Post on 24-Apr-2018
DofI: XXXXXXXXX Author Ref: DofHR,IT&CS/HRM SO Vol 4/35
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Service Information System
SUBJECT: REORGANISATION/REDUNDANCY/
REDEPLOYMENT PROCEDURE
SUMMARY:
This policy is designed to enable Essex County Fire and Rescue Service managers to handle
Reorganisation/Redundancy/Redeployment issues in a legal, ethical and professional manner.
FURTHER INFORMATION:
• The Employment Rights Act 1996
• The Employment Equality (Age) Regulations 2006
• The Local Government (Early Termination of Employment) (Discretionary
Compensation) (England and Wales) Regulations 2006
• Local Government Pension Scheme Regulations 1997 (as amended)
• The Redundancy Payments (Continuity of Employment in Local Government)
(Modification) Order 1999 SI 1999/2277 (as amended)
• Trade Union and Labour Relations (Consolidation) Act 1992 (HR, SHQ)
• Trade Union Reform and Employment Rights Act 1993 (HR, SHQ)
• Collective Redundancies and Transfer of Undertakings (Protection of Employment)
(Amendment) Regulations 1999 (HR, SHQ)
• Collective Redundancies Directive 1998 (HR, SHQ)
• Disability Discrimination Act 1995 (HR, SHQ)
• Human Resources Department, Service Headquarters
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PRIMARY INFORMATION
1. Introduction Page 5
2. Scope of the Procedure Page 5-6
3. Avoiding a Redundancy Situation Page 6
4. Declaring a Redundancy Situation Page 6-7
5. Consultation with Employee Representatives Page 7-8
6. Appointment/Selection Process for Posts in the New Structure Page 8-10
7. Pay Protection Page 10-11
8. Employees "At Risk" of Redundancy Page 11
9. Redeployment for Employees not Securing a Post in the New Structure Page 12-13
10. Right of Appeal Page 13
11. Calculation and Authorisation of Redundancy Payments Page 13
SUPPORT INFORMATION
1. Example of Declaration of a Redundancy Situation Form Page 14-15
2. Example of Consultation with the Trades Union – Model Letter Page 16
3. Example of Preference Form Page 17
4. Example of Reorganisation Procedure – Selection Form Page 18-20
5. Example of Dismissal due to Redundancy Letter Page 21-22
6. Example of Job Matching Form Page 23
7. Example of Alternative Employment Model Letter Page 24-25
8. Details of Redundancy Benefits Page 26-29
APPENDICES
A Statutory Redundancy Payments Ready Reckoner Page 30-31
B Discretionary Compensation Payments Ready Reckoner Page 32-33
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REORGANISATION/REDUNDANCY/
REDEPLOYMENT PROCEDURE
In any reorganisation/redundancy situation, ECFRS will:-
� Implement measures aimed at avoiding redundancy
wherever possible.
� Ensure that effective consultation and communication takes
place with employees and trade union representatives in
accordance with statutory requirements and good employee
relations practice.
� Provide opportunities for support and development for
affected employees.
� Ensure that employees "at risk" of redundancy have
priority status in recruitment to vacant posts, along with
other displaced employees such as cases of medical
redeployment or employees with a disability (as defined by
the DDA 1995) who are no longer able to carry out the
duties of their job.
� Ensure that the competencies and experience of employees
are appropriately matched to the new jobs in the
organisation.
� Implement measures aimed at redeploying employees who
are made redundant.
� Ensure that in all cases when a manager is considering a
situation which may result in the release of a member of
staff, HR will be contacted to guide the manager through the
process.
KEY INFORMATION
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� This policy applies to all cases of termination of employment
where the last day of service is on or after (1st September
2007)
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1. INTRODUCTION
ECFRS takes very seriously its responsibilities as a fair and caring employer.
Therefore in any reorganisation/redundancy situation it will follow the provisions of
this procedure to ensure that its employees are treated legally, ethically and
professionally.
2. SCOPE OF THE PROCEDURE
Redundancy is one of the legally admissible reasons for dismissing employees. The
Employment Rights Act 1996 sets out the definition of redundancy:
The dismissal is wholly or mainly attributable to:
(a) the fact that the 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
(b) 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 they were so employed, have ceased or diminished or are
expected to cease or diminish.
In other words, redundancy occurs where:
• The establishment where the employee works closes down; or
• The need for workers carrying out a certain type of work has ceased or
reduces (the work itself may not have reduced – it is the need for
employees which is the test); or
• There is a change in the place of work of the employee (which is beyond
the scope of alternative transport/excess travel arrangements)
The legal definition of redundancy must be met, appropriate consultation and searches
for alternative employment carried out, etc, before redundancy payments can be
considered.
