Employment principles 1.10 Job security Redundancy Policy 1.10 v.32 09/02/17 1 1 Formatted: Font color: Red Author uRichard Mears H.R. Manager Revision History Next revision due: December 2017 Revision date Previous revision date Summary of Changes Changes marked 28/11/2016 Review of policy incorporating changes to Updated policy to include reference to staff representatives on SMF Reflect changes in legislation relating to consultation period for 100+ redundancies Change from Department of Trade & Industry to Redundancy Payments Service Under Section “What Notice Will I be Given” incorporate Notice periods outlined in Signpost 1.11 Notice to Terminate Employment into 1.10 Policy. Standardise length of time to appeal to 10 working days (Monday to Friday) to avoid any confusion over Bank Holidays. If written evidence to be produced at a redundancy Appeal Hearing – to be submitted two weeks before the hearing. Appeals against redundancy will be heard by external Members Appeal Panel. Yes Approvals This document requires the following approvals: Title Date of Meeting Version National Park Authority Corporate Management Team 15 th December 2016 Version 3 Staff Management Forum 28 th November 2016 Verion 3 Distribution This document is made available on the R: drive. It was notified to all staff on XXX Related Policies All other policies in sections of Signpost 1.11 Notice to terminate employment Commented [EL1]: Commented [JC2]: Needs to now be updated to refer to Elizabeth Lewis, H.R. Officer Formatted: Superscript Formatted: Superscript Formatted: Normal, Left Formatted: Font: Times New Roman, 12 pt
This policy covers all NJC employees of the Brecon Beacons National Park Authority. The Job SecurityRedundancy Policy applies when a member of staff is identified as “displaced” due to a restructure or work re-organisation. This term applies if:
Their job no longer exists.
It no longer exists at the same location.
Fewer people are needed to do the work, or are needed to do the work at that location.Under the Employment Rights Act 1996, redundancy arises when employees are dismissed in the following circumstances:
Where the employer has ceased, or intends to cease, to carry on the business for the purpose for which the employee was employed:or
where the employer has ceased, or intends to cease, to carry on the business in the place where the employee was employed: or
where the requirements of the business for the employees to carry out work of a particular kind have ceased or diminished or are expected to cease or diminish: or
where the requirements of the business for employees to carry out work of a particular kind, in the place where they were so employed have ceased or diminished or expected to cease or diminish.
Redundancy may also occur where the Authority no longer has the resources to carry out work of a certain kind.
In such cases, a suitable selection process (as outlined in this policy) will be used to identify which members of staff are displaced.
What is the policy? In conjunction with other HR policies, this policy is designed to promote and encourage best practise in management of displaced employees. The aim is to ensure that staff surpluses are managed effectively to meet the needs of the Authority whilst minimising the adverse effects on employees. This will ensure that the Authority has the human resources it needs now and in the future and that employees remain aware, motivated and committed in the face of organisational change. To enable us to meet this aim, the policy outlines a series of steps to ensure that displaced employees are treated in a fair and consistent way. Whilst every effort will be made to avoid redundancy, there may be occasions when this is the only option. In these circumstances there will be full consultation with the unions and staff representatives at the Staff Management Forum (SMF).. The principle of equal opportunities will be applied in the operation of this policy.
Objectives
What are the objectives?
The objectives of this policy are to:
Minimise the number of employees who become displaced.
Set out selection criteria for achieving a reduction in employee numbers.
Minimise the need for redundancy through redeployment.
Set out measures to be taken in the event of voluntary or compulsory redundancy.
Set out the consultation arrangements in the event of changing human resource requirements that may result in displaced employees.
Outline the appeals process.
Consultation
What will the Authority consult the unions Staff Management Forum about?
Consultation will precede any decisions to terminate employment on the grounds of redundancy. The Authority will consult with the Unions and Staff representatives through the Staff Management Forum and provide appropriate information relating to changing human resource requirements in good time on:
The proposed numbers and roles that are likely to be surplus to requirements and
The measures, which will be considered, subject to operational requirements, in order to minimise redundancies.
.
A copy of the Equality Impact Assessment for the Restructure
What are the statutory consultation requirements?
Employers are required by law to consult on a collective level with employee representative bodies once it becomes clear that redundancies are proposed.
