Guidance for Governors
Model Schools Redundancy Policy – D-24
Date Issued: Spring Term 2012 Agenda
The attached document is an amendment to the Model School’s Redundancy Policy, originally issued for recommendation in the Autumn Term 2011.
The amendment has been made to paragraph 9.1 which refers to the ‘Redundancy Payment Calculation’.
A decision has been made by Council Cabinet to update the current Policy for Discretionary Compensation Arrangements to reduce the standard multiplier, in all cases, from 2.2 to 1.5. This decision has been made under the Local Government (Early Termination of Employment) Regulations 2006 and the Teachers (Compensation for Redundancy and Premature Retirement) (Amendment) Regulations 2006. The Council will continue to base calculations on an actual weeks pay, rather than the statutory maximum.
Governing Bodies have the same discretion in relation to compensation and by virtue of the attached amendment to the aforementioned paragraph, you are strongly recommended to adopt the same position with regards to redundancy payment calculations.
Your Governing Body will need to make a decision as to whether you;
· adopt this subsequent amendment to the Model Schools Redundancy Policy,
· retain the Autumn Term 2011 version, which has higher cost implications,
· exercise individual Governing Body discretion with regards to the compensation payments
Please be aware that the Standard Operating Procedure, whereby School’s/Governing Bodies apply for funding for redundancy compensation has been reviewed. The impact of this review in relation to the change to the aforementioned amendment is;
‘If a school has decided to offer more generous terms than the authority’s redundancy scheme, then it would be reasonable to charge the excess to the school’
Governing Bodies are strongly recommended to consider this policy amendment for adoption. Should any elements of the policy be altered by individual schools there will be an obligation to undertake individual local consultation with recognised Trade Unions and Professional Associations. This policy has been produced in consultation with NUT, NASUWT, ATL, ASCL, NAHT, GMB and UNISON, with the exception of paragraph 9.1.
Reminder - Attention is drawn to the responsibility of the Governing Body to ensure that wherever a redundancy situation is identified; all options will be explored to mitigate a compulsory redundancy (ref Paragraph 6.0).
Governing Bodies are required to;
1. Read the attached policy amendment and note their responsibilities.
2. Please complete and return the notification form below with regards to your policy decision. A copy should be retained in school for reference.
3. Ensure that the Headteacher is made aware of this policy amendment and remind them of the requirement to undertake an Equality Impact Assessment when managing such change.
4. Ensure that staff are made aware of this policy and that the policy is published/accessible to all staff.
Contact: Sam Webb
HR Policy & Strategy Officer
Tel: 01384 812876
E-mail:
MODEL HR POLICY AND PROCEDURES – MODEL SCHOOLS REDUNDANCY POLICY
November 2011 version (amendment to 9.1) adopted by the Governing Body of:
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July 2011 version adopted by the Governing Body of:
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Neither version will be adopted by the Governing Body of:
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Signed by Chair of Governors on behalf of the Governing Body:
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DUDLEY METROPOLITAN BOROUGH COUNCIL
HR SERVICE FOR SCHOOLS
MODEL HR POLICY AND PROCEDURES
SECTION D (24)
Title: Model School’s Redundancy Policy
Policy purpose: To provide a procedure for redundancy.
Operational Contact: Schools nominated HR Officer
Human Resources supporting Children's Services.
Policy Contact: Sam Webb, HR Policy & Strategy Officer
01384 812876 or email:
Date: November 2011
School Policy: This policy applies to all employees of the School and is based on a whole School approach to redundancy. Should the Governing Body wish to adapt any non statutory element of this policy, the Governing Body will be required to consult with recognised Trade Unions at a local level.
Consultation: This procedure has been formulated in consultation with the NUT, NASUWT, ATL, ASCL, NAHT, GMB and UNISON, with the exception of paragraph 9.1.
Policy Revision History
Revision No Date Amendment Revised By
01 September 1992 Creation of Policy
02 June 2003 Update Chris McEwan
03 June 2011 Update Sam Webb
04 November 2011 Update Sam Webb
Extract of the Model School’s Redundancy Policy D24 – amendment to Paragraph 9.1
8.7 Re-employment or Employment with an Associated Employer
The Redundancy Payments (Continuity of Employment in Local Government, etc) (Modification) Order 1999 lists those employers considered to be ‘associated’. An employee who is offered a new job with an associated employer will not be entitled to a redundancy payment if the new appointment is to commence within 4 weeks of the redundancy date. An employee may not unreasonably delay the start of a new job to accommodate this. Their continuous employment will also be maintained in this situation when they commence their new job. A list of ‘associated’ employers and further guidance may be sought from the HR provider.
9.0 REDUNDANCY PAYMENTS
An employee will be entitled to a redundancy payment if they have been continuously employed for at least two years unless they unreasonably refuse an offer of suitable alternative employment. Continuous service is defined in The Redundancy Payments (Continuity of Employment in Local Government, etc) (Modification) Order 1999.
Where a non permanent workers employment ceases, and if the member of staff has accrued two or more year’s continuous service, an appropriate redundancy compensation payment will be made.
A redundancy payment will not be made to casual workers, as minimum continuous service criteria must be met, as described above.
9.1 Redundancy Payment Calculation
For each year of continuous service, the employee will receive a proportion of weekly pay as follows;
Age / Entitlement21 years or below / Half a week’s pay
22-40 years / One week’s pay
41 and above / One and half week’s pay
Local Government (Non Teaching Staff)
Redundancy payments will be calculated on the employee’s actual week’s pay, in accordance with contractual weeks.
Based on the table shown above, for Local Government (non-teaching) staff the lump sum compensation payment will be enhanced by applying a standard multiplier to the number of statutory weeks the employee is entitled to. The multiplier for all local government staff will be 1.5.
Appropriate Local Government Pension Scheme rules will apply.
Teaching Staff
Redundancy payments will be calculated on the employee’s actual week’s pay.
Additional weeks of compensation for redundancy up to a maximum of 66 weeks will be awarded to the employee, where compensation for Premature Retirement is not available. The redundancy payment will be calculated in line with statutory requirements (table above), for teaching staff who are eligible for compensation for Premature Retirement.
NB With effect from 1st January 2012, based on the table shown above, for teaching staff the lump sum compensation payment will be enhanced by applying a standard multiplier to the number of statutory weeks the employee is entitled to. The multiplier for all teaching staff will be 1.5.
Appropriate Teachers Pensions Scheme rules will apply.
For both teaching and non teaching staff, redundancy payments are currently tax-free below a threshold of £30,000.
9.2 Calculation of a Week’s Pay
A week’s pay will be calculated on actual salary on the date that the employee is formally given notice that they will be dismissed on the grounds of redundancy. Where earnings are variable, the average weekly remuneration will be calculated for the 12 weeks prior to the calculation date. If an employee receives no pay for any of the 12 weeks, the 12 week period will be extended to include previous weeks where pay was received.
9.3 Employees with Multiple Contracts
Usually, multiple contracts will be treated separately, so that any redundancy calculation will be based on the length of service of the contract from which the employee is being made redundant. The only time that an exception will be considered is where, at the time of redundancy, the employee is employed under only one contract but in the past, there have been one or more overlapping contracts. In such cases, continuous service recognised under The Redundancy Payments (Continuity of Employment in Local Government, etc) (Modification) Order