POLICY TITLE: Redundancy Policy Committee/Person Responsible for Policy: Governing Body Date Approved by Governing Body: February 2017 Date of Last Review: February 2017 Next Review Due: February 2018 Introduction Whilst it is the governors intention to develop and expand the activities of the Academy and thus provides a stable work environment and reasonable security of employment for its employees, it is the governors responsibility to ensure the economic viability of the Academy in an increasingly competitive environment. Circumstances may arise where changes in the market, technology, funding, organisational requirements and the like, make it necessary to seek reductions in staffing levels leading to subsequent redundancies. In order to minimise the impact of such reductions, the following procedure will be adopted wherever possible. Procedure Where the possibility of a reduction in the size of the workforce arises, the governors will take all reasonable steps to avoid compulsory redundancy and will enter into consultation with employee representatives with a view to establishing whether the reduction can be achieved by other means. Consideration will be given to any options identified subject to the efficient operation of the Academy. For example: Imposing an immediate ban on further recruitment of new staff other than where this is essential to the efficient functioning of the Academy; Considering redeployment and/or retraining of appropriate personnel; Inviting applications for consideration for early retirement and/or voluntary redundancy/severance. Sufficient information will be given to unions and employee representatives to allow meaningful consultation to take place, including: reasons for the proposals; numbers and description of posts/employees to be made redundant; total number of employees of such description; proposed method of selecting employees; proposed method of carrying out dismissals and timetable; Page 1 of 7
proposed calculation of any redundancy payments to be made. Representatives of the Staff Dismissal Committee or the Headteacher, if exercising delegated powers of dismissal, will consult with employee representatives over the selection criteria to be adopted and will seek to agree these (appendix C). The Headteacher will prepare a written review of the staffing structure and (if relevant) of the curricular needs at the Academy and provide copies to employee representatives. Where, after due consideration of any alternatives and of any information sought of individual employees, there appears to be no alternative to redundancy, a provisional selection will be made by the Staff Dismissal Committee or the Headteacher if exercising delegated powers of dismissal. Such selection will be made taking account of the criteria determined by the Committee, which will be non-discriminatory on grounds of gender, race, disability, sexual orientation, religion, belief or Trade Union activity/affiliation and, which avoid discrimination on grounds of age and marital status. All decisions will be subject always to the Academy s needs at the time. As far in advance of the proposed termination date as possible all employees concerned will be notified of the compulsory redundancies that are proposed and that provisional nomination has been made. It should be stressed that such nomination is provisional only and may be subject to change. The Headteacher will then enter into immediate consultation on an individual basis with those employees provisionally selected for redundancy. In the course of consultation employees will be informed of the basis of their provisional nomination and be given the opportunity to make representations on their potential redundancy. The Headteacher will provide any employee selected for redundancy with a written analysis of why their post was selected and with any other relevant documents on which the decision was based. The Staff Dismissal Committee or the Headteacher if exercising delegated powers of dismissal will invite employees to make written and oral representations to them against their recommendations and will give full consideration to any such representations before confirming their nomination for redundancy. An employee nominated for redundancy by the Staff Dismissal Committee or the Headteacher, if exercising delegated powers of dismissal, has a right of appeal to an appeal committee of the governing body. Such appeal should be lodged by the employee notifying the clerk to governors as soon as possible after notification of their selection for redundancy and normally within 7 days of such notification. Where selection has been confirmed and any appeal rejected or where no appeal is lodged, those selected for redundancy will be given notice of termination in accordance with both statutory and contractual entitlements. The governors will make every effort to seek alternative employment within the Academy and, where this exists, to consider redundant employees for suitable vacancies. All redundant employees, named in the business case, will be interviewed individually by the Headteacher to inform them of any available vacancies, to establish individual requirements and to consider employees suitability for particular jobs. In the course of individual consultation employees will also be Page 2 of 7
informed in writing of any entitlements they may have to redundancy compensation in accordance with the statutory and any enhanced redundancy payments scheme. Where alternative vacancies are offered to redundant employees the terms and conditions which will apply will be in accordance with the standard terms for the job in question. Redundant employees who accept alternative employment with the Academy will be entitled to a trial period. Subject to the Academy s operational needs, employees will be given permission to take time off work during their notice period to look for work or seek re-training opportunities in accordance with the Employment Rights Act 1996. Requests for time off should be made in the first instance to the Headteacher. The Academy will also endeavour to assist employees for whom alternative work cannot be found in the Academy to find other employment outside the Academy. Provision of reasonable resources, e.g. typing, stationery etc. will also be made available to employees. Compensation for loss of employment due to redundancy will be at least in accordance with statutory entitlement laid down in the Employment Rights Act 1996. Currently, statutory redundancy payments are based on an employee s age and length of service; however the Academy will follow the Somerset County Council model. The redundancy ready reckoner is attached as Appendix A. Appendix B gives examples of how to use the ready reckoner. All employees who receive redundancy payments will be given a written notification of the way in which their redundancy pay has been calculated. Page 3 of 7