The procedure applies to:-
• All full-time or part-time permanent employees of ECFRS, including new
employees still in their probationary period.
• Employees on temporary/fixed-term contracts who have completed one year's
service with the Service at the date of implementation of the new structure.
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It does not apply to:-
• TUPE (Transfer of Undertakings) situations where all staff belonging to a
particular 'undertaking' are transferred from one employer to another.
3. AVOIDING A REDUNDANCY SITUATION
In order to avoid redundancy situations arising, managers should always consider use
of the following:-
• Natural wastage (employees retire or leave and are not replaced).
• Recruitment restrictions or freeze.
• Volunteers for redundancy or early retirement
• Reduction/elimination of overtime.
• Terminating temporary/consultancy workers' contracts
4. DECLARING A REDUNDANCY SITUATION
A lead manager responsible for the function concerned must be nominated at the
outset to coordinate and oversee the process of declaring/handling redundancies. This
will normally be the Department Head. He/she will be supported in this role by an
HR Business Partner as appropriate.
Any proposed changes to the number of people employed by the Service must be
approved by the Senior Management Board in the first instance. The written proposal
(see Support Information) will contain:-
• Full details of the proposed changes.
• The rationale for the proposed changes.
• Proposals for implementation.
• Cost implications (eg potential redundancy costs and method of calculation).
• Proposed implementation time-scale, including length of consultation period,
production of job profiles etc.
• Potential effects on employees (bearing in mind that practices such as focussing
on part-time employees may lead to indirect sex discrimination).
• Proposals for selection criteria to fill new/redesigned/fewer posts.
Where collective redundancies are proposed (ie 20 or more at one establishment), the
Department of Trade and Industry (DTI) must be notified in writing. This will be
done by the HR Manager. The timescales for notification to the DTI correspond with
those for statutory consultation with employee representatives as set out below.
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Any recruitment activity relating to posts of the type occupied by employees likely to
be affected by redundancy should normally be stopped at this stage. The HR
Business Partner will advise on how widely this should be applied. It is possible that
some appointments may be necessary to maintain services during the period of
change.
5. CONSULTATION WITH EMPLOYEE REPRESENTATIVES
The statutory consultation requirements relating to redundancy are that all affected
employees must be properly consulted through their recognised trade union
representatives, as appropriate. Consultation must begin as soon as redundancies are
contemplated and, in any event, at least 30 days before the first of the dismissals takes
effect where between 20 and 99 redundancies are proposed at one establishment
within a 90-day period, and at least 90 days before where more than 100 redundancies
are proposed. The requirement to consult extends to employees who are indirectly
affected as well as those directly affected by the proposed redundancies. (See Support
Information for a model 'Section 188' letter to be sent to Trades Unions involved.)
Even where a reorganisation does not result in 20 or more employees being made
redundant, it is still ECFRS practice for full and effective consultation to take place
with employees and their trade union representatives.
Even at the earliest stage when an initial declaration of a redundancy situation is being
put to the Senior Management Board for approval, some initial notification should be
given to employee representatives that a potential for a redundancy situation may
exist.
Once an initial declaration of redundancy has been approved by the Senior
Management Board, the Department Head in conjunction with HR must consult all
affected employees and the appropriate trades unions on the proposed changes.
Copies of the proposals, job profiles and person specifications should be given to all
those affected and adequate time should be allowed for consideration and comment.
Consultation must be meaningful and considered replies must be given to any
representations made.
It is not necessary for all of the consultation to be concluded before any individual
notices of redundancy are issued but there must have been sufficient meaningful
consultation in accordance with the statutory requirements before any such notices are
issued. Subject to this, individual periods of notice may run concurrently with the
statutory consultation periods outlined above.
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6. APPOINTMENT/SELECTION PROCESS FOR POSTS IN THE NEW
STRUCTURE
The proposals, job profiles and person specifications should be finalised by the
Department Head in conjunction with HR. Job profiles will need to be evaluated by
HR. Copies of the final proposals; job profiles and person specifications should be
made available by HR. The process for staffing the new structure should then
commence.
Slotting
Where a post in the new structure is fundamentally the same as the existing post, and
where there is just one employee for the job, then the employee should be slotted in
automatically, ie assimilated to the new post, without the need for an interview.
For slotting to take place, the post has to be fundamentally the same except for a
variation in working method or balance of skill or slight change in the level of
responsibility. The line manager in conjunction with the relevant HR Business
Partner will assess each case on its individual merits.
