Redeployment and Redundancy Policy - Milton Keynes Council
Redeployment and Redundancy Policy - Milton Keynes Council
Redeployment and Redundancy Policy - Milton Keynes Council
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<strong>Milton</strong> <strong>Keynes</strong> <strong>Council</strong><br />
<strong>Redeployment</strong> <strong>and</strong> <strong>Redundancy</strong> <strong>Policy</strong><br />
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<strong>Redeployment</strong>_<strong>and</strong>_<strong>Redundancy</strong>_<strong>Policy</strong>_adopted_by_<strong>Council</strong>_on_13th_April[1], with ‘Bainbridge’ wording adopted<br />
by <strong>Council</strong> on 25 th May 2010
<strong>Redeployment</strong> <strong>and</strong> <strong>Redundancy</strong> <strong>Policy</strong><br />
This policy is replicated in full within the <strong>Redeployment</strong> <strong>and</strong> <strong>Redundancy</strong><br />
Operational Guidelines available within the HR pages of the Intranet.<br />
1. Introduction<br />
1.1 <strong>Milton</strong> <strong>Keynes</strong> <strong>Council</strong> is committed to providing all staff with a stable<br />
working environment where possible. However circumstances may<br />
arise where developments in, for example, technology <strong>and</strong><br />
organisational requirements necessitate the need for change.<br />
Organisational change can lead to restructuring <strong>and</strong> movement of staff.<br />
The council is committed to h<strong>and</strong>ling such situations sensitively <strong>and</strong><br />
fairly.<br />
1.2. This policy applies to all employees of <strong>Milton</strong> <strong>Keynes</strong> <strong>Council</strong>. For<br />
school based staff the principles contained in this policy should be<br />
applied but agreement from the governing body will be required.<br />
1.3 This policy may be subject to review from time to time. This policy does<br />
not form part of employee’s terms <strong>and</strong> conditions of employment, <strong>and</strong><br />
does not confer any contractual entitlement.<br />
2. Organisational Change<br />
2.1 At the outset of any anticipated change it is the responsibility of<br />
managers to draw up a robust business case to justify the proposed<br />
strategy.<br />
2.2 The council will endeavour where at all possible to preserve<br />
employment <strong>and</strong> mitigate against the need for any job losses.<br />
2.3 A redundancy situation arises where:<br />
a) the council ceases or intends to cease to carry on activity or work<br />
for which the employee was employed; or<br />
b) the council ceases or intends to cease to carry on activity or work in<br />
the place where the employee worked; or<br />
c) the requirement for employees to carry out work of a particular kind<br />
or in a particular location has ceased or diminished, or is expected<br />
to cease or diminish.<br />
3. Consultation<br />
3.1 The <strong>Council</strong> will advise employees <strong>and</strong> Staff Side Representatives at<br />
the earliest time possible of the need to restructure or reduce employee<br />
numbers.<br />
3.2 Formal consultation commences when potentially affected employees<br />
<strong>and</strong> their representatives are provided with the business case outlining<br />
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<strong>Redeployment</strong>_<strong>and</strong>_<strong>Redundancy</strong>_<strong>Policy</strong>_adopted_by_<strong>Council</strong>_on_13th_April[1], with ‘Bainbridge’ wording adopted<br />
by <strong>Council</strong> on 25 th May 2010
the proposals in writing. Under employment law, this must also include<br />
the following information if a redundancy situation is likely to arise:<br />
• The number <strong>and</strong> descriptions of employees likely to be affected.<br />
• The total number of employees of that description employed at the<br />
establishment in question.<br />
• The proposed method that will be used to make selection for redundancy.<br />
• The proposed method of implementing, <strong>and</strong> the likely timing of, the<br />
redundancies.<br />
3.3 The object of the consultation will be to find ways of avoiding<br />
redundancies if achievable or if redundancies are unavoidable, to<br />
minimise the impact on individuals as far as possible. As part of the<br />