The statutory timescale are set out in the table below. Whenever possible, the Authority will consult with the unions even when it is not a statutory requirement.
Proposed redundancies at one establishment within a period of 90 days or less
Consultation will commence
100+ At least 4590days before the first of those redundancies takes effect.
20-99 At least 30 days before the first of those redundancies takes effect.
Less than 5 employees Can be agreed locally agreed consultation period of less than 30 days but no less than 5 working days
What happens after a consultation?
Following consultation, the Authority will give formal notice of proposed redundancies to the unions and staff representatives through the Staff Management Forum and where required. Tthe Authority willis also required by law to inform the Department of Trade and Industry.advise the Redundancy Payments Service (RPS) using Form HR1
What if an employee is absent due to Maternity Leave, Adoption Leave, or Long Term Illness?
If you are absent from work for reasons of Maternity Leave, Adoption Leave or a Long term Illness you will be kept informed at all stages of the consultation and provided the relevant information and opportunities.
Managing displaced employees What are the measures designed to minimise the
The following will be considered subject to operational requirements:
Natural wastage.
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Re-deployment at the same, higher or lower level with any necessary retraining.
Voluntary redundancy and early retirement.
What if I request Voluntary Redundancy
Whilst applications for Voluntary redundancy will be considered, the application will be subject to and based on the requirements of the service and the skills the Authority need to retain, the Authority therefore has the right not to accept an employee’s request.
When will redundancies be necessary?
Every effort will be made to ensure redeployment of displaced employees. However, if these fail to eliminate surpluses or to reduce them to an acceptable level, redundancies may be necessary as a last resort, following discussion with the unions and individuals.
Redeployment – Suitable Alternative Employment Will I be considered for redeployment?
We will always endeavour to re-deploy displaced staff wherever possible and will offer employees the opportunity to be considered for jobs within the Authority prior to open advertisement..
What factors will be taken into account?
When considering you for any opportunities, the Authority will take into account your:
Performance and conduct.
Skills and experience.
Suitability for retraining.
Personal and domestic circumstances, identifying location and mobility.
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If a position is identified that the Authority considers being a “suitable alternative” in terms of general skills and competencies required, and key terms and conditions, the decision regarding your placement rests with the Authority.
If a position is offered that requires a different skill set and/or significant retraining, or the key terms and conditions differ from those of your previous role, any placement will be by mutual agreement between the Authority and you. Such a role would not be deemed a “suitable alternative” and you would not be obliged to take it.
What makes a role a suitable alternative?
There are a number of factors that will be taken into consideration in deciding whether an alternative job is suitable or not. These include;
Job evaluation ratings within an acceptable range.
There must not be a significant change in status or contractual benefits.
The extent to which the new job uses the individual’s existing skills and competencies.
Training requirements.
Location / mobility issues.
Working environment.
Domestic circumstances of the individual Hours of Work.
What if I am redeployed to a lower level?
In certain circumstances jobs at a slightly lower level or grade may be considered a suitable alternative. If you are redeployed to a lower level, salary and benefits will be managed in accordance with the Protection of Pay and Allowances Policy
You may choose to apply for a job that is not deemed to be a suitable alternative because it is too far below your current role in terms of band and content. If you are offered such a position, your salary and benefits would be protected in accordance with the protection of Pay and Allowance policy (unless the new role is more than one grade lower than the previous one, in which case they would be adjusted in accordance with the new role).
If an employee unreasonably refuses an offer of suitable alternative employment they may lose their entitlement to
What happens when I am redeployed into a different job?
If you are redeployed into a new job, or agree to consider a position, even though the Authority may not deem it a “suitable alternative”, you are entitled to a trial period.
Trial period What is the trial period?
The purpose of the trial is to ensure you are given full induction, training and support. It will usually be for a period of 12 weeks if significant retraining is required. If everything is satisfactory at the end of the period, you will then be confirmed in your new role and the right to redundancy pay will be lost..
What happens at the end of the trial?
If, during or at the end of the trial period you decide that you do not believe the role is a suitable alternative to your previous position you should raise your concerns with your line manager. If you are still unable to resolve the issues, you have the right to appeal against the suitability of the new job (see Appeals). However, if you choose to resign rather than remain in a suitable alternative role, you should be aware that you will not be entitled to a redundancy payment. If the role is very different from your previous one, and is not deemed to be a suitable alternative, you may still have agreed to try it out. In such cases, if you decide that you do not wish to remain in the role after the trial, you will not lose your entitlement to a redundancy payment. However, the Authority will of course continue to look for a suitable position for you in the meantime.