Ring-Fence
Where a different structure is created with different jobs, or where a reduction in the
number of jobs in the new structure means that there is more than one employee for
each job, there may be a ring-fencing exercise.
Ring-fencing means initially restricting applications for new posts to those staff
directly affected by the restructuring exercise that may have a match to the new posts.
It applies in all restructuring situations where there is not a direct one to one match to
a post, which is fundamentally the same as the old post and/or where the number of
employees eligible for posts in the new structure exceeds the number of posts
available.
Managers will notify all employees, directly affected by the change, of the selection
process for the posts in the new structure. It may be appropriate to ask for volunteers
for selection for redundancy before starting the selection process. Managers will
notify employees of the process for expressing an interest in redundancy.
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6. APPOINTMENT/SELECTION PROCESS FOR POSTS IN THE NEW
STRUCTURE (continued)
Managers must make it clear that, where an employee volunteers for redundancy, this
does not imply any automatic right or impose any obligation on the Service to
approve the employee’s request. Managers must first consider the needs of the
service and any redeployment options that are available.
Appointments to posts in the new structure will be made on the basis of an assessment
of skills and competencies through a rigorous selection process. Staff not appointed
through this process will be identified as being at risk of redundancy.
Where employees have already been slotted into jobs in the new structure, they will
not be able to register an interest in jobs within the ring-fence except where the post
presents a promotion opportunity.
Managers will ensure that the ring fence includes all substantive posts within the
department being re-structured, including those employees who may have been
seconded to an alternative post.
Where an employee fails to register an interest in any of the identified posts within the
new structure, the manager in conjunction with HR may identify and rank suitable
vacancies for the individual him/herself. This will be determined by undertaking a
comparison of the job profile and person specification and the comparative grading of
the old and new posts. As a general rule, the ring-fence should include all staff
affected by the reorganisation who have previously covered elements of the new job.
It will not include employees who have already been slotted into jobs in the new
structure except where the post represents a promotion opportunity. The manager in
conjunction with HR must notify individual employees, in writing, which posts they
may be considered for through the ring-fence exercise.
The criteria/competencies to be used in the selection process (which will include a
ring-fence interview) will be drawn from the job profile and person specification for
the new post. It will also take into account attendance record (which the individual
will be allowed to comment upon), and conduct over the previous two years as
evidenced from the personal record file (PRF).
The selection criteria must be shared with the trades unions and employees at this
stage, and comments invited.
Employees will be required to submit an application for posts in the new structure to
assist the process (see Support Information for model Selection Form).
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6. APPOINTMENT/SELECTION PROCESS FOR POSTS IN THE NEW
STRUCTURE (continued)
Where an employee is ring-fenced to more than one post, the employee's match to all
identified posts will be assessed through one selection process wherever possible.
Each tier of post will normally be dealt with separately, starting with the highest level.
Employees must demonstrate that they match the essential criteria that have been
agreed for the post and a record of the selection process must be kept.
Any employee appointed under the ring-fence procedure will be entitled to a four-
week trial period in the new post.
Where an employee is appointed to a lower graded post through this process, the
appointment will be regarded as a suitable alternative to redundancy where it is within
a range of two grades, and a trial period of 4 weeks will apply. The Service's normal
pay protection arrangements will apply.
If at the end of the ring-fencing selection process there are posts which have not been
filled and employees who have not been matched, a further ring-fence recruitment
exercise may be carried out, for example by widening the pool for particular types of
job, following the agreed process.
Employees who are dissatisfied with the application of the agreed selection criteria
have a right to make a formal representation in writing to their Department Head
stating the reasons for their dissatisfaction. This will be treated in accordance with
the ECFRS Grievance Procedure.
Once the slotting and ring-fence processes are complete, the old structure will be
deleted and the new structure implemented. Those employees who have been
appointed to the new structure should be issued with a new contract of employment, a
copy of which must be signed by the employee and returned to the HR Manager for
placing on the PRF.
7. PAY PROTECTION
Where an employee is matched to or selected for a lower graded post in the new
structure, through the ring-fence selection process, the Service's current protection
policy will apply. Currently this is full protection of basic salary for three years from
the effective date of the change. The protected salary will continue to include pay
awards but will not allow for any further incremental progression within the protected
grade. After 3 years the salary will revert to the maximum point of the salary range of
the new job with no further protection.
The Local Government Pension Scheme Regulations 1997 provide for the issue of a
Certificate of Protection of Pension Benefits where:
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a) An employee’s rate of pay is reduced, or
b) The rate at which it may be increased is restricted in such a way that it
is likely that the rate of his (or her) retirement pension will be
adversely affected.
