Policy and Procedure Document
Document Name:
Avoidance of Redundancy/Redundancy Policy and Procedure
Ref & version no.:
Final
Status:
Agreed
Equality Impact
Assessment:
In progress – first stage completed
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 - HRAdvice@salford.ac.uk
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
Amendments following discussions with trade
unions
Scope & purpose of
policy:
It is the policy and intention of the University, within the financial,
economic and operational contexts which apply at any time, to seek
to maximise job security for all employees within the organisation.
July 2013
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
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this situation occurs, the following policy and procedure will be
adopted.
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
applies to:
This procedure applies to all University staff, with the exception of
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
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throughout this process.
1.2.3.
The University will endeavour to avoid compulsory redundancies wherever
possible
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
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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
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
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to be provided in an abridged version and/or provided under a legally binding
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
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.
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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
week’s pay
For each full year of service where age during the year is between 22 and 41 =
1 week’s pay
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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
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
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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
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
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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
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.
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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
 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.
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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 Redundancy:
This term applies to employees whose posts have changed
sufficiently to be classed as new (“new posts”), or whose posts
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
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determined which will give employees, affected by change, the
opportunity to apply on a ring fenced basis.
Selected
for Redundancy:
Individuals whose posts have been removed or who have been
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
.
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