Redundancy Policy
Pre-January 2013
1. Purpose of the Policy
It is the aim of the University to ensure, as far as possible, security of employment and the avoidance of compulsory redundancies for its employees by means of effective forward planning. However, from time to time circumstances may make it necessary to consider reductions in staffing levels. In that event, the provisions of this policy shall be applied. Consultation with recognised Campus Unions shall be through the normal processes.
The circumstances in which the redundancy policy shall be used are set out below and the policy or restructuring shall not be used as an alternative to effective performance management.
This policy meets the requirements of all relevant employment legislation; notably, the Employment Rights Act 1996; the Fixed Term Employees (Prevention of Less Favourable Treatment) Regulations 2002; and the Employment Act 2002 (Dispute Resolution) Regulations 2004.
This policy applies to all staff, in all staff categories (except those covered by the provisions of the University´s Statutes), on both open-ended and fixed term contracts.
This policy was developed in consultation with the Campus Unions and was implemented with effect from 1 February 2005. This policy supersedes all previous arrangements, but does not affect the individual protection arrangements already in place for those members of staff who have been redeployed. This policy is supported by University Management Guidance Notes on Redundancy.
The purpose of this policy is to ensure that, wherever staffing reductions are considered necessary:
- all staff who are affected by the anticipation of a redundancy situation are given fair and equitable treatment.
- wherever practicable, redundancies are avoided; where this is not practicable, matters are handled in a fair and reasonable way and ways are sought to avoid compulsory redundancies through redeployment and an enhanced statutory redundancy payment option.
- so far as possible, changes are effected with the understanding and agreement of the recognised Campus Unions and all staff involved.
2. Definition of Redundancy
According to the statutory definition, as set out in the Employment Rights Act 1996, a redundancy occurs where a dismissal is wholly or mainly because:
- the employer has ceased, or intends to cease, to carry out their business for the purposes of which the employee is employed;
- the employer has ceased, or intends to cease, to carry on that business in the place where the employee was so employed;
- the requirements of that business for employees to carry out work of a particular kind have ceased or diminished or are expected to do so;
- the requirements of the business for employees to carry out work of a particular kind in the place where they were so employed have ceased or diminished or are expected to do so.
3. Consultation
The University, through line managers, and supported by the Department of Human Resources, shall undertake meaningful consultation with the recognised Campus Union representatives, with a view to reaching agreement on all matters covered by relevant legislation. The process which shall normally be followed is set out in the supporting management guidance notes and shall depend upon the prevailing circumstances.
Where it is not possible to avoid redundancy the requirements of legislation shall be met and a reasonable period of time shall be allowed for meaningful consultation to take place with staff and Campus Union representatives. The information disclosed shall be in writing and shall include:
- the reasons why staff affected may be at risk of redundancy;
- the names and departments, grades and descriptions of staff at risk;
and where there are 20 or more staff at risk:
- the total number and grades of employees of any such description employed by the University;
- the proposed method of selecting from the staff who are at risk.
The minimum consultation period will be in accordance with relevant legislation:
- where it is proposed that 100 or more staff are dismissed within 90 days or less consultation must begin at least 90 days before the first of those dismissals take effect;
- where it is proposed that between 20 and 99 staff are dismissed within 90 days or less consultation must begin at least 30 days before the first of those dismissals take effect.
Individual consultation with all staff affected will also take place and staff may be accompanied to meetings by a Campus Union representative or work colleague.
4. Enhanced Statutory Redundancy Payment Option
Where redundancies are unavoidable the University shall, in the first instance, endeavour to avoid compulsory redundancy by offering an enhanced statutory redundancy payment option and, depending upon the circumstances, by seeking volunteers. The mechanisms by which these might be achieved shall be considered as part of the early stages of consultation.
The University shall act in accordance with agreed procedures in the calculation of redundancy and pension payments.
At the point where a member of staff becomes at risk of redundancy they shall be advised in writing. They shall normally be invited to consider the option of an enhanced statutory redundancy payment according to an agreed payment scheme, as an alternative to redeployment:
- Where a member of staff confirms they shall opt for the enhanced statutory redundancy payment, entitlement to the provisions of the redeployment policy shall be forfeited.
- Where a member of staff confirms they shall opt to explore redeployment opportunities instead of the enhanced statutory redundancy payment, entitlement to the enhanced payment scheme shall be forfeited.
The member of staff shall have 10 working days to consider and confirm their preferred option, by which time they shall be expected to have completed the relevant documentation and returned this to the Department of Human Resources.
