Redeployment and Redundancy Policy - Milton Keynes Council

Milton Keynes Council
Redeployment and Redundancy Policy
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Redeployment and Redundancy Policy
This policy is replicated in full within the Redeployment and Redundancy
Operational Guidelines available within the HR pages of the Intranet.
1. Introduction
1.1 Milton Keynes Council is committed to providing all staff with a stable
working environment where possible. However circumstances may
arise where developments in, for example, technology and
organisational requirements necessitate the need for change.
Organisational change can lead to restructuring and movement of staff.
The council is committed to handling such situations sensitively and
fairly.
1.2. This policy applies to all employees of Milton Keynes Council. For
school based staff the principles contained in this policy should be
applied but agreement from the governing body will be required.
1.3 This policy may be subject to review from time to time. This policy does
not form part of employee’s terms and conditions of employment, and
does not confer any contractual entitlement.
2. Organisational Change
2.1 At the outset of any anticipated change it is the responsibility of
managers to draw up a robust business case to justify the proposed
strategy.
2.2 The council will endeavour where at all possible to preserve
employment and mitigate against the need for any job losses.
2.3 A redundancy situation arises where:
a) the council ceases or intends to cease to carry on activity or work
for which the employee was employed; or
b) the council ceases or intends to cease to carry on activity or work in
the place where the employee worked; or
c) the requirement for employees to carry out work of a particular kind
or in a particular location has ceased or diminished, or is expected
to cease or diminish.
3. Consultation
3.1 The Council will advise employees and Staff Side Representatives at
the earliest time possible of the need to restructure or reduce employee
numbers.
3.2 Formal consultation commences when potentially affected employees
and their representatives are provided with the business case outlining
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the proposals in writing. Under employment law, this must also include
the following information if a redundancy situation is likely to arise:
• The number and descriptions of employees likely to be affected.
• The total number of employees of that description employed at the
establishment in question.
• The proposed method that will be used to make selection for redundancy.
• The proposed method of implementing, and the likely timing of, the
redundancies.
3.3 The object of the consultation will be to find ways of avoiding
redundancies if achievable or if redundancies are unavoidable, to
minimise the impact on individuals as far as possible. As part of the
process the council must consider and respond to representations
made by the trade unions including for example ways of avoiding,
reducing numbers or mitigating the consequences of the dismissals.
3.4 Even in cases where there is no legal obligation to consult collectively
the manager should still carry out a process of individual consultation in
order to discuss ways of avoiding redundancy.
3.5 The council will apply the consultation periods as detailed below:
• 19 or less employees affected - the council will commence a 30 day
collective and individual consultation period with the employees
affected.
• 20 to 99 employees within any 90 days - the council will commence
30 days collective and individual consultation.
• 100 or more employees affected within a period of 90 days - the
council will commence a 90 day consultation period.
4. Appointment to the new structure
4.1 Throughout the period of restructuring, employees will be kept regularly
informed by their manager of developments and stages in the
recruitment and selection programme.
4.2 Procedure
4.2.1 Permanent members of staff, those on fixed term contract with at least
one year’s service by the date of intended appointment and those who
have been formally notified that their job is considered to be at risk will
be given prior consideration in selection for permanent posts within the
new structure.
4.2.2 Prior consideration for selection can only be given to employees in
respect of posts on the same grade or one grade below their
substantive grade.
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4.2.3 It may not be appropriate to advertise all posts. This is because, for
certain posts, the grades of the new and existing posts may be similar
in terms of salary levels, the duties may be broadly the same and there
may be at least the same number of posts as potential applicants. In
these circumstances an employee will be slotted in to the new position
and advised of the start date of the appointment.
4.2.4 It may not always be possible to clearly identify the best candidate, on
the basis of the above assessment. There may be more eligible
candidates (once the above assessment has been carried out) than
posts or the new post may be on a higher grade and require different
skills. If this is the case, the new posts will be advertised internally (and
possibly ring-fenced) and employees will be invited to apply using a
special application form, which will help identify their up-to-date
experience and skills. Appointments will be made in accordance with
the Council’s Recruitment and Selection procedure.
5. Redeployment
5.1 The council will seek, wherever possible, to find permanent, alternative
employment for employees commensurate with their experience, skills
and abilities and where practicable at the same grade as their former
position.
5.2 Managers’ Responsibilities
The council expects all employees to be treated fairly and consistently
and to be accepted into a vacancy if they meet the essential criteria for
the post or would do so with reasonable training.
5.3 Offer of Alternative Employment
Any alternative offer of employment must be made in writing and be
made prior to the previous contract ending.
5.4 Trial Period
When an employee is offered an alternative role that differs from their
redundant role, the council will normally offer a four-week trial period.
The four week trial period can be extended up to a maximum of 3
months at management discretion.
6. Pay Protection
6.1 If an employee is redeployed into a post one grade lower than their old
grade the council’s pay protection arrangements will apply. These
arrangements will operate for a maximum period of two years from the
date of redeployment.
6.2 There will be no pay protection applied if an employee elects to apply
for a post more than one grade below their old grade.