process the council must consider <strong>and</strong> respond to representations<br />
made by the trade unions including for example ways of avoiding,<br />
reducing numbers or mitigating the consequences of the dismissals.<br />
3.4 Even in cases where there is no legal obligation to consult collectively<br />
the manager should still carry out a process of individual consultation in<br />
order to discuss ways of avoiding redundancy.<br />
3.5 The council will apply the consultation periods as detailed below:<br />
• 19 or less employees affected - the council will commence a 30 day<br />
collective <strong>and</strong> individual consultation period with the employees<br />
affected.<br />
• 20 to 99 employees within any 90 days - the council will commence<br />
30 days collective <strong>and</strong> individual consultation.<br />
• 100 or more employees affected within a period of 90 days - the<br />
council will commence a 90 day consultation period.<br />
4. Appointment to the new structure<br />
4.1 Throughout the period of restructuring, employees will be kept regularly<br />
informed by their manager of developments <strong>and</strong> stages in the<br />
recruitment <strong>and</strong> selection programme.<br />
4.2 Procedure<br />
4.2.1 Permanent members of staff, those on fixed term contract with at least<br />
one year’s service by the date of intended appointment <strong>and</strong> those who<br />
have been formally notified that their job is considered to be at risk will<br />
be given prior consideration in selection for permanent posts within the<br />
new structure.<br />
4.2.2 Prior consideration for selection can only be given to employees in<br />
respect of posts on the same grade or one grade below their<br />
substantive grade.<br />
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<strong>Redeployment</strong>_<strong>and</strong>_<strong>Redundancy</strong>_<strong>Policy</strong>_adopted_by_<strong>Council</strong>_on_13th_April[1], with ‘Bainbridge’ wording adopted<br />
by <strong>Council</strong> on 25 th May 2010
4.2.3 It may not be appropriate to advertise all posts. This is because, for<br />
certain posts, the grades of the new <strong>and</strong> existing posts may be similar<br />
in terms of salary levels, the duties may be broadly the same <strong>and</strong> there<br />
may be at least the same number of posts as potential applicants. In<br />
these circumstances an employee will be slotted in to the new position<br />
<strong>and</strong> advised of the start date of the appointment.<br />
4.2.4 It may not always be possible to clearly identify the best c<strong>and</strong>idate, on<br />
the basis of the above assessment. There may be more eligible<br />
c<strong>and</strong>idates (once the above assessment has been carried out) than<br />
posts or the new post may be on a higher grade <strong>and</strong> require different<br />
skills. If this is the case, the new posts will be advertised internally (<strong>and</strong><br />
possibly ring-fenced) <strong>and</strong> employees will be invited to apply using a<br />
special application form, which will help identify their up-to-date<br />
experience <strong>and</strong> skills. Appointments will be made in accordance with<br />
the <strong>Council</strong>’s Recruitment <strong>and</strong> Selection procedure.<br />
5. <strong>Redeployment</strong><br />
5.1 The council will seek, wherever possible, to find permanent, alternative<br />
employment for employees commensurate with their experience, skills<br />
<strong>and</strong> abilities <strong>and</strong> where practicable at the same grade as their former<br />
position.<br />
5.2 Managers’ Responsibilities<br />
The council expects all employees to be treated fairly <strong>and</strong> consistently<br />
<strong>and</strong> to be accepted into a vacancy if they meet the essential criteria for<br />
the post or would do so with reasonable training.<br />
5.3 Offer of Alternative Employment<br />
Any alternative offer of employment must be made in writing <strong>and</strong> be<br />
made prior to the previous contract ending.<br />
5.4 Trial Period<br />
When an employee is offered an alternative role that differs from their<br />
redundant role, the council will normally offer a four-week trial period.<br />
