Redundancy policy
Introduction
This policy sets out the general definitions of redundancy, alternatives to redundancy, consultation and announcement steps. Alongside related guidance notes, it is designed to help manage redundancies successfully.
The procedure described applies to the redundancy of any posts except those involving Fixed Term Contracts (FTC), where the reason for the redundancy is the end of the term. The procedure records the steps to be taken if a redundancy situation is threatened or occurs which affects Commission employees.
Back to top
General principles, aims and definitions
Under section 139 of the Employment Rights Act 1996, as amended, an employee is "taken to be dismissed by reason of redundancy if the dismissal is attributable wholly or mainly to:
- the fact that his/her employer has ceased, or intends to cease, to carry on the business for the purposes of which the employee was employed by him, or has ceased, or intends to cease, to carry on that business in the place where the employee was so employed, or
- the fact that the requirements of that business for employees to carry out work of a particular kind, or for employees to carry out work of a particular kind in the place where s/he was so employed, have ceased or diminished or are expected to cease or diminish."
However, there is a wider definition of redundancy for consultation purposes. Under section 195 of the Trade Union and Labour Relations Consolidation Act 1992, "the references to dismissal as redundant are references to dismissal for a reason not related to the individual concerned or for a number of reasons all of which are not so related". These definitions apply to this agreement.
Management recognise the very harmful effect that redundancies can have on the efficiency of the organisation, and the potential hardship to the individuals affected. The following needs are recognised:
- full information must be provided to individual employees affected
- time must be made available to make representations which must be fully considered before a final decision is taken
- close co-operation between management, Staff Side and the recognised Trade Union at all stages of the redundancy process, in accordance with the provisions of section 188 of TULR(C)A 1992, as amended.
In considering how to resolve a possible redundancy situation, there are two main principles to be followed:
- the need to maintain the efficiency and quality of the work at all levels of the organisation, and to carry out the required work programmes
- the need to minimise the hardship for employees.
Back to top
Procedures, guidance and pre-redundancy measures
The detailed procedures to be followed in a redundancy situation are set out in the Redeployment and Redundancy guide. Guidance on procedures can also be found in the associated guidance notes on redundancy selection criteria.
Management must consider ways to avoid redundancies wherever possible and, if redundancies are unavoidable, to minimise the numbers. The following pre-redundancy measures must be considered:
- achieving some/all of the required reductions through natural wastage
- restricting or suspending external recruitment
- reviewing the use of agency staff
- reducing overtime
- recalling sub-contract work where practicable
- inviting volunteers for part-time or job share work
- redeploying and retraining employees
- transferring work between offices.
Back to top
Consultation with the Trade Union and Staff Side
When the Commission is faced with funding pressures or changed work priorities leading to the prospect of redundancies, the Trade Union and Staff Side representatives will be advised of the position at the earliest opportunity and consultation will take place in accordance with the procedures set out in the Redeployment and Redundancy guide. The information given to the staff representatives during the consultation process will include the selection criteria being used to select the posts to be lost, the related selection matrices and the intended selection "pool(s)". Staff representatives will be given an opportunity to comment on this information before it is finalised (see below). Management must also provide information about their efforts to apply the pre-redundancy measures referred to above.
Following the meeting with the staff representatives at which information about post losses is first disclosed; the Trade Union and Staff Side will be given a minimum of 10 working days to consider ways in which the redundancies in question might be avoided. Where possible, management will present their proposed selection criteria and pools at this meeting, but if this is not possible, further formal consultation meetings will be arranged.
At the end of the initial 10 (working) day specified consultation period, a second meeting will be held to consider the matter further. The aim will be to reach agreement on:
- ways of avoiding post losses and compulsory redundancies
- mitigating the consequences of the redundancies and, where available at that stage
- the selection criteria, matrices and "pools".
At any point where potential post losses are identified, Deputies in consultation with the Trade Union and Staff Side representatives, will (subject only to consideration of the provisions of the Redeployment and Redundancy guide), consider making an organisation-wide or limited call for volunteers for redundancy. Management and the Trade Union and Staff Side representatives may also seek to identify confidentially employees who would be interested in voluntary redundancy.
