Policy and Procedure Document

Policy and Procedure Document

Document Name: / Avoidance of Redundancy/Redundancy Policy and Procedure
Ref & version no.: / Final
Status: / Agreed
Equality Impact Assessment: / In progress – first stage completed
Approved by: / Executive Director of Human Resources
Effective from: / 17 December 2010
Date for review: / As Required
Author: / HR Division
Owner: / HR Division
Document control: / All printed versions of this document are classified as uncontrolled. A controlled version of this document is available from Human Resources or in the ‘HR Documents’ section of the Staff Channel. Questions on this policy should be initially directed to HR Reception on 0161 2952121 or -

Version History

Version number: / Date: / Nature of Change (reasons/comments)
Version 1 / 1 Nov 2010 / Revised policy.
Version 2 / 25 Nov 2010 / Revised policy
Version 3 / 6 Dec 2010 / TU Consultation
Version Final / 9 Dec 2010 / TU Consultation
Revised Version 1.1 / 25 April 2013 / Amendments following legislative changes
Revised Version 1.2 / 1st July 2013 / Amendments following discussions with trade unions
Scope & purpose of policy: / It is the policy and intention of the University, within the financial, economic and operational contexts which apply at any time, to seek to maximise job security for all employees within the organisation.
The University will endeavour to avoid the need for redundancies; however, circumstances may arise under which it is necessary to make staff reductions, including by redundancy. In the event that this situation occurs, the following policy and procedure will be adopted.
This procedure is in place to ensure a fair, equitable and transparent process for all employees affected by organisational change.
Policy start point: / Not applicable
Procedure end point: / Not applicable
Compliance: / This policy and procedure is compliant with statutory legislation requirements. Responsibility for implementation of the policy is outlined below.
Who this policy applies to: / This procedure applies to all University staff, with the exception of casual staff employed for a maximum of 13 weeks by the University and staff on fixed term contracts. This procedure does not apply to those who are not employed by the University, for example, agency staff or contractors.
Policy users: / ·  The Management team within the University will be responsible for implementing the policy in a fair and consistent manner
·  All employees will be responsible for engaging with and adhering to this policy.
·  Trade Unions will be responsible for engaging with and adhering to this policy
·  Human Resources Division will be responsible for ensuring compliance with this policy and procedure and providing guidance and direction

1.  Detail of Policy

1.1.  Policy Overview
The University is committed to maximising job security for its employees; and will seek to avoid wherever possible situations which may result in potential redundancy situations arising, by planning effectively to meet current and future staffing needs. There may, however, be occasions when financial pressures, changes in the demand for services, funding provision, or organisational, technological or academic developments impact on staffing requirements. In such cases the University is committed to minimising the effect of redundancies by seeking redeployment opportunities as appropriate and by adopting a fair, sensitive and consistent approach.
This policy and procedure sets out the principles that will be adopted in all cases of potential redundancy.
1.2.  General Principles
1.2.1.  It is expected that all organisational change programmes which may potentially result in a proposal for redundancy will be aligned to the University’s vision and strategic goals.
1.2.2.  The University will ensure that a fair and equitable approach is taken throughout this process.
1.2.3.  The University will endeavour to avoid compulsory redundancies wherever possible
1.2.4.  The University will endeavor to mitigate the potential risk of redundancies by making sure that there is effective financial, service, and people management and planning.
1.2.5.  The University, through its managers, will ensure that employees are effectively performance reviewed and developed to ensure that they have the necessary skill and capability to undertake their current role and respond to changing role requirements. In this respect, managers will be trained and developed, and have access to supporting toolkits.
1.2.6.  Employees will be encouraged to recognise and understand the organisational requirements which drive change. In addition, it is important for employees to be responsive, flexible and open to change.
1.2.7.  The University will actively engage and consult with Trade Unions and will ensure that reasonable and proportionate paid time off is provided to representatives for the discharge of their duties during redundancy consultation arrangements and in line with the Trade Unions’ Facility Agreement. Reasonable opportunity will be given to union representatives to consider the information provided, to seek clarification, or challenge assumptions and to put forward their own views or proposals in writing. The University will give these proposals proper consideration and answer them in writing explaining any changes to the original proposals, the reasons for rejecting any alternative proposals and confirming the final proposals.

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PART A – Avoiding/Mitigating Compulsory Redundancy