The University shall determine whether any applications for the enhanced statutory redundancy payment option can be made and accepted and reserve the right either not to offer or to refuse applications made where they are not in the interests of the department or the wider University.
Members of staff who choose to access provisions for redeployment and remain unplaced at the end of the redeployment period shall be subject to the terms of compulsory redundancy policy, which shall include the terms of the compulsory redundancy payment scheme. It should be noted that contractual notice periods shall run concurrently.
5. Redeployment
Where there continues to be a need to reduce staffing all staff affected who have confirmed they do not wish to apply for the enhanced statutory redundancy payment option shall be eligible to access the provisions of the Redeployment Policy.
Where the provisions of the Redeployment Policy are exhausted the terms of compulsory redundancy shall apply.
6. Compulsory Redundancy
Where there is a need for compulsory redundancy the process which shall normally be followed is set out in the supporting management guidance and shall depend upon the prevailing circumstances.
Any member of staff selected for compulsory redundancy shall be invited to a meeting with their manager and / or a representative from the Department of Human Resources to be informed and consulted on an individual basis, and shall have the right to be accompanied by a work colleague or trade union representative in any such discussions.
The University shall inform the recognised Campus Unions of the numbers and the proposed selection criteria (see below).
Compulsory redundancy payments will be based upon the Statutory Redundancy Payment calculation, as set out in the University´s agreed payment scheme.
7. Selection Criteria
If it is necessary to select from a group of staff a smaller number to be made redundant, staff and Campus Unions will be consulted at the earliest possible stage on the process to be followed and any criteria to be used, both of which shall be fair and transparent.
Selection criteria shall have regard to the number of redundancies necessary and be based upon the skills required to meet the current and future needs of the University. Criteria may include:
- Skills and experience relevant to the University’s current and future requirements;
- Qualifications relevant to the University’s current and future requirements;
- Attendance Record;
- Disciplinary Record (excluding spent action).
The University reserves the right to change or add to selection criteria, in the recognition that the criteria may need to be varied according to the prevailing circumstances, such as for differing staff categories and according to the roles undertaken. In these circumstances staff and Campus Unions shall be consulted regarding proposed changes or additions.
The process that shall normally be followed is set out in the supporting management guidance notes.
8. Redundancy Payments
Redundancy payments shall be calculated in accordance with the University´s agreed payment scheme, which complies with relevant legislation, taking into consideration the prevailing circumstances for the member of staff and the University.
Individuals shall be provided with details in writing of the redundancy pay which would apply in their case.
In cases of compulsory redundancy where staff are eligible to retire with a pension, and subject to the rules of the Superannuation Scheme, the University shall consider the possibilities of early retirement within the prevailing financial situation.
9. Appeals
A member of staff who is given notice of dismissal for reasons of redundancy may appeal against the decision to select them for compulsory redundancy. The appeal shall be in writing to the Assistant Director of Human Resource Management within 7 working days of written confirmation of the decision being issued to the member of staff.
The appeal process shall be in line with relevant employment legislation and shall include a meeting between the member of staff and the University to consider the appeal. The member of staff shall be entitled to be accompanied by a work colleague or trade union representative if they so wish.
The process which shall normally be followed is set out in the management guidance notes.
10. Notice of Dismissal
A member of staff dismissed on the grounds of redundancy is entitled to receive contractual or statutory notice, whichever is the greater.
11. Assistance to Staff at Risk of Redundancy
Staff at risk of redundancy shall be eligible to access University facilities to support their redeployment within the University or their identification of alternative employment outside of the University.
All staff working within their redundancy notice period will be given reasonable time off, in line with statutory requirements.
12. Early Retirement
Where a member of staff is a member of the University's Superannuation Scheme (USS) or University of Sheffield Pension Scheme, they may request information on the benefits of the Scheme available to them.
13. Equal Opportunities
All parties involved in the operation of the Redundancy Policy shall ensure that the application of this Policy is in line with the University´s Equal Opportunities Policy and Code of Practice for Staff.
The impact of the Redundancy Policy on all staff groups will be assessed on a regular basis and any adverse or disproportionate impact on any particular groups addressed.
14. Review
Policies and procedures which are linked to the Redundancy Policy, and which should be read in conjunction with it, are:
- University Guidelines and Criteria to Govern the use of Fixed Term Contracts
- Redeployment Policy
This policy was implemented with effect from 1 February 2005 and shall be monitored and reviewed on a regular basis, to ensure that it meets the needs of the University and to ensure compliance with relevant legislation.
Content last updated by Department of Human Resources: 25 March 2008