Unless these occur either through the employees own circumstances, e.g. voluntary
change of job/hours/end of secondment/temporary acting up arrangement of cessation
of non-contractual payments.
On the basis of the above, where as a result of job evaluation or restructuring exercise,
or for any other similar unavoidable reason, a member of the Local Government
Pension Scheme (LGPS) has suffered a reduction or restriction to their pensionable
earnings, clearly through circumstances outside their control, a Certificate of
Protection of Pension Benefits should be issued when the reduction or restriction in
pay takes place i.e. when any pay protection ceases.
The Certificate of Protection of Pension Benefits seeks to base benefits in respect of
both past and future services at the higher rate of pensionable earnings, provided that
pensionable employment ceases within 10 years of the original reduction in
earnings/pay aware restriction. However if the member remains in the LGPS for a
period longer than 10 years the Certificate offers no real protection.
Further advice on this can be obtained from the HR Business Partners.
8. EMPLOYEES 'AT RISK' OF REDUNDANCY
Employees who have not acquired a post in the new structure will become 'at risk' and
subject to redeployment (see below). Employees will be issued with a formal letter of
dismissal by reason of redundancy, unless it has been necessary to issue this earlier
due to the time-scales involved (see Support Information for model Dismissal due to
Redundancy letter).
The notice period for redundancy dismissals will normally be the employee's
contractual or statutory notice period, which ever is the greater. However, a longer
period of notice may be given in certain circumstances such as:
• Where the decision is made to give all employees affected by the same
restructuring exercise the same period of notice. In this case, all employees could
receive notice based on the longest entitlement within the group.
Where the timing of the restructuring exercise is such that it allows for a longer period
of notice to be given.
Reasonable paid time off will be given to individuals to attend interviews for other
posts, attend appropriate training provided within or outside the organisation, etc.
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9. REDEPLOYMENT FOR EMPLOYEES NOT SECURING A POST IN THE
NEW STRUCTURE
Where it is regarded by management as in the best interests of ECFRS, employees
who have expressed a preference in writing for redundancy may be released. Such
employees may be allowed to leave ECFRS immediately on grounds of redundancy
with payment in lieu of their notice period. For all other eligible employees who are
under notice of dismissal due to redundancy, ECFRS will seek redeployment
opportunities and this assistance will last throughout the employee's notice period.
Assistance with finding redeployment opportunities will be offered by HR which will
keep a register showing all employees affected, what assistance is being offered (such
as sending vacancy bulletins to the employee), which posts they are applying for, and
the outcomes (see Support Information for model Job Matching form).
Where ECFRS identifies a suitable alternative employment opportunity for an
employee, any entitlement to redundancy pay will be forfeited if the individual
unreasonably refuses. 'Suitable alternative employment' normally involves a
reasonable match on skills, experience, pay, status, location, working environment
and hours of work, a start date within 4 weeks of the end of the old job, and allows the
employee a trial period of 4 weeks to assess suitability (see Support Information for
model Offer of Alternative Employment letter).
Any employee applying for posts on this basis will be advised to mark their
application clearly to indicate that they are 'at risk'. Providing that the employee
meets the essential criteria for the post, he/she will be asked to attend an interview
with the line manager and a representative of HR in advance of any other applicants
being seen. If the individual is deemed not to be suitable (even if appropriate training
were to be provided), it is particularly important in these circumstances that the
reasons for this are clear, and that a written record of these reasons is kept on file for
12 months. Any employee in this situation is entitled to request and be given honest
feedback.
If the individual is successful, he/she will be redeployed into the vacant post for a trial
period of 4 weeks to assess whether the job is a suitable and successful match. The
trial period can be longer to accommodate re-training if mutually agreed between the
manager, HR and the individual before the trial period begins. The manager is
responsible for monitoring the performance of the employee during the trial period
and conducting weekly review meetings to discuss progress.
ECFRS is only obliged to make one offer of suitable alternative employment to any
employee. If the employee accepts the offer and the trial period to assess suitability is
successful, he/she will be treated as not having been dismissed and the question of a
redundancy payment will not arise. If the employee refuses a reasonable offer, or
unreasonably insists that any trial period demonstrates lack of suitability, no further
offers will be made and the employee will lose their right to redundancy pay and will
leave ECFRS at the end of their notice period.
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9. REDEPLOYMENT FOR EMPLOYEES NOT SECURING A POST IN THE
NEW STRUCTURE (continued)
If the trial period in a post which has been offered to the employee as a suitable
alternative employment proves unsuccessful, the employee will be placed back on the
redeployment register by HR and further opportunities will be actively sought for the
remainder of the unexpired notice period.