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6.3 Pay protection arrangements are as follows:
• The first year will attract 100% salary protection.
• Protection in year two will taper as detailed below:
o Months one to three at 80% of salary protection
o Months four to six at 60% of salary protection
o Months seven to nine at 40% of salary protection
o Months ten to twelve at 20% of salary protection
• No cost of living award will be applied to the protected element of
salary.
• Pay protection will cease at the end of year two.
6.4 Some employees may have a legitimate equal pay claim when
comparing themselves to other employees whose posts have been
evaluated as being the same Job Evaluation Grade as themselves but
who are in receipt of additional payments under the pay protection
policy. Where this can be shown to be the case to the employer,
equivalent payments will be made to those employees as are made to
the comparable employees in receipt of additional payments under the
pay protection policy.
6.5 If, during the two year period, an employee obtains a post at their
former grade then they will be placed back on their former spinal
column thereby maintaining their salary level. Details of the pay
protection arrangements will be contained within the contract variation
which HR will issue to individuals who have been redeployed.
6.6 During the first year of redeployment the employee on a protected
salary will be afforded ‘preferred candidate’ status when applying for a
vacancy on their substantive grade.
7. Redundancy Process
7.1 Selection Criteria for Redundancy Pools
Where the number of employees exceeds the number of employees
required for a particular role, the council will adopt a fair selection
process using objective and relevant selection criteria. The criteria
used will meet ACAS guidelines and are agreed with the unions. Pools
of employees for selection, selection criteria and their application, will
be consulted with appropriate trade unions and individual employees
before their application.
7.2 Selection Criteria to Identify Individuals
The council uses the following criteria:
• Skills and Experience
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• Aptitude and approach to work
• Standard of current work
• Attendance record (Absences relating to an employee’s disability
should be discounted when using attendance as a selection criteria)
7.3 Redundancy Compensation Payment
7.3.1 The following applies in instances of both compulsory and voluntary
redundancy:
7.3.2 An employee who is dismissed for redundancy will be entitled to a
redundancy payment providing s/he has two years or more continuous
service with the recognised bodies under the Redundancy
Modifications Order.
7.3.3 In summary, the elements to the calculation are age, length of service
and pay. In respect of pay the council will apply the statutory weekly
pay cap as set out in the Employment Rights Act 1996, which is
reviewed annually (£380 as at 1 March 2010). A locally agreed
multiplier of 1.5 will also be applied as detailed below.
Service between ages Entitlement
Up to age 21 0.75 week’s pay (with cap) for each
completed year of service
22 to 40 (inclusive) 1.5 week’s pay (with cap) for each
completed year of service
41 plus 2.25 week’s pay (with cap) for each
completed year of service
7.3.4 The maximum number of years employment which can be taken into
account is 20.
7.3.5 Any entitlement to redundancy pay may be forfeited and retained by
the council should an employee be found guilty of gross misconduct at
the time of a redundancy announcement or during the notice period.
7.3.6 Employees who are members of the Local Government Pension
Scheme (LGPS) and have attained the age of 55 are entitled to
immediate payment of pension and lump sum if early retirement is on
the grounds of redundancy, subject to three months pensionable
service.
7.3.7 Employees who are members LGPS may elect to convert some or all
of their lump sum compensation in excess of the statutory redundancy
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payment into augmented years for pension purposes; the maximum
this can equate to is one third of the total redundancy payment, this
election must be made before the member’s last day of service.
7.4 Notifying Employees
Individual employees will be notified about their impending redundancy
at the earliest possible opportunity.
7.5 Notice Periods
The amount of notice which an employee is entitled to receive is that
set out in their contract of employment or the statutory period,
whichever is the greater. Notice will usually have to be worked in
accordance with the contract although payments in lieu of notice may
be made in appropriate cases.
7.6 Voluntary Redundancy
Although not often used Voluntary Redundancy is an alternative to
compulsory redundancy dismissals and may be considered. This will
attract the same level of redundancy compensation as compulsory
redundancy.
8. Appeals Against Selection for Redundancy
8.1 Any employee selected for redundancy will have the right to appeal
against the redundancy decision, including the application of
the relevant criteria. The appeal must be based on the belief that the
employee feels the selection criteria have been applied unfairly in their
case or that they have been wrongly included in the unit of selection
(pool) or that the unit of selection has been wrongly determined.
8.2 The appeal should be submitted in writing normally within 10 working
days of the date of the written notification of redundancy, to the
Assistant Director HR Strategy, who will conduct the appeal hearing
with the relevant Corporate Director.
9.0 Support to Employees at Risk of Redundancy
9.1 As well as redeployment support the council will aim to employ a
number of different measures to assist employees at risk of
redundancy. Full details of these can be found in the Redeployment
and Redundancy Guidelines.
9.2 Employees who are advised that they have been selected for
redundancy will be entitled to a reasonable amount of paid time off
work to look for another job (whether internal or external) or to arrange
training for future employment.
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Redeployment_and_Redundancy_Policy_adopted_by_Council_on_13th_April[1], with ‘Bainbridge’ wording adopted
by Council on 25 th May 2010