Management Guidance Notes on Redundancy
Pre-January 2013
1 Introduction
The following guidance notes have been drawn up to support the operation of the University's Redundancy Policy.
This document is intended to be read in conjunction with the Redundancy Policy and to provide practical guidance to managers using the policy, to ensure its consistent and fair application.
It is essential that all redundancy situations are managed with discretion and confidentiality and that members of staff subject to the provisions of the Redundancy Policy are treated sensitively.
These guidelines supersede all previous arrangements, but do not affect the individual protection arrangements already in place for those members of staff who have been redeployed.
The Redundancy Policy and these guidance notes apply to all staff, in all staff categories (except those covered by the provisions of the University's Statutes), on both permanent open-ended and fixed-term contracts and shall be implemented in accordance with all other University policies and procedures, including and for example, the University's Equal Opportunities Policy and Code of Practice for Staff.
2 Consultation
Scope of Consultation
Consultation shall include all matters covered by relevant legislation. Information shall be provided in a timely manner and in appropriate detail to enable representatives to conduct an adequate study and prepare for consultation. This shall include:
- any threat to employment within the University, including major organisational change and restructuring, and any anticipatory measures which are envisaged;
- any decisions likely to lead to substantial changes in work organisation or contracts, including those relating to redundancies and TUPE transfers;
- the expiry of fixed term contracts.
Where Reductions in Staffing are Anticipated
Where reductions in staffing are anticipated the University, through line managers, and supported by the Department of Human Resources, shall, as soon as practicable, inform the recognised Campus Unions of the nature of the reductions envisaged and shall consult on the extent to which the necessary reductions might be achieved without the need for redundancy.
Consultations with the recognised Campus Unions to avoid the need for redundancy shall include, inter alia, consideration of:
- consideration of all reasonable alternative cost saving measures;
- reduction of staff numbers by the effects of normal staff turnover and / or the use of restricted recruitment;
- an enhanced statutory redundancy payment option, in accordance with the terms set out in the Redundancy and Redeployment Policies;
- redeployment, supported by reasonable training opportunities in line with University practice;
- the restricting of overtime, where practicable;
strict implementation of the normal retirement age and restrictions on systematic re-employment; - consideration of applications for early retirement;
- other measures which may be suggested by staff or the Campus Union(s) or the University.
Where, after consideration of the above, it is not possible to avoid redundancy, the recognised Campus Union representatives shall be supplied with sufficient information which meets the requirements of existing legislation and which makes clear that the proposals are subject to meaningful consultation for which a reasonable period of time will be allowed. 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.
* This refers to total staffing figures across the University.
Both recognised Campus Union representatives and staff affected will have the opportunity to respond to University proposals before decisions are made. Following consultation the University will confirm in writing decisions made and where appropriate a response to issues raised or alternative proposals suggested through the consultation process.
Recognised Campus Union representatives will be provided with reasonable time off to enable them to engage in meaningful consultation and assist any members affected.
Individual consultation with all staff affected will also take place and staff may be accompanied to meetings held by a Campus Union representative or work colleague.
3 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 mechanism by which this 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 the University´s agreed payment scheme, as an alternative to redeployment:
- Where a member of staff confirms they shall opt for the enhanced statutory redundancy payment, they will be required to complete the Enhanced redundancy application form, and return it to the Department of Human Resources. 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, they will be required to complete the Redeployment Skills Analysis Form (Form R1). Entitlement to the enhanced payment scheme shall be forfeited.
The enhanced statutory redundancy payment scheme shall be based upon the Statutory Redundancy Payment calculation, enhanced by 100%. The options shall be confirmed in writing to the member of staff by the Department of Human Resources. 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.
To inform their decision making, staff considering the 2 options available may seek a confidential discussion with their Head of Department or a member of staff in the Department of Human Resources, who can provide information on arising vacancies, based upon those arising previously. However, where individuals require advice on which option to take, this should be sought from an independent source, such as a Campus Union representative.
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, which shall include the terms of the compulsory redundancy payment scheme. It should be noted that contractual notice periods shall run, concurrently.
Where the University has approved an application for the enhanced statutory redundancy payment option:
- eligibility for redeployment is permanently forfeited;
- the terms of the redundancy payment shall be in accordance with the University’s agreed payment scheme;
- notice shall be given in accordance with contractual or statutory entitlement, whichever is the greater;
- the member of staff shall be eligible for reasonable paid leave of absence to seek alternative employment, in line with statutory requirements;
- the University shall consider as sympathetically as possible any request by the member of staff to waive all or part of the notice period to accommodate for early release, for example, where they have obtained an offer of employment;
- the member of staff is not eligible to be employed by the University for a period of 4 months following from date employment ceases.
4 Redeployment
Where the process above has been followed and there continues to be a need to reduce staffing in an identified area all staff 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 redeployment provisions are exhausted the terms of compulsory redundancy shall apply.
5 Compulsory Redundancy
Where the above procedures have been followed and there continues to be a need for compulsory redundancy 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.
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.
During the period of notice, those selected for redundancy shall have available to them:
- the provisions for redeployment;
- information on the calculation of redundancy and pension payments;
- reasonable paid leave of absence to seek alternative employment, in line with statutory requirements;
- consideration for early release if they obtain an offer of employment.
6 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 will 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 futures 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 the criteria, in the recognition that the criteria may need to be varied according to the prevailing circumstances; for differing staff categories and according to the roles undertaken; even where the selection processes take place as part of the same process. In these circumstances staff and Campus Unions shall be consulted regarding proposed changes or additions.
The finalised selection criteria to be used shall be published to staff in advance of selection being undertaken and staff shall be given an opportunity to demonstrate, either through written submission or interview process, how they meet the criteria.
7 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 would offer the possibilities of early retirement within the prevailing financial situation.
8 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 (HRM) within 7 working days of written confirmation of the decision being issued to the member of staff.
The appeal shall be heard by the Assistant Director of HRM, or delegate, who may appoint a panel to consider the appeal, where appropriate. The member of staff shall be invited to attend a meeting to discuss their appeal. The member of staff shall be entitled to be accompanied by a work colleague or trade union representative if they so wish.
The decision of the Assistant Director of HRM, or delegate, shall be final.
The procedure used shall be in line with, and updated to ensure accordance with, relevant legislation.
9 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.
10 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, to seek alternative employment or take up training opportunities. Staff will normally be allowed to leave before the expiry of the redundancy notice period if offered alternative employment outside of the University to start before that date.
11 Early Retirement
Where a member of staff is a member of the University´ Superannuation Scheme (USS) or University of Sheffield Pension Scheme, they may be given information on the benefits of the Scheme available to them.
12 Review
Policies and procedures which are linked to the Redundancy Policy and these guidelines, and which should be read in conjunction with it, are:
- Universities Guidelines and Criteria to Govern the use of Fixed Term Contracts
- Redeployment Policy
These guidelines were implemented with effect from 1 February 2005 and shall be monitored and reviewed on a regular basis, to ensure that they meet the needs of the University and to ensure compliance with relevant legislation.
It is essential that redundancies are managed consistently and fairly. Further guidance for managers may be sought from the Department of Human Resources.
Content last updated by Department of Human Resources: 1 December 2004