Any 'at risk' employee who is being helped to find suitable alternative employment by
HR may continue to apply for other posts which HR does not regard as suitable
alternatives. If successful in obtaining such a post, he/she will lose any entitlement to
a redundancy payment unless deciding against the job after a trial period.
Normal pay protection provisions (see Section 7 above) will apply where the
alternative employment is of a lower grade but is considered by ECFRS to be an offer
of suitable alternative employment. However, where the employee applies for, and is
appointed to, a lower graded post which has not been identified by HR as suitable
alternative employment, there will be no protection of salary.
Where a temporary position is offered and accepted during an employee's notice
period the notice is considered to have been withdrawn and will start again at the end
of the temporary contract.
10. RIGHT OF APPEAL
An employee has the right to appeal against a redundancy dismissal. The appeal may
be on the basis that the employee’s role should not be made redundant and/or the
decision to select for redundancy. The appeal will be heard by a senior Manager who
has not been involved in the original decision to dismiss.
11. CALCULATION AND AUTHORISATION OF REDUNDANCY PAYMENTS
A brief outline of Statutory Redundancy Payments, ECFRS Discretionary
Compensation payments and entitlements to early release of pension benefits is
attached (see Support Information for 'Details of Redundancy Benefits').
No agreement may be reached at any stage of the above procedure to make a
Redundancy payment to any individual without the written authorisation of the SMT
Director.
SUPPORT INFORMATION
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1. EXAMPLE OF DECLARATION OF A REDUNDANCY SITUATION FORM
Location/Team Affected
Submitted to Senior Management Team on: (date)
Approved by Senior Management Team on: (date)
State details of the proposed changes: .................................................................................................................................... .................................................................................................................................... ....................................................................................................................................
What is the rationale for the proposed changes? .................................................................................................................................... .................................................................................................................................... ....................................................................................................................................
How is it proposed to implement the changes? .................................................................................................................................... .................................................................................................................................... ....................................................................................................................................
SUPPORT INFORMATION
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1. EXAMPLE OF DECLARATION OF A REDUNDANCY SITUATION FORM
(continued)
What are the cost implications? .................................................................................................................................... .................................................................................................................................... ....................................................................................................................................
What is the estimated timescale for implementing the changes? .................................................................................................................................... .................................................................................................................................... ....................................................................................................................................
What are the potential effects on the employees concerned? .................................................................................................................................... .................................................................................................................................... ....................................................................................................................................
What selection criteria are proposed for the filling of any new or redesigned posts? .................................................................................................................................... .................................................................................................................................... ....................................................................................................................................
SUPPORT INFORMATION
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2. EXAMPLE OF CONSULTATION WITH THE TRADES UNION – MODEL
S188 LETTER
Dear:
Re: [name of establishment or Service area]
I am writing to give you formal notice under Section 188 of the Trade Union and
Labour Relations [Consolidation] Act 1992 that the decision to review/close
[establishment or work area] may result in a redundancy situation.
I am, therefore, providing the following information as required by statute. (Details to
be filled in under each of the following headings.)
1. Reason for the potential redundancy situation.
2. Number and description of employees (posts) potentially at risk of
redundancy.
3. Total number and description of employees currently affected.
4. Proposed method of selection of employees to be made redundant.
5. Proposed method of carrying out the redundancies including any agreed
procedures and the intended date the redundancies will take effect.
6. Strategies to be adopted to mitigate the effects of the situation.
7. The method of calculating the redundancy payments to be made to the
employees who may be dismissed.
I hope that this information will provide the basis for continued discussion between
our representatives. Please contact [name] if you have any queries on the information
contained in this letter.
Yours sincerely
HR Manager
SUPPORT INFORMATION
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3. EXAMPLE OF PREFERENCE FORM
Confidential Personal Preferences
In order to assist managers when making decisions affecting employees and to meet employee wishes as far as possible, it would be helpful at this stage to have an early indication of individual preferences. Views expressed now will in no way be binding on employees and will not commit them or the Service to future action. However, receipt of views will allow us to plan more effectively. Will you please, therefore, complete the following? If you wish to add any comments to clarify or expand, please do so.
1. Would you wish to be considered for redundancy?
Yes No
2.
Of the ring-fenced posts available to you please state those which you wish to be considered for in order of preference:-
3. Type of work you wish to be considered for.
4. Previous work experience and particular skills and competencies.
5.
Is there any training which you consider would assist your future career choices?
Thank you for your assistance in completing this. The content will be kept confidential and only used to assist forward planning.