2.  Detail of Procedure

2.1.  Definition of Redundancy
A redundancy situation may occur where one of the following legal criteria is fulfilled:
·  The employer has ceased, or intends to cease, to carry on the business for the purposes of which the member of staff was so employed; or
·  The employer has ceased, or intends to cease, to carry on the business in the place where the member of staff was so employed; or
·  The requirements of the business for members of staff to carry out work of a particular kind has ceased or has diminished or is expected to cease or diminish; or
·  The requirements of the business for members of staff to carry out work of a particular kind, in the place where they were so employed, have ceased or diminished or are expected to cease or diminish.
2.2.  Consultation on Proposals for Organisational Change
The University is committed to entering into full and meaningful consultation with Trade Unions, employees and any employee representatives (if relevant) about any aspects of organizational change which may affect individuals. Consultation will be genuine and undertaken with a view to reaching agreement in terms of avoidance, reduction and mitigation of redundancies. In line with best practice, the University will enter into organisational level collective consultation meetings with Trade Unions at the formative stage to enable trade unions to inform any ultimate decision.
2.2.1. Collective Consultation Requirements
If the University identifies a situation where potentially 20 or more employees may be potentially made redundant, there is a legal requirement enter into collective consultation. Consultation will be entered into at an early stage, but will be a minimum of 30 days before the first redundancy where there are 20 to 99 proposed redundancies within a 90 day period; and 90 days in advance where there are 100 or more proposed redundancies in a 90 day period. Whilst the University will consult collectively as outlined above, individual employees who are potentially at risk of redundancy will also be consulted with on an individual basis.
For the avoidance of doubt, whilst individual consultation will apply where it is proposed that there are redundancies of less than 20 employees, where appropriate to union membership, the University is also committed to entering into 30 days consultation with the Trade Unions in these circumstances.
2.2.2. Disclosure of Information during Collective Consultation
The University has a statutory duty to disclose to the Trade Unions and affected employees the following information in writing in a timely manner:
·  The reasons for the proposals
·  Details of the relevant group/pool of employees who may be affected by the proposals
·  The number of employees from this group/pool that the University proposes will be dismissed for reasons of redundancy
·  Details of the proposals for the ways in which employees will be selected for redundancy
·  The period of time over which the process will take place
·  The proposed method of calculating the amount of any redundancy payment
The University will also provide notification to the Department for Business, Innovation and Skills when required in line with statutory legislation. A copy of the HR1 form will be provided to Trade Unions.
2.3.  Measures to avoid or minimise redundancy
The University will engage and consult with Trade Unions on plans which may potentially affect staffing levels. This will take place at the Partnership Working Group and will appear as a standing agenda item to ensure that consultation takes place on an ongoing basis in relation to University service/financial planning and performance. The University will engage with Trade Unions at an early stage when considering proposals for change and will ensure that additional meetings are scheduled, if required, to address specific change programmes. The University will disclose to the Trade Unions necessary and appropriate financial and historical information to ensure that informed consultation can take place. Where information is commercially sensitive, this may need to be provided in an abridged version and/or provided under a legally binding confidentiality agreement.
As part of this process, the following measures will be actively considered as a means of avoiding redundancies. This list is not prescriptive or exhaustive and is not in any order of priority:
·  A review of staff turnover rates to consider whether ‘natural wastage’ can help resolve the problem.
·  A reduction/elimination of overtime working
·  The introduction of a Vacancy Control process to ensure appropriate restrictions on permanent recruitment. Vacancies placed on hold to maximise the job security of existing employees may be filled on an interim basis either via internal secondment or by the appropriate use of temporary staff supplied by recruitment agencies. If necessary staff may be recruited on temporary contracts and it is acknowledged that, in line with the principles outlined in the Restructuring Principles Policy and Procedure, any employees on Fixed Term Contracts may be included in the relevant selection pool.
·  Investigating the possibility of voluntary early retirement and flexible early retirement (subject to pension scheme rules and appropriate University pension policies operating at the time).
·  Seeking alternative funding where funding for a particular project has expired.
·  Consideration of applications for part-time working and job sharing opportunities.
·  Collaborative working with external bodies to help secure alternative employment outside of the University i.e. secondments, redeployment and re-training.
·  Consideration of applications for sabbaticals, career breaks, charitable work, volunteering and unpaid leave.
·  Career planning to enable lateral moves, promotional and retraining opportunities.
·  Temporary work sharing proposals from those employees in affected areas.
·  Exploring other cost savings across the University.
2.4.  Redeployment
One of the key methods used by the University to avoid the need for redundancy is to actively pursue the redeployment of employees into other roles within the University. Please refer to the Redeployment Policy and Procedure for details of this.
2.5.  Voluntary Redundancy
It may be possible in certain circumstances to reduce, avoid or mitigate the need for compulsory dismissals due to redundancy by providing opportunities for employees to request consideration by the University of a request for Voluntary Redundancy.
When this option is made available, the University will consider requests (but is not committed to accepting all requests) for voluntary redundancy. Each application for voluntary redundancy will be determined according to costs in each case and impact on the performance of the University i.e. shortage of skills, skill-mix in affected areas. The University reserves the right to decline applications for voluntary severance.
Where volunteers are sought, payment will be under the relevant voluntary severance scheme in operation at the time. The voluntary redundancy payment will incorporate the employee’s statutory redundancy entitlement.
Where a payment is made under the Voluntary Severance Scheme, it is normal practice for the University to request that the employee enters into a compromise agreement. A compromise agreement is a legally binding document which allows both parties to agree terms on which to end the employment contract.Employees who are accepted for voluntary redundancy who are over 55 years of age and who are members of a pension scheme and have the requisite pension membership applicable to their pension scheme may have immediate access to their pension (subject to the rules of the scheme in force from time to time).
If an employee requests for Voluntary Severance they also have a right to continue to apply for suitable vacancies across the University as a redeployee in line with the Redeployment Policy & Procedure, provided that the closing date for any such vacancy is within the notice period. Should a vacancy close within the notice period, but the interview takes place following the leaving date, an employee will be eligible to attend the interview. However, the employee will finish working for the University on the specified leaving date and, in the event of being appointed, will not be paid for the period between the leaving date and the date of the new appointment.
If all of the measures outlined above have been applied and there is still a requirement for compulsory redundancy, the procedure outlined in Part B below will apply.

PART B – Compulsory Redundancy Procedure
2.6.  Compulsory Redundancy
If it is determined through consultation that it is not possible to avoid compulsory redundancies, the University maintains the right to apply its Redundancy Procedure. However, this procedure will be put in place only as a last resort once all avenues to avoid redundancy have been explored. Genuine consultation with the trade unions on ways to mitigate the need for compulsory redundancies will continue throughout this process.
2.6.1. Statutory Redundancy Payments
Where an employee is made compulsorily redundant i.e. chooses not to accept an offer of a voluntary severance payment, he/she will be entitled to receive statutory redundancy pay in line with the statutory scheme provided he/she has 2 years continuous service with the University.