What support will I receive?
Your line manager will work with you during the trial period to provide support and guidance as necessary. If you have any concerns you should raise them straight away. There is no need to wait until the end of the trial period. If appropriate, you will be given any skills training required for the new role. It may also be necessary, for familiarisation training purposes only, for you to carry out lower-graded or more basic tasks during the earlier part of the trial period.
What if I am redeployed to another location
If the redeployment post is at another location, then your excess (if your travelling distance is more than 5 miles from your previous location) travelling expenses will be paid for a period of up to 2 years from your date you started in the new role and will be reimbursed at the current mileage HMIR tax rate (currently 40p per mile)
Unless your contract of employment states otherwise, the statutory period of notice is as follows:
One month or more but less than two years service – One week notice.
Two years or more but less than 12 years’ service – One week’s notice for each year of continuous employment.
Twelve years or more service – Twelve weeks’ notice. (For the purposes of assessing service, any continuous service from previous Authorities will be counted.
The Notice of redundancy must be issued at the Statutory Dismissal (Redundancy) interview and confirmed in writing to each individual affected including the following details:
Reasons for redundancy.
Effective date of redundancy.
Redundancy payment and how his has been calculated.
Right of appeal. If an employee leaves early without serving the notice of redundancy without the Authorities agreement it would be classified as a resignation and the employee would lose the right to redundancy payment. In all potential redundancy situations, you will be given notice of the date on which contractual notice will commence. If you have agreed to accept the Authority’s redundancy terms, notice will begin to run from the date you sign, or at the appropriate point prior to the date of leaving, whichever is the later. In all other situations notice will commence by means of a 28-day notification letter, unless waived due to special business circumstances. During this time you may:
Accept the terms of redundancy (acceptance will terminate the 28-day notification period and your contractual notice will then commence) or
Appeal against your selection for redundancy
If you have taken no action by the end of the 28-day period your contractual notice will commence
What happens if a suitable alternative role is found after I have signed to accept redundancy terms?
We are committed to minimising redundancies wherever possible, and will endeavour to find alternative positions for displaced staff. We will usually continue job search activities during your notice period, and we reserve the right to offer you any job deemed to be a suitable alternative. Should this happen, you will be expected to give reasonable consideration to any such job offer.
Appeals Can I appeal? You may appeal against your selection for redundancy or
against the suitability of the alternative employment that you have been offered. You have a right of appeal against selection for redundancy and dismissal, on the following grounds:
Unfair selection for redundancy. Failure to follow procedures. Dismissal on the grounds of redundancy.
What is the purpose of an appeal?
The purpose of the appeal will be to find a solution that is acceptable to all parties. The appeals process will be the final stage of the procedure. In the event that an appeal against selection for redundancy does not produce a solution, the Authority has the right to use the last resort of compulsory redundancy, in which case full redundancy terms will apply. If an appeal against the suitability of a role is upheld, the Authority will continue to look for a suitable position for the individual, over an agreed period.
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How do I appeal? Written appeals for selection for redundancy must be received within 10 working days of the date of issue of the notification of redundancy letter to the Chief Executive and any written evidence must be submitted to the Appeal’s Panel two weeks before the date of the Appeal hearing to enable the Panel time to read the documentation. Written appeals against the suitability of alternative employment will usually only be appropriate at the end of the trial period, and after informal discussions have been held to establish the nature of your concerns. The request for an appeal must be submitted to the Chief Executive within 10 working days of the Authority confirming that the role is deemed to be a suitable alternative.
When will my hearing be heard?
Wherever possible yYour appeal will be heard before the end of the 28-day period. Where this is not possible your appeal will be heard during the your contractual notice period. The Appeals panel will hear the appeal as soon as practicably possible, the panel would endeavour to meet within 15 days of the registration of the appeal to the Chief Executive. If your appeal is successful contractual notice will be rescinded. Similar timescales for appeals against suitability of alternative employment will apply in such instances there is no notice period.
Who will hear my appeal?