Signed: Date:
Designation:
Please return to: By:
SUPPORT INFORMATION
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4. EXAMPLE OF REORGANISATION PROCEDURE – SELECTION FORM
PERSONAL INFORMATION (please complete in typescript or black ink)
Name:
Address:
CURRENT POST
Location/ Department:
Grade:
Post Title: Salary:
Hours Per Week:
Please give brief details of current post: .................................................................................................................................................................. .................................................................................................................................................................. ..................................................................................................................................................................
RELEVANT PREVIOUS EMPLOYMENT/EXPERIENCE (most recent first)
Employer:
Post Title:
Dates:
Employer:
Post Title:
Dates:
EDUCATIONAL/PROFESSIONAL/VOCATIONAL QUALIFICATIONS AND COMPETENCIES (Please include membership of professional bodies)
Qualification/ Professional Body:
Dates:
Contact Telephone No’s: Work: Home:
Signed: Date:
Personal Data may be processed in line with the Data Protection Act 1998.
SUPPORT INFORMATION
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4. EXAMPLE OF REORGANISATION PROCEDURE – SELECTION FORM
(continued)
POST(S) APPLIED FOR
Please state which post(s) you are applying for:
1. Location/ Service Area:
Post Title: Grade:
2. Location/ Service Area:
Post Title: Grade:
3. Location/ Service Area:
Post Title: Grade:
4. Location/ Service Area:
Post Title: Grade:
5. Location/ Service Area:
Post Title: Grade:
6. Location/ Service Area:
Post Title: Grade:
For EACH post, please complete a STATEMENT IN SUPPORT OF APPLICATION (see next page):
For EACH post, please send a copy of this form together with the appropriate STATEMENT IN SUPPORT OF APPLICATION:
To: By:
SUPPORT INFORMATION
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4. EXAMPLE OF REORGANISATION PROCEDURE – SELECTION FORM
(continued)
STATEMENT IN SUPPORT OF APPLICATION
Post Title: Grade:
Please indicate below why you believe you meet the requirements of the job profile, person specification and competencies. .................................................................................................................................................................. .................................................................................................................................................................. .................................................................................................................................................................. .................................................................................................................................................................. .................................................................................................................................................................. .................................................................................................................................................................. .................................................................................................................................................................. .................................................................................................................................................................. .................................................................................................................................................................. .................................................................................................................................................................. .................................................................................................................................................................. .................................................................................................................................................................. .................................................................................................................................................................. .................................................................................................................................................................. .................................................................................................................................................................. .................................................................................................................................................................. .................................................................................................................................................................. .................................................................................................................................................................. .................................................................................................................................................................. .................................................................................................................................................................. .................................................................................................................................................................. ..................................................................................................................................................................
SUPPORT INFORMATION
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5. EXAMPLE OF DISMISSAL DUE TO REDUNDANCY LETTER
PERSONAL AND CONFIDENTIAL
Dear
Dismissal due to Redundancy
I am writing to advise you that, regretfully, you will be dismissed by reason of
redundancy from your post with Essex County Fire and Rescue Service (ECFRS) on
[date].
Either – This letter gives you [number] weeks notice with effect from [date].
Or – It has not been possible to give you the [number] weeks notice to which you are
entitled. This letter therefore gives you [number] weeks notice with effect from [date]
and you will receive [number] weeks/days pay in lieu of notice.
You are, I know, aware of the [restructuring proposals etc] that have given rise to this
redundancy situation as this has been discussed with you in recent weeks. It has also
been the subject of consultation with the relevant trade unions.
Provided that you have not obtained any alternative employment and there has been
no material change in your employment prospects on the date your employment with
ECFRS terminates, you will be entitled to a severance payment. An estimate of
benefits is enclosed/will follow shortly/was sent to you previously. I would stress that
these are estimated figures and are subject to final verification when payments are
made.
If there have been any changes in your employment position/prospects during this
notice period by the date your employment with ECFRS terminates, you are required
to notify me of this. Failure to do so may affect your entitlement to the severance
payment.
Should you take up an appointment with another Fire and Rescue Service, and in the
case of non-uniformed staff, with any other body specified in the Redundancy
Payments (Local Government) Modification Order 1983, within 4 weeks of the date
of redundancy you will lose your right to severance payments. This only applies
where the offer of a job is made before the end of your contract of employment with
ECFRS. If you are made redundant on a Friday, Saturday or Sunday the 4 weeks will
begin on the following Monday.
During your notice period if a vacancy arises that is considered to be suitable
alternative employment it will be necessary to withdraw this notice of redundancy.
Continued …
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5. EXAMPLE OF DISMISSAL DUE TO REDUNDANCY LETTER (continued)
You have a right to reasonable paid time off during your notice period to attend
interviews for other posts.
