4. Links to Other Policies Or Related Documentation

Policy and Procedure Document

Document Name: Avoidance of Redundancy/Redundancy Policy and Procedure

Ref & version no.: Final Status: Agreed Equality Impact In progress – first stage completed Assessment: 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 - [email protected]

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 It is the policy and intention of the University, within the financial, policy: 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.

Owner: HR Division Page 1 of 12 Author: HR Division Avoidance of Redundancy/Redundancy Policy & Procedure, version 1.2 1 July 2013 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 This procedure applies to all University staff, with the exception of applies to: 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

Owner: HR Division Page 2 of 12 Author: HR Division Avoidance of Redundancy/Redundancy Policy & Procedure, version 1.2 1 July 2013 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.

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

Owner: HR Division Page 3 of 12 Author: HR Division Avoidance of Redundancy/Redundancy Policy & Procedure, version 1.2 1 July 2013 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

Owner: HR Division Page 4 of 12 Author: HR Division Avoidance of Redundancy/Redundancy Policy & Procedure, version 1.2 1 July 2013 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

Owner: HR Division Page 5 of 12 Author: HR Division Avoidance of Redundancy/Redundancy Policy & Procedure, version 1.2 1 July 2013 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.

The Statutory Redundancy Payment is a lump sum payment dependent on age and length of service, up to a maximum of 20 years service. A multiplier determines the number of weeks pay due and is subject to the statutory maximum weekly pay cap. The following multipliers are used to calculate the number of weeks due:

For each full year of service where age during the year is less than 22 = 0.5 Owner: HR Division Page 6 of 12 Author: HR Division Avoidance of Redundancy/Redundancy Policy & Procedure, version 1.2 1 July 2013 week’s pay

For each full year of service where age during the year is between 22 and 41 = 1 week’s pay

For each full year of service where age during the year is 41+ = 1.5 weeks’ pay

The University may also at its discretion choose to pay an enhanced redundancy payment to all employees being made compulsorily redundant. This may differ from the Voluntary Severance Scheme in place at the time and from previous discretionary enhanced redundancy payments that may have been made (if at all). The detail of any changes would be subject to consultation with the recognised Trade Unions.

2.6.2. Selection of Employees for Compulsory Redundancy Where appropriate, and in consultation with the Trade Unions, employees ‘at risk’ of redundancy will be placed in selection pools to determine which employee(s) will be potentially selected for compulsory redundancy. The University will consult with the Trade Unions on proposed selection pools and the selection criteria which will be used to select for available roles. Employees will usually only be eligible to enter a selection pool for posts which are the same grade as their substantive post. Ring fenced assessments may apply in certain circumstances. Full information is provided in the Restructuring Principles Policy and Procedure. Employees ‘at risk’ of redundancy who are placed in a selection pool will normally be asked to undertake an assessment to determine which employee(s) will be potentially selected for compulsory redundancy. During the consultation process, the University will also consult with the Trade Unions on the assessments and criteria which will be used to select for available roles.

2.6.3. Notification to Employees Selected for Redundancy Employees will be identified as being selected for redundancy either following an assessment process, or where only one person is identified as being in the affected group, or where a whole section is closing and all employees in that section are affected. The employee identified will be notified in writing and invited to an individual consultation meeting. In advising an employee that they have been selected for redundancy, the University is not prejudging the outcome of individual consultation. The employee will enter into a period of individual consultation with the employee to fully discuss their selection for redundancy and the process going forward. During this period every effort will be made to mitigate the need for redundancy.

2.6.4. Individual Consultation The University will enter into individual consultation with employees selected for redundancy as outlined above. The individual consultation process will run concurrently with the collective consultation process. Individual consultation will normally be for a period of 30 days, dependent on any collective consultation requirements.

Employees will be invited in writing to attend individual consultation meetings and will have the right to be accompanied.The individual consultation meetings will take place with at least one of the managers who have been responsible for making the selection decision. A member of the Human Resources team will also be in attendance at the meeting.

Where the employee has participated in an assessment process, a written copy of the assessment against the selection criteria and any other relevant documentation

Owner: HR Division Page 7 of 12 Author: HR Division Avoidance of Redundancy/Redundancy Policy & Procedure, version 1.2 1 July 2013 will be provided in advance of the meeting. The employee should be given the opportunity to ask any questions and make any comments or representations concerning the assessment process and the manager will seek to respond either within the meeting or afterwards. The employee will also be given the opportunity to make any comments or representations regarding the decision to select them for redundancy. The employee can also discuss any queries they may have about the redundancy process in general. A record of the meeting will be kept.

Following the meeting, and having listened to the employee and taken account of any representations made, including undertaking further investigation if necessary, a further individual consultation meeting will be held to provide a response to the queries raised. A number of meetings may be held during this individual consultation period, and opportunities for redeployment and other ways in which to mitigate the need for redundancy will be explored.