There will be an Appeal Committee which will consist of Chief Executive, HR Manager, Union representative and your Director.Appeals against redundancy will be heard by an external Members Appeals Panel of another NPA in WalesWelsh National Park Authority.
When will I be advised of the outcome?
The employee will be informed in writing within 5 working days of the hearing and the panel will inform the notify the employing department. There is no further right to appeal within the Authority.
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If an employee is found to have breached their conduct to justify dismissal, then the employee loses the right to redundancy.
Facilities for redundant employees What facilities are available to me?
The following facilities are available to you:
Reasonable time off to seek alternative employment.
Reasonable access to office facilities, subject to any issues relating to confidentiality, for the preparation of job and / or training applications.
Will be offered the option of the Conifidential Counselling Service offered by the Authority.
Redundancy Terms How are the lump sum payments calculated?
Redundancy payments will be based on the following terms:
On what will the payments be based?
Payments will be based on your weekly salary and the actual service to date of termination, rounded down to a whole number of completed years, and age as at last birthday.
What is my maximum entitlement
The maximum years’ service is 20 and depending on your age.
What is included? The following will be included, as appropriate, in the
calculation of a week’s pay, based on values as at date of termination of service:
Basic salary.
All contractual payments. Do I have to pay tax? At present, the first £30,000 of the total redundancy
package is exempt from tax. Any balance is taxable at the employee’s marginal rate.
What about my holiday entitlement?
You will receive a pro-rata holiday entitlement for the year up to the date of termination of your employment. You
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may receive payment in lieu if it is not possible for you to take this holiday before the date of termination.
Fixed Term Contracts Fixed Term Employees
Fixed term employees are entitled to equal treatment alongside permanent staff in relation to the Job Security policy and should receive access to redeployment opportunities, regardless of length of service.
.However, fixed term employees whose contract provides
cover for a permanent job holder in the following circumstances would not be entitled to redundancy:
Maternity leave cover
Sickness absence cover
Fixed term employees who, due to poor performance have had their contracts terminated early or whose contracts have not been extended would not be entitled to redundancy
Am I entitled to redundancy payments?
To qualify for Statutory Redundancy Payments you must have been continuously employed by the authority for a minimum period of 2 years.
Will I be notified before my contract expires?
Yes. Human Resources will write to you to arrange a meeting with:
You and Your line manager.
A Human Resources representative will be present.
Your nominated representative (if required) What is the purpose of the meeting?
The purpose of the meeting is to advise you that the contract is due to expire, the reason for the contract’s termination and the termination date.
Am I entitled to redundancy payments?
To qualify for Statutory Redundancy Payments you must have been continuously employed by the authority for a minimum period of 2 years.
Can I be represented at the meeting?
You have the right to be accompanied by a fellow worker or trade union official. Employees are free to choose an official from any trade union to accompany them regardless of whether the union is recognised or not.
Do I have the right to appeal against the termination of my
Yes, you have the right to appeal against the decision.
You have the right to appeal to the HR ManagerChief
contract? Executive, in writing, within seven 10 working days of the decision to terminate your contract. The appeal should be heard by a Director of the Authority Members of the Authrority.
An appeal is to re-examine the correctness of the decision and the procedure that was followed. It exceptionally allows for any new evidence to be considered.
When will the appeal be held?
The Appeals panel will hear the appeal as soon as practicably possible, the panel would endeavour to meet within 15 days of the registration of the appeal to the Chief Executive. If your appeal is successful contractual notice will be rescinded. Similar timescales for appeals against suitability of alternative employment will apply in such instances there is no notice period.The reviewer will investigate the circumstances and will hold an Appeal hearing with you whenever possible within 28 days of receipt of the request. After reviewing the case, taking into account any extenuating circumstances and/or additional evidence, and allowing you to comment on it, the decision will be advised as soon as possible and in all circumstances a written confirmation will be given within a further seven days.
Am I entitled to representation at the appeal?
You have the right to be accompanied by a fellow workerrepresentative or trade union official at all formal stages of the procedure. Employees are free to choose an official from any trade union to accompany them regardless of whether the union is recognised or not.
Can the appeal decision be changed?
Decisions made as a result of an appeal hearing will be final and binding.
HR write to employee advising Date contract finishes
Meeting to be arranged with line manager Right to be accompanied at meeting