If you wish to resign during the notice period please discuss this with the HR
Manager as it may affect your estimated severance payment.
Similarly if you wish to discuss any other aspect of this letter please do not hesitate to
contact the HR Manager.
Should you feel that your selection for redundancy or the way the procedure has been
operated is unfair, you have the right to appeal against this dismissal. Any appeal
should be made in writing to the HR Manager within 10 days of the date of this letter.
May I take this opportunity to express my appreciation for your service and wish you
well for the future.
Yours sincerely
HR Manager
Optional Paragraphs:
I note that you currently have a (season ticket/car loan/bicycle loan) which will need
to be repaid in full at the end of your employment. Any outstanding balance will,
therefore, be deducted from your final salary payment. Should this present any
difficulties please contact me.
You are required to return your ID Card/any Service equipment/lease car at the end of
your employment. You should make arrangements with your line manager to return
these (adapt as necessary).
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6. EXAMPLE OF JOB MATCHING FORM
Name
Last day of
Service
Dates Job Vacancy
Information Sent Positions Applied
For Outcome
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7. EXAMPLE OF ALTERNATIVE EMPLOYMENT MODEL LETTER
Dear [Salutation]
Review of [Location/Service Area etc] – Alternative Employment.
I refer to your recent meeting with a member of the HR team at which the alternative
employment procedure was explained to you.
As you are aware every effort is being made to identify alternative employment
opportunities for staff affected by the review to avoid the need to make staff
redundant.
The following post has been identified as being suitable alternative employment for
you.
Post:
Grade:
Location:
Hours:
I enclose a copy of the job profile for the post for your information. If you would like
further details about the position please contact [name] who will be happy to talk
about the role.
Please be aware that this is considered to be an offer of suitable alternative
employment and if you choose not to accept the employment you will lose your right
to a redundancy payment.
You are entitled to a trial period of 4 weeks in this post. If you do not find the work
suitable during this period and I agree with your/your manager's representations to
that effect you will be eligible for alternative employment opportunities during the
remainder of your notice period. You will not lose your right to a redundancy
payment in this situation.
If you wish to accept this offer of alternative employment please complete the
attached page at the end of this letter and return it to [name and address] by [date].
[Optional paragraph if identified post is at a lower grade]
*The ECFRS policy on pay protection will apply. Currently, this is full protection of
basic salary for three years from the effective date of the change. The protected salary
will continue to include pay awards but will not allow for any further incremental
progression within the protected grade. After three years the salary will revert to the
maximum point of the new grade with no further protection.
If you do not intend to accept this position you will need to let us know, in writing,
why you do not consider the position to be suitable alternative employment no later
than [date].
Yours sincerely
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7. EXAMPLE OF ALTERNATIVE EMPLOYMENT MODEL LETTER
(continued)
I ……………………………………………[name]
Accept/Do not accept* the post of ………………………………..[post title]
as suitable alternative employment.
*If you do not consider the offer to be suitable alternative employment you must give the
reason why you do not consider the offer to be suitable.
Signed: ...................................................................... Dated: ..............................................
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8. DETAILS OF REDUNDANCY BENEFITS
STATUTORY REDUNDANCY PAYMENTS
Subject to the qualifying service criteria of two years continuous service, statutory
redundancy payments are calculated on a formula defined in the Employment Rights
Act 1996 and based on age and length of service as set out below:
Table 1: Statutory Redundancy Payments
Age Weeks pay per years of service in this age range
Under 22 ½ week
22 to under 41 1 week
41 and over 1 ½ weeks
The maximum years of service (regardless of the employee’s length of continuous
service) that can be counted are 20 years and maximum weeks payable is 30 weeks.
There is a statutory maximum of a week’s pay which is used to calculate payments
due. Appendix A provides a ready reckoner for calculating the number of weeks pay
due.
ECFRS DISCRETIONARY COMPENSATION PAYMENT
However, it is ECFRS policy to award a discretionary compensation payment based
on the above formula and, subject to the qualifying condition of two years service, pay
up to a maximum of 45 weeks pay which is calculated using a multiplier of 1½ times
the statutory entitlement, as shown in the above table.
This therefore gives the discretionary compensation payment formula as follows:
Table 2: Discretionary Compensation Payments
Age Weeks pay per years of service in this age range
Under 22 ¾ week
22 to under 41 1 ½ week
41 and over 2 ¼ weeks
In addition, it is the ECFRS’ policy to calculate discretionary compensation payments
based on an employee’s contractual weekly pay (as opposed to the statutory
maximum).
The discretionary compensation ready reckoner is at Appendix B. This discretionary
compensation payment subsumes and incorporates the redundancy payment due.