At the conclusion of the individual consultation period, a decision will be taken by the appropriate managers as to whether the employee is to be dismissed by reason of redundancy. HR must be consulted with before an employee is advised of the decision to ensure that necessary legal obligations are complied with.

If the decision is to dismiss, the employee will be advised in writing by the manager responsible. The letter will give the decision taken to dismiss on the grounds of redundancy and the reasons for it. The letter will also state the period of notice which will apply and when this will be served; any entitlement to a redundancy payment (the individual will be free to choose whether or not to take any available enhanced voluntary severance payment or statutory redundancy payment terms) and advise, where appropriate, of their right of appeal against dismissal.

2.6.5. Notice Periods Notice periods will be either contractual or statutory whichever is the greater and employees will normally be required to work their notice and take any outstanding annual leave during the notice period. The University will consider requests from individuals asking to leave before the end of their notice period where business needs allow and individuals will be paid up to and including this date. Where the University has requested that an individual leaves before the notice period ends, the individual will receive any outstanding entitlement to payment in lieu of notice subject to normal tax and NI. Payment will be made in the final salary.

A member of staff who has been given notice of dismissal due to redundancy is entitled to reasonable time off with pay to look for another job or make arrangements for future training or employment during his/her period of notice. Time off should be agreed in advance with their line manager.

2.6.6. Appeals Where an employee wishes to appeal against dismissal by reason of redundancy (there is no right of appeal if the employee chooses voluntary severance terms), they should do so in writing to the Executive Director of Human Resources within 10 working days of receipt of the written notice of dismissal. The member of staff should set out in full the grounds for the appeal. These could include the following (this list is not exhaustive):  The procedure has not been followed correctly.  Significant new information in connection with the assessment process has emerged since the original meeting.  The affected group of staff has incorrectly been identified.  Disagreement on the application of the selection criteria

Owner: HR Division Page 8 of 12 Author: HR Division Avoidance of Redundancy/Redundancy Policy & Procedure, version 1.2 1 July 2013 The appeal will be heard by a panel of 2 senior managers with relevant experience, both of whom will have had no previous involvement in the decision to dismiss the employee and therefore will be independent. The employee will be invited in writing to attend the appeal hearing and will be advised in advance of the name of the managers who will be hearing the appeal. A member of the Human Resources Division will also be in attendance at the meeting. The appeal will be heard on a mutually convenient date normally within 10 working days.

The managers hearing the appeal will confirm their decision in writing, stating the reasons for it, within 10 working days of the hearing. The managers hearing the appeal can either confirm the decision to dismiss, or revoke the decision and reinstate the member of staff. This is the final stage in the procedure and the member of staff has no further right of appeal.

2.6.7. Right to be accompanied At all meetings held in accordance with this policy, an employee may be accompanied by a companion who may be a fellow member of staff or Trade Union representative. The chosen companion will be allowed to address the meeting in order to put the employee’s case, sum up the employee’s case, and respond on behalf of the employee to any view expressed at the meeting. The companion does not have a right to answer questions on the employee’s behalf. The employee is requested to give notice of the name and relevant details of any companion to a nominated member of the Human Resources team. It is the employee’s responsibility to notify their representative of the arrangements for the meeting, and to ensure that they have all of the relevant paperwork.

If the employee cannot attend on the date proposed and a suitable alternative companion cannot be found then a mutually convenient alternative date should be organised as a priority, normally within five working days of the original date set (exceptional arrangements may be needed during holiday periods and should not exceed 10 working days).

The employee should make all reasonable efforts to attend any meeting to which they are invited under this procedure. In the event of failure to attend or make reasonable efforts to attend the alternative meeting date arranged, the meeting may be held in their absence.

At the discretion of the manager and HR division, an employee may be allowed to bring a companion who is additional to a fellow member of staff or union official (for example, a family member) where this will help overcome a particular difficulty caused by a disability, or where the member of staff may have difficulties understanding English.

2.6.8. Grievance or Complaints Regarding the Redundancy Procedure If an employee has a grievance or complaint about the decision to select them for redundancy or if they wish to challenge the procedure, the meetings and appeal process detailed within this procedure will be used to investigate and deal with the complaint and not the University’s grievance procedure. The purpose of this is to assist all parties by allowing any complaint to be considered expeditiously and avoid multiplicity of procedures and any associated delay. It may be that in order to hear the complaint, the application of the procedure may require modification to facilitate this, for example it may be appropriate for another manager to be involved in the process rather than the manager(s) who would ordinarily conduct the meetings under this procedure.