There may be occasions where the recognised Trade Union and/or Staff Side may make separate responses and require separate meetings.
Back to top
Consultation with individual employees
Formal consultation with individuals at risk of redundancy will take place after consultation with the Trade Union has taken place, including consultation about selection criteria, selection matrices and selection pools. Consultation with these individuals should begin when consultation with the Trade Unions and Staff Side ends.
A series of separate consultation meetings will be held with individuals who are identified as at risk of redundancy through the selection process outlined above. During this process, which is set out in the Redeployment and Redundancy guide, the individual will be informed in person and in writing of the situation. The written information will:
- explain why the establishment’s requirements for the work have ceased or diminished (justifying a post loss) and give the full reasons for the preliminary identification of the individual as redundant, including the details of the selection criteria used. Where the individual has been selected from a group of employees undertaking broadly similar work, the relevant selection matrix will be provided
- set out any preliminary consideration for redeployment
- provide an estimate of redundancy compensation and a copy of this policy.
The Trade Union and Staff Side representatives will be notified, when the formal consultation process begins, so that the necessary support and guidance can be given to individuals. The affected individuals will have the right to be accompanied by a trade union representative or work colleague at any meetings to discuss the redundancy proposal.
A minimum of 10 working days will be allowed for individual consultation. This will allow the individual to make representations about their possible redundancy and/or to suggest ways in which the redundancy could be avoided. However, recognising that it may not always be possible for an individual to respond within the timescale specified, management should give as much time as reasonably possible for this consultation to take place.
Any representations made by the individual will be taken into account before a final decision is made by management as to which posts must be lost and which employees must be declared redundant.
Following completion of the above actions, formal notice of redundancy will be issued; the individual will have the option (a) not to contest their redundancy (b) to lodge an appeal and/or (c) to seek redeployment. Volunteers for redundancy cannot retract their wish to be made redundant once they have been given formal notice of redundancy.
Back to top
Announcement of redundancies
The Trade Union and Staff Side representatives will be informed prior to issuing formal notice of redundancy to the employees affected.
Back to top
Appeals
Any employee who is dissatisfied either by a decision to declare their post redundant or against selection for redundancy may appeal to the Commission. Appeals should be made, in writing, to the Head of HR, within five working days of being notified of the decision to dismiss them by reason of redundancy.
The appeal may relate to:
- unfair selection for redundancy
- failure of the organisation to follow the redundancy procedure
- discrimination, or
- the dismissal itself.
The appeal hearing will be held with the employee who may be accompanied by a trade union representative or work based colleague but not someone who is acting in a professional capacity as a legal adviser. The outcome of this meeting will be confirmed in writing within five working days. The meeting must be held before notice of redundancy is served.
The appeal will be heard by a panel of three Commissioners or Deputies who have not been involved in the decision making process in relation to the employee’s dismissal. The panel will be advised by the Head of HR (or his/her representative).
During the appeal process, the contractual period of notice shall continue to run from the original date of notification.
If the appeal is unsuccessful and a redundancy decision is confirmed, employment will end on the date specified in the original written notification of the decision to dismiss for reasons of redundancy.
If the appeal is upheld, the outcome will depend upon the circumstances of the case; it is possible that the staff member will to re enter the selection process.
Back to top
Maternity and redundancy
Without affecting the rights of employees set out elsewhere in this policy, all redundancy cases involving maternity or pregnancy will be treated in accordance with the Maternity Leave Policy in the section on redundancy. If an employee on maternity leave is to be made redundant (for whatever reason) and there is a suitable vacancy, the employer must offer it first to the woman on maternity leave.
Back to top
Periods of notice
Notice periods are as specified in the Redeployment and Redundancy guide. Compensation in lieu of notice (CILON) may be payable in some circumstance (see Redeployment and Redundancy guide).
Back to top
Compensation
The compensation available to those being made redundant can be found in Annex 5.
Outplacement
The Commission will provide reasonable assistance to staff under notice of redundancy (see Redeployment and redundancy guide).
Back to top
Head of HR
November 2010
Date Updated: 04/04/11