The four week trial period can be extended up to a maximum of 3<br />
months at management discretion.<br />
6. Pay Protection<br />
6.1 If an employee is redeployed into a post one grade lower than their old<br />
grade the council’s pay protection arrangements will apply. These<br />
arrangements will operate for a maximum period of two years from the<br />
date of redeployment.<br />
6.2 There will be no pay protection applied if an employee elects to apply<br />
for a post more than one grade below their old grade.<br />
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<strong>Redeployment</strong>_<strong>and</strong>_<strong>Redundancy</strong>_<strong>Policy</strong>_adopted_by_<strong>Council</strong>_on_13th_April[1], with ‘Bainbridge’ wording adopted<br />
by <strong>Council</strong> on 25 th May 2010
6.3 Pay protection arrangements are as follows:<br />
• The first year will attract 100% salary protection.<br />
• Protection in year two will taper as detailed below:<br />
o Months one to three at 80% of salary protection<br />
o Months four to six at 60% of salary protection<br />
o Months seven to nine at 40% of salary protection<br />
o Months ten to twelve at 20% of salary protection<br />
• No cost of living award will be applied to the protected element of<br />
salary.<br />
• Pay protection will cease at the end of year two.<br />
6.4 Some employees may have a legitimate equal pay claim when<br />
comparing themselves to other employees whose posts have been<br />
evaluated as being the same Job Evaluation Grade as themselves but<br />
who are in receipt of additional payments under the pay protection<br />
policy. Where this can be shown to be the case to the employer,<br />
equivalent payments will be made to those employees as are made to<br />
the comparable employees in receipt of additional payments under the<br />
pay protection policy.<br />
6.5 If, during the two year period, an employee obtains a post at their<br />
former grade then they will be placed back on their former spinal<br />
column thereby maintaining their salary level. Details of the pay<br />
protection arrangements will be contained within the contract variation<br />
which HR will issue to individuals who have been redeployed.<br />
6.6 During the first year of redeployment the employee on a protected<br />
salary will be afforded ‘preferred c<strong>and</strong>idate’ status when applying for a<br />
vacancy on their substantive grade.<br />
7. <strong>Redundancy</strong> Process<br />
7.1 Selection Criteria for <strong>Redundancy</strong> Pools<br />
Where the number of employees exceeds the number of employees<br />
required for a particular role, the council will adopt a fair selection<br />
process using objective <strong>and</strong> relevant selection criteria. The criteria<br />
used will meet ACAS guidelines <strong>and</strong> are agreed with the unions. Pools<br />
of employees for selection, selection criteria <strong>and</strong> their application, will<br />
be consulted with appropriate trade unions <strong>and</strong> individual employees<br />
before their application.<br />
7.2 Selection Criteria to Identify Individuals<br />
The council uses the following criteria:<br />
• Skills <strong>and</strong> Experience<br />
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<strong>Redeployment</strong>_<strong>and</strong>_<strong>Redundancy</strong>_<strong>Policy</strong>_adopted_by_<strong>Council</strong>_on_13th_April[1], with ‘Bainbridge’ wording adopted<br />
by <strong>Council</strong> on 25 th May 2010
• Aptitude <strong>and</strong> approach to work<br />
• St<strong>and</strong>ard of current work<br />
• Attendance record (Absences relating to an employee’s disability<br />
should be discounted when using attendance as a selection criteria)<br />
7.3 <strong>Redundancy</strong> Compensation Payment<br />
7.3.1 The following applies in instances of both compulsory <strong>and</strong> voluntary<br />
redundancy:<br />
7.3.2 An employee who is dismissed for redundancy will be entitled to a<br />
redundancy payment providing s/he has two years or more continuous<br />
service with the recognised bodies under the <strong>Redundancy</strong><br />
Modifications Order.<br />
7.3.3 In summary, the elements to the calculation are age, length of service<br />
<strong>and</strong> pay. In respect of pay the council will apply the statutory weekly<br />
