of weeks of compulsory redundancy pay Weeks redundancy pay per year of service 0.5 1.0 1.5 30 Each completed year of continuous service up to a maximum of 20 will count towards the calculation. Compulsory Redundancy (unenhanced) Age groupings Service accrued up to and inc. 21 Service accrued between 22 40 Service accrued age 41 and above Maximum number of weeks of compulsory redundancy pay Weeks redundancy pay per year of service 0.5 1.0 1.5 30 Each completed year of continuous service up to a maximum of 20 will count towards the calculation. Managers How to Guide Redundancy V3 28.10.2014 Page 18 of 18