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REDUNDANCY AND AGE OF EMPLOYEE
REDUNDANCY – AGED LESS THAN 50 YEARS
Employees meeting the various qualifying conditions receive a discretionary
compensation payment (enhanced from the statutory formula and therefore
subsuming any right to redundancy pay) in accordance with the table above to
a maximum of 45 weeks pay.
Under the age of 50, there is no entitlement to the early release of pension benefits.
REDUNDANCY – AGED OVER 50 YEARS – LGPS MEMBERS
Under ECFRS policy employees meeting the various qualifying conditions are
entitled to a discretionary compensation payment (incorporating the statutory
redundancy payment) to a maximum of 45 weeks pay.
In addition, for employees with over 3 months ‘total membership in the Local
Government Pension Scheme (LGPS), there is an entitlement to early release of
pension benefits. These benefits are those accrued by the employee to the date of
dismissal.
If an employee is aged under 65, there will be a financial strain on the pension fund
due to the pension being paid early, which must be paid for by ECFRS.
REDUNDANCY AT ANY AGE – LGPS MEMBERS WITH LESS THAN 3
MONTHS TOTAL MEMBERSHIP
Where an employee’s total pension membership is less than 3 months there is no
entitlement to release of pension benefits on the grounds of redundancy.
Employees have the same choices regarding their LGPS pension rights as voluntary
leavers i.e.:
to request a refund of their contributions less tax and NI deductions
OR
arrange a transfer of their pension rights to another employer in the LGPS, or to
another pension scheme,
OR
to elect in writing to defer any decision for the time being
In the absence of any of the above actions being taken, a compulsory refund of
the member’s LGPS contributions will be made to them after the expiry of 12 months
from the termination date.
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To qualify for a redundancy payment, employees need to have completed at least 2
years continuous service at their termination date (the date the notice expires). The
continuous service will be with ECFRS and may include previous service with one or
more other body listed in The Redundancy Payments (Continuity of Employment in
Local Government) (Modification) Order 1999. Continuity of service with these
bodies will be broken for redundancy purposes if there is a gap in employment of
more than one national insurance week, i.e. Sunday to Saturday. If, however, an
employee is offered another local authority/Modification order Body job before their
service is terminated and they are due to start their new job within 4 weeks, their
service is deemed to be continuous and no redundancy payment can be made.
EMPLOYEES WITH TWO OR MORE JOBS WITH ECFRS
Where an employee has two or more separate jobs with ECFRS and they are made
redundant from one of these jobs, continuous service (and the redundancy payment) is
calculated based on the redundancy post only – as the two employment arrangements
should be treated as independent of each other for redundancy purposes. It is
necessary to check the pension position of the job being made redundancy with the
Pension Services.
CALCULATING WEEKLY PAY
The weekly pay (for those who work regular hours) to be taken into account when
calculating a discretionary compensation payment is at the ‘termination date’ i.e. the
last day of service. For those who work varying hours an average weeks pay must be
calculated over a 12 week period ending on the termination date.
For employees paid for less than a full year i.e. paid for less than 52.14 weeks per
annum – a week’s pay should be based upon the total paid weeks, rather than dividing
their annual salary over the full year (52.14 weeks).
An employee who would normally be entitled to a redundancy payment may lose this
entitlement where:
• The employee commits an act of gross misconduct and is dismissed (i.e. an
offence of a serious nature as defined in the disciplinary procedure)
• The employee leaves early before the notice has expired without the
employer’s agreement. Employers must be prepared to justify the reason for
their refusal as the employee will be able to appeal to an employment tribunal
who will examine both the employer’s and the employee’s reasons. The
tribunal’s decision on what to pay the employee will be based on what is ‘just’
and ‘equitable’.
If the employee is given notice of redundancy and before the dismissal takes effect,
the employee receives an offer of employment from another body specified in
Schedule 2 of the Modification Order 1999, the individual may lose entitlement to a
redundancy payment. This only applies where the relevant body makes the offer of a
new job before the end of the old contract and the employment starts within four
weeks of the date of redundancy. (If the contract ends on a Friday, Saturday or
Sunday, the 4 weeks is counted from the Monday of the next week.)
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However, employees under notice of dismissal may ask their employer to allow them
to leave their job early before the expiry of their notice period. Or, they may issue the
employer with a written counter notice. This will not invalidate the right to a
redundancy payment except where the employer successfully contests the application.
The employee will still be deemed to have been dismissed by the employer, but on the
date of expiry of the employee’s notice and not of the original notice from the
employer. It is essential that further advice on this is sought for the HR Service.