pay cap as set out in the Employment Rights Act 1996, which is<br />
reviewed annually (£380 as at 1 March 2010). A locally agreed<br />
multiplier of 1.5 will also be applied as detailed below.<br />
Service between ages Entitlement<br />
Up to age 21 0.75 week’s pay (with cap) for each<br />
completed year of service<br />
22 to 40 (inclusive) 1.5 week’s pay (with cap) for each<br />
completed year of service<br />
41 plus 2.25 week’s pay (with cap) for each<br />
completed year of service<br />
7.3.4 The maximum number of years employment which can be taken into<br />
account is 20.<br />
7.3.5 Any entitlement to redundancy pay may be forfeited <strong>and</strong> retained by<br />
the council should an employee be found guilty of gross misconduct at<br />
the time of a redundancy announcement or during the notice period.<br />
7.3.6 Employees who are members of the Local Government Pension<br />
Scheme (LGPS) <strong>and</strong> have attained the age of 55 are entitled to<br />
immediate payment of pension <strong>and</strong> lump sum if early retirement is on<br />
the grounds of redundancy, subject to three months pensionable<br />
service.<br />
7.3.7 Employees who are members LGPS may elect to convert some or all<br />
of their lump sum compensation in excess of the statutory redundancy<br />
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<strong>Redeployment</strong>_<strong>and</strong>_<strong>Redundancy</strong>_<strong>Policy</strong>_adopted_by_<strong>Council</strong>_on_13th_April[1], with ‘Bainbridge’ wording adopted<br />
by <strong>Council</strong> on 25 th May 2010
payment into augmented years for pension purposes; the maximum<br />
this can equate to is one third of the total redundancy payment, this<br />
election must be made before the member’s last day of service.<br />
7.4 Notifying Employees<br />
Individual employees will be notified about their impending redundancy<br />
at the earliest possible opportunity.<br />
7.5 Notice Periods<br />
The amount of notice which an employee is entitled to receive is that<br />
set out in their contract of employment or the statutory period,<br />
whichever is the greater. Notice will usually have to be worked in<br />
accordance with the contract although payments in lieu of notice may<br />
be made in appropriate cases.<br />
7.6 Voluntary <strong>Redundancy</strong><br />
Although not often used Voluntary <strong>Redundancy</strong> is an alternative to<br />
compulsory redundancy dismissals <strong>and</strong> may be considered. This will<br />
attract the same level of redundancy compensation as compulsory<br />
redundancy.<br />
8. Appeals Against Selection for <strong>Redundancy</strong><br />
8.1 Any employee selected for redundancy will have the right to appeal<br />
against the redundancy decision, including the application of<br />
the relevant criteria. The appeal must be based on the belief that the<br />
employee feels the selection criteria have been applied unfairly in their<br />
case or that they have been wrongly included in the unit of selection<br />
(pool) or that the unit of selection has been wrongly determined.<br />
8.2 The appeal should be submitted in writing normally within 10 working<br />
days of the date of the written notification of redundancy, to the<br />
Assistant Director HR Strategy, who will conduct the appeal hearing<br />
with the relevant Corporate Director.<br />
9.0 Support to Employees at Risk of <strong>Redundancy</strong><br />
9.1 As well as redeployment support the council will aim to employ a<br />
number of different measures to assist employees at risk of<br />
redundancy. Full details of these can be found in the <strong>Redeployment</strong><br />
<strong>and</strong> <strong>Redundancy</strong> Guidelines.<br />
9.2 Employees who are advised that they have been selected for<br />
redundancy will be entitled to a reasonable amount of paid time off<br />
work to look for another job (whether internal or external) or to arrange<br />
training for future employment.<br />
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<strong>Redeployment</strong>_<strong>and</strong>_<strong>Redundancy</strong>_<strong>Policy</strong>_adopted_by_<strong>Council</strong>_on_13th_April[1], with ‘Bainbridge’ wording adopted<br />
by <strong>Council</strong> on 25 th May 2010