2.6.9. Employees not selected for Redundancy Employees within the selection pool who were ‘at risk’ of redundancy but have not been selected for redundancy should be advised in writing that although not Owner: HR Division Page 9 of 12 Author: HR Division Avoidance of Redundancy/Redundancy Policy & Procedure, version 1.2 1 July 2013 selected for redundancy at this stage, the position could change as a result of consultation with, or appeals by, employees who have been advised that they have been selected for redundancy.

2.7. Suitable Alternative Employment The University will seek wherever possible to redeploy staff selected for redundancy into positions considered to be suitable alternative employment. This will be in accordance with the Redeployment Policy and Procedure. Positions that attract broadly the same terms and conditions of employment or that are not substantially different are considered suitable alternative employment. However, each situation must be considered on a case by case basis, as there may be a need to take into account relevant personal circumstances.

Where an employee accepts suitable alternative employment, a trial period of a minimum of 4 weeks will apply. In exceptional cases this may be extended to a maximum of 16 weeks by mutual agreement and in writing.

This period is to enable the member of staff and the University to decide if the new position is suitable without the individual losing the right to the entitlement to redundancy pay during this period. During the trial period both parties should raise any concerns regarding the role/role holder as soon as possible to ensure problems are resolved quickly. At the end of the trial period a meeting will be held to confirm the employee in post or alternatively, to discuss the termination process. If the employee continues to work in the new job beyond the trial period, he/she is deemed to have accepted the new employment, unless otherwise stated.

2.8. Employees need to be aware that should they unreasonably refuse an offer of suitable alternative employment they may lose their entitlement to redundancy pay.

Other Forms of Assistance

The University, at its discretion, may choose to offer additional forms of assistance to members of staff to be made to be made redundant in the form of re-training assistance, outplacement services and other forms of career support.

2.9. Re-employment following Redundancy The University will not consider the re-employment of any employee within a 12 month period except in cases where the role applied for is significantly different from the role made redundant. The new role must be identified as a genuine vacancy and advertised externally.

Those returning to the University within a two year period of receiving voluntary severance may be required to pay back a proportion of the enhanced severance payment to the University. The pro-rata calculation shall be made on a month by month basis for the two year period.

2.10 Management of employees on extended absence If individuals are temporarily absent from work then they should be managed and consulted on equal terms with those employees who are not absent.

Extended absence includes:  Maternity leave

Owner: HR Division Page 10 of 12 Author: HR Division Avoidance of Redundancy/Redundancy Policy & Procedure, version 1.2 1 July 2013  Adoption leave  Sick leave  Career break  Secondment to an external organisation  Sabbaticals If individuals are absent for any of the above reasons, they will be considered as members of the business area in which they worked when their leave started.

2.11 Equality Impact Assessments The University will ensure that Equality Impact Assessments are undertaken at the start of specific change programmes and will consult with the Trade Unions with regards to these assessments to ensure prior consideration is given to any disproportionate effect on any particular sector of the organisation. The University will continue to review Equality Impact Data with the Trade Unions throughout the course of any change programme which may impact on employees.

3. Process Maps To be published

4. Links to Other Policies or Related Documentation 4.1. Other Policies  Restructuring Principles Policy and Procedure  Redeployment Policy and Procedure  Voluntary Severance Scheme  Salary Protection

5. Appendices Appendix A: Glossary of Terms Collective Consultation: Consultation which takes place with the recognised Trade Unions and the University regarding any proposals for change which may impact on staffing. Dependent on the number of roles ‘at risk’ of redundancy, this will be for a minimum period of either 30 or 90 days. Individual Consultation: Individual consultation will run concurrently with collective consultation. The meetings will be held between an individual and managers from the University. The employee has the right to be accompanied to the meeting.

Individual consultation will normally be for a period of 30 days, dependent on any collective consultation requirements.

‘ At Risk’ of This term applies to employees whose posts have changed sufficiently to be classed as new (“new posts”), or whose posts Owner: HR Division Page 11 of 12 Author: HR Division Avoidance of Redundancy/Redundancy Policy & Procedure, version 1.2 1 July 2013 Redundancy: have not substantially changed or have not changed at all but there is a decreased requirement for the number of employees to carry out the role (“posts not substantially affected by change”). In relation to positions defined as “new posts”, and when there is a decreased requirement for the number of employees to carry out a role, a selection pool may be determined which will give employees, affected by change, the opportunity to apply on a ring fenced basis. Selected Individuals whose posts have been removed or who have been for Redundancy: unsuccessful following a ring fenced selection process within a defined pool will be advised that they have been selected for redundancy. The individual will then be subject to a 30 day individual consultation period during which the University will seek to mitigate the need for redundancy. At the end of the period, a decision will be made as to whether or not the employee is to be dismissed by reason of redundancy. Individual consultation will run concurrently with collective consultation, dependent on any collective consultation requirements .

Owner: HR Division Page 12 of 12 Author: HR Division Avoidance of Redundancy/Redundancy Policy & Procedure, version 1.2 1 July 2013