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Urgent

By E-mail

Circular No: 2015/017

20 January 2015

Dear Principal

RE: STRATEGIC COST REDUCTIONS – SCHOOL BASED TEACHING REDUNDANCIES - 2015/16

In recent years the Minister has provided substantial resources to fund teacherredundancy costs across the Education sector as part of a cost reduction programme to assist schools to reduce their cost base, through a reduction in their full-time equivalent (FTE) staff numbers.

The current financial environment undoubtedly presents challenges which will make it necessary to identify a number of teaching redundancies in order to make the quantum of savings necessary. However, given the additional funding that the Minister has secured as part of the final budget settlement, it is likely that the scale of redundancies will be less than originally anticipated. The Minister is currently considering final budget allocations. Also, as you are aware, the Executive has set aside a central fund to meet the cost of public sector severance in 2015/16; however, at this stage it is not clear the level of funding which will be available to Education.

This letter outlines the steps to be taken in relation to school based teaching redundancies with effect from 31 August 2015. Separate communication will issue in relation to the non-teaching staff, as the nature of these posts dictates that the effective date for these redundancies may not be 31 August 2015.

However, in order to manage expectations please be advised no assurances should be given to teachers at school level that redundancy will be progressed until the applications are appraised and the Department of Education provides formal approval.

Compensation Terms

The Board will be in a position to pay teachers made redundant total compensation which is up to twice the amount of statutory calculation of weekly entitlement, that is up to a maximum of 60 weeks actual salary. For example, where a teacher is eligible for redundancy compensation of 28 weeks’ salary he/she will receive an additional 28 weeks’ salary as an enhanced severance payment giving total compensation of 56 weeks’ salary.

Total compensation payable to any teacher will not exceed up to 60 weeks’ salary. Teachers receiving an enhanced severance payment will have to wait until normal pension age (60) to draw their pensions (or may opt to draw an actuarially reduced pension if aged 55 to 59).

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Please note the Department of Education has advised, as there is no guarantee that funding will be available to allocate compensation at this level in future years, this enhancement will apply to teacher redundancies at 31 August 2015 and it will not apply to any redundancies after this date.

Criteria

The Board will be required to submit proposals to the Department in order to secure approval for the related redundancy applications.

Funding will only be given where all of the following criteria are met:-

(i)School is managing a challenging financial position - As this is a cost reduction exercise that posts declared redundant are within schools managing a challenging financial position[1], as evidenced in the budget element of their 3 Year Financial Plan.

(ii)It is a bona fide redundancy; that is, that the post is being suppressed and WILL NOT be refilled at a later stage;

(iii)Genuine reduction in FTE[2], not to be increased at a later date; and

(iv)The payback period is clearly demonstrable (up to 2 years for school based teaching staff);

Prioritisation of Teaching Redundancy Applications

Given the current budgetary constraints it will be necessary to prioritise redundancy applications that are considered to meetall of the above criteria, subject to availability of funding.

As such, DE has confirmed that teaching redundancy applications that meet all of the above criteria will be prioritised as follows:

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Priority 1 / Schools that are in a Closure / Amalgamation situation with a Development Proposal which has been approved by the Minister of Education (closing or amalgamating in August 2015), or coming out of a collective agreement in August 2015.
Priority 2 / Schools that are presently in a challenging financial position (as evidenced by their financial plans) as at March 2015 i.e. schools in deficit of -£75k or
-5% whichever is the lesser
Priority 3 / Schools that are projecting a challenging financial position (as evidenced by their financial plans) as at March 2016 i.e. schools in deficit of -£75k or
-5% whichever is the lesser
Priority 4 / Schools that are projecting a challenging financial position (as evidenced by their financial plans) as at March 2017 i.e. schools in deficit of -£75k or
-5% whichever is the lesser

In advance of submitting proposals to the Department, the Board is required to carry out a robust and meaningfuldue diligence review regarding the above criteria. Once satisfied that allof the criteria have been met, assurance statements will have to be completed at Board level.

Following the approval and funding of the above priorities (1-4), should the availability of funding permit, applications in respect of schools projecting a deficit position at March 2018 may be considered, ieprioritised on the basis of greatest need.

Managing Teachers’ Expectations

It will be important for schools to manage teachers’ expectations for their release through this cost saving programme. At the outset of the process teaching staff must bemade aware that their release will be subject to DE approvaland that such approval will be prioritised as detailed above.

Please be advised, no assurances should be given to teachers at school level that redundancy will be progressed until funding is approved by DE.

Process

In order for teaching redundancy applications to be fully considered, schools must complete and submit a Board of Governors Assurance Statement to the Board by Friday 6 March 2015. A copy of the Board of Governors Assurance Statement is attached. This will allow the Board to submit proposals to the Department of Education for approval.

Any communication to individual teachers, including protective notice, will clearly identify that any release will be subject to Department of Education approval.

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If it has been identified that you must make a redundancy, you must proceed strictly in accordance with the process detailed in the Procedure for Handling Teacher Redundancies (TNC 2010/1 Revised December 2013). A copy of this is available to download from the Board’s website –‘ – Schools – Information for Principals’ or from the Human Resource Branch.

Furthermore, please notify Cushla McAtarsney or Keith Farrell, in writing, of the number of anticipated redundant teaching posts in your school at 31 August 2015 by Friday 30January 2015.

The Board and Department of Education recognise the difficulties presented by this tight timeframe. Your co-operation is essential to enable the Board to maximise this additional funding and charge the expenditure to the 2015/2016 financial year.

In order to meet these timescales it is important that the process is commenced with immediate effect.

All enquiries regarding teaching redundancies should be directed, in the first instance, through the Principal.

Advice is available on handling teaching redundancy as follows:

Cushla McAtarsneyKeith Farrell

Human Resources ManagerHuman Resources Manager

Tel: 02837 512220 – direct lineTel: 02837 512416 – direct line

E-mail: -mail:

Yours faithfully

Robbie McGreevy

Head of Human Resources

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[1]Schools Managing a Challenging Financial Position: Prioritisation of redundancy applications will be applied as follows:

1.Schools that are in a Closure/Amalgamation situation with a Development Proposal which has been approved by the Minister for Education (closing or amalgamating in August 2015), or schools coming out of a collective agreement in August 2015.

2. Schools Managing a Challenging Financial Position, ie those with a deficit of -£75k or -5%, whichever is the lesser, at 31 March 2015

3. Schools Managing a Challenging Financial Position, ie those with a deficit of -£75k or -5%, whichever is the lesser, at 31 March 2016

4. Schools Managing a Challenging Financial Position, ie those with a deficit of -£75k or -5%, whichever is the lesser, at 31 March 2017

2.Genuine reduction in FTE: that the overall FTE of the school decreases in line with the number(s) of posts declared redundant (eg 2 redundancy applications, FTE staffing level to reduce accordingly by 2) and that the FTE will not be increased at a later date without Employing Authority and Departmental approval. (The teaching FTE must not increase on a temporary/substitute basis, even through NISTR, prior to obtaining said approval).