APPENDIX B FINANCIAL COMPENSATION PACKAGES 1. Redundancy Compensation Payments 1.1 This policy applies to all staff that have two or more years continuous service. This does not form part of the terms and condition of the employment contract and the council reserves the right under the above named regulations to change its compensation payments policy from time to time. 1.2 Voluntary Redundancy The compensation payments for those who have expressed an interest in and accepted voluntary redundancy is calculated as follows: actual weekly salary multiplied by the number of weeks entitlement under the statutory redundancy formula. There is a cap of 30 weeks of normal weekly pay. 1.3 In line with the Councils Pension Discretions Policy, employees who are paid a compensation payment above their statutory redundancy entitlement, and who are members of the Local Government Pension Scheme, are given the option of converting any compensation payment over and above the statutory redundancy entitlement into additional pension. The maximum additional pension that can be purchased will be that specified in the Pensions Regulations, which will be increased each April under Pensions Increase Orders. The maximum at April 2014 is 6,500 per year. Note: Employees considering this option are responsible for seeking guidance from Peninsula Pensions on how this affects their benefits. 1.4 Compulsory Redundancy The compensation payments for those whose employment is terminated on the grounds of compulsory redundancy is up to the statutory maximum weekly pay, calculated as follows: actual weekly salary up to the statutory maximum weekly pay multiplied by the number of weeks entitlement under the statutory redundancy formula. This is capped at 30 weeks of statutory weekly pay. The payment is subject to a minimum 1500 (pro rata for part-time employees). In line with the Councils Pension Discretions Policy, where employees are paid compensation at the minimum of 1500 and where this is above their statutory redundancy entitlement, the employees, who are members of the Local Government Pension Scheme, are given the option of converting the compensation payment over and above the statutory redundancy entitlement into additional pension The maximum additional pension that can be purchased will be that specified in the Pensions Regulations, which will be increased each April under Pensions Increase Orders. The maximum at April 2014 is 6,500 per year. Note: Employees considering this option are responsible for seeking guidance from Peninsula Pensions on how this affects their benefits. Page 4 of 7
2. Early Retirement on Grounds of Redundancy 2.1 For a member of staff in the Teachers Pension Scheme to qualify for pension benefits, he/she needs to have reached the age 55 with at least 2 years pensionable employment at the date of redundancy. Alternatively, 5 years of pensionable employment as at the date of redundancy completed at any time is sufficient to qualify. In addition to pensionable employment, certain other types of service may count towards the qualifying period. In each of these scenarios the teacher must have obtained the Governing Body's approval for the payment of such benefits. 2.2 For a member of staff in the Local Government Scheme to qualify automatically for pension benefits, he/she must have reached the age of 55 with at least 3 months pensionable employment at the date of redundancy. 2.3 Examples of the financial packages available are provided later in this appendix. 3. Re-Employment 3.1 An employee's entitlement to a redundancy compensation payment is conditional on the employee not accepting an offer of new regular employment with Somerset County Council, another local council or a related employer before the date of redundancy. However this is only where the new employment starts within the four-week period immediately following the date of redundancy. An employee would disentitle themselves to the redundancy compensation payment if all of the following circumstances applied: (a) (b) (c) (d) the new employment is regular full or part time, i.e. not casual; the new employer is the Somerset County Council, another local council or related local government employer; please note this would include Academy or Free Schools; the offer of the new employment is made before the date of redundancy; and the employee starts work in the new post within four weeks following the date the redundancy took effect. 3.2 Notwithstanding the above statutory position, the Academy will seek suitable alternative employment opportunities for any member of staff who is facing redundancy. Failure to co-operate with the Academy on this regard and, in particular, an unreasonable refusal to accept an offer of suitable alternative employment may result in an employee forfeiting their entitlement to redundancy compensation. Page 5 of 7
APPENDIX B continued EXAMPLES OF FINANCIAL PACKAGES FOR REDUNDANCY FOR ACADEMY STAFF EXAMPLE 1 (Voluntary or Compulsory Redundancy) weekly salary is less than statutory maximum of 475 (as at 1 st April 2015) this figures is usually updated on 1 October each year A member of staff aged 42 with 12 years continuous service and earning 12,000 per annum at the date of redundancy. A redundancy compensation payment is payable equivalent to 12.5 weeks' salary (see table) 12,000* x 7/ 365 x 12.5 weeks = 2,877 (free of deductions). * for part-time staff this figure is the actual gross earnings per annum. EXAMPLE 2 (Voluntary Redundancy) weekly salary is more than statutory maximum of 475 (as at 1 st April 2015) A member of staff aged 48, with 26 years continuous service (maximum of 20 years counted for this purpose) and earning 35,000 per annum at the date of redundancy. A redundancy compensation payment is payable equivalent to 23.5 weeks salary (see table) 35,000* x 7/ 365 x 23.5 weeks = 15,774 (free of deductions). * for part-time staff this figure is the actual gross earnings per annum. EXAMPLE 3 (Compulsory Redundancy) The same member of staff aged 48 with 26 years' continuous service (maximum of 20 years counted for this purpose) with a full-time equivalent salary of 35,000 per annum who is made compulsorily redundant. There is a statutory weekly upper limit of 475 per week (as at 1 st April 2015) 475.00 x 23.5 weeks = 11,162.50 (free of deductions). * for part-time staff this figure is the actual gross earnings per annum. Any redundancy payment under the amount of 30,000 will be free of deductions. Page 6 of 7
APPENDIX C Selection criteria adopted by Governors 2014/15 The Governors adopted the following criteria to be used in deciding which employee(s) from within the pool is/are to be made redundant. This selection should be free from subjectivity to ensure that employees are treated fairly. Affected staff in a pool will be asked to complete a form, designed to provide current information about qualifications and experience. The following criteria should be applied: i) In terms of qualifications, experience, skills and expertise (level of and relevance to the post), and in the light of an objective assessment of the future needs of the Academy, which employees in the pool are the best able to make a continuing contribution to the Academy. ii) iii) iv) Standards of performance and contributions (only differences in standards between employees which can be objectively demonstrated to have operational significance should be used as a basis for comparison) e.g. performance appraisal information. The disciplinary record (only current relevant warnings to be taken into account). The attendance record (only where action has been, or is being, taken through the agreed procedure to address poor attendance). v) The prospects for redeployment within the academy. vi) vii) The suitability of and capacity for training/retraining. Where an employee is being considered for redundancy selection because of a change in the requirement for work, the prospects of finding a suitable person to meeting the changed requirements. Page 7 of 7