UNIVERSITY of GLASGOW

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Management of Organisational Change Policy: Avoidance & Mitigation of Redundancy (agreed with Trade Unions)

Index:


1. Introduction

1.1 In the planning of its affairs, the University recognises the importance of security of employment for its staff and the desirability of avoidance of redundancy. The University and the Trade Union(s) jointly commit to avoiding redundancies wherever possible using the procedures set out in this policy. The University is committed to managing the processes in this policy with care and sensitivity to the impact upon all staff.

1.2 Nonetheless, where operational reasons including changes in the patterns of activity, the organisation of work, or the ability to finance work, reduce the requirement for staff, or for staff of a particular kind, the University will, in consultation with staff and the relevant recognised Trade Union(s) as appropriate, take the steps set out below to minimise and manage redundancies and their impact.

1.3 The policy specifically seeks to highlight and address the measures which will be considered or taken to avoid or minimise the need for potential redundancies and to mitigate their impact should redundancies become unavoidable. The policy may need to be adapted where exceptional circumstances demand it and has no contractual effect.

1.4 The application of this policy aims to provide for a sustainable staffing profile appropriate to the University’s academic and business plans and needs for the future in the context of the University’s short, medium and long term financial viability, taking account of the rights, needs and aspirations of staff.

1.5 This policy is applicable only to academic and related staff employed on or after 20 November 1987, or promoted on or after that date, and to all other categories of staff whenever appointed to the University’s employment.


2. Consultation

2.1 The annual planning and budgeting process will involve the identification by each College or resource unit of its staffing requirements for the budget period to undertake its activities against the projected finances available. Exceptionally, during the course of the financial year it may become necessary to review the annual plans and budgets in the light of significant events or factors which may have a significant impact upon the University’s financial position. Within this context any proposal for potential redundancies would arise from discussions of strategy, policy or financial issues by relevant University management at School/RI/Service, College or University level. Where the College Senior Management Group considers there are academic implications, such matters will also come before the Senate for consideration of the academic content and context of the proposals prior to being submitted to the Court.

2.2 Proposals would be submitted through the University Management Group to the Court and would consider the circumstances giving rise to the need for potential structural change and/or redundancies, evaluate the financial case underpinning the proposals, outline the possible impact of the proposals on the staff in the area(s) affected, and consider any implications for interrelated or cognate activities within the University.

2.3 In practice it is expected that the Trade Union(s) will be consulted in the development of the proposals before they are submitted to the University Management Group. The Trade Union(s) will be provided with a copy of the finalised proposal submitted to the University Management Group. Thereafter, the University undertakes to consult the relevant recognised Trade Union(s) about proposed redundancies, potential or otherwise, as early as practicable and will keep the relevant trade unions informed of further developments as they arise throughout the period of consultation in accordance with Section 2.5 of the policy below.

2.4 In particular, such consultations will begin:

  • at least 90 days before the first dismissal is due to take effect, where it is proposed to dismiss as redundant 100 or more staff within a period of 90 days or less within a College, School/RI/Service, section or budget centre; or
  • at least 30 days before the first dismissal is due to take effect, where it is proposed to dismiss as redundant between 20-99 staff within a period of 90 days or less within a College, School/RI/Service, section or budget centre; or
  • as soon as is reasonably practicable before the first dismissal is due to take effect, where it is proposed to dismiss as redundant fewer than 20 staff within a College, School/RI/Service, section or budget centre.

2.5 To initiate and facilitate consultation formally, the University will provide the relevant recognised Trade Union(s) with written information relating to its proposals, including the:

  • reasons for the proposals;
  • number and description of members of staff it is proposed to declare redundant;
  • total number of members of staff of any such description employed in the College, School/RI/Service, section or budget centre, directly affected;
  • proposed method of selecting the members of staff who may be identified as redundant;
  • proposed method of carrying out the dismissals in accordance with agreed procedures as appropriate;
  • period over which the dismissals are to take effect;
  • proposed redundancy terms, including whether provision is to be made for pay in lieu of notice, and the method of calculation, if other than that specified by employment legislation.

2.6 Such consultation will be meaningful to both parties, and conducted with the representatives of all staff who may be affected, with a view to reaching agreement on ways to avoid, to reduce the numbers of and to mitigate the consequences of the potential redundancies.

2.7 At the request of the individual member of staff, and at any pertinent stage in the process the University will also offer consultation on an individual basis with the relevant Head of School/RI/Service or nominee regarding the implications for the affected members of staff. Consultation with groups of affected staff will be conducted in conjunction with the territorial Human Resources Manager. Such consultation will also consider ways to avoid potential redundancies, including consideration of volunteers for redeployment, severance or early retirement. At all stages of individual consultation staff may be accompanied by a Trade Union representative or fellow worker.

2.8 Where a proposal(s) from an early stage points to a specific post(s) being identified as potentially redundant, a comprehensive review of the options will be carried out with the postholders in consultation with the relevant Trade Union representative or fellow worker.

2.9 The University will provide the relevant Trade Union(s) with a copy of any statutory notice supplied to the Department of Trade and Industry about the proposed redundancies.


3. Initial steps to avoid redundancy

3.1 Taking cognisance of the aims of Section 1.4 of the policy above, the University, in consultation with individual members of staff and the relevant recognised Trade Union(s), will seek to mitigate the effects of any potential reduction in staff numbers by fully considering all alternative courses of action to minimise or eliminate the need for redundancy. Such action may include:

  • reduction in non-staffing costs;
  • methods of increasing income to the College, School/RI/Service, section or budget centre affected;
  • reduction and/or termination of the use of external staffing resources e.g. agency staff;
  • non-replacement of staff following normal staff turnover;
  • restrictions on external recruitment in the staff categories affected or in areas to which staff may be redeployed;
  • where relevant, reducing or eliminating paid overtime;
  • reduction of hours of work or pay;
  • redeployment, relocation and/or retraining of members of staff to, and for, alternative types of work, or places of work within the University; and
  • the offer of voluntary early retirement or voluntary severance to staff within the College, School/RI/Service, section or budget centre affected, or elsewhere.

3.2 The scope to use any of these measures will be considered by the relevant College, School/RI/Service, section or budget centre, or the University Management Group as appropriate to the circumstances of each case, in consultation with relevant individual members of staff and the relevant recognised Trade Union(s).


4. Voluntary Redeployment

If suitable alternative employment is available in another College, School/RI/Service, section or budget centre, members of staff who might otherwise be potentially or actually declared redundant may be offered redeployment in accordance with the provisions of the University’s redeployment procedure in Section 7 of the policy below. At this stage in the process potentially redundant members of staff are under no obligation to agree to such a move.


5. Voluntary Severance

5.1 The University, in keeping with Section 3 of the policy above, will give full consideration to the scope to achieve the necessary reduction in the number of staff employed through voluntary severance.

5.2 Requests for voluntary severance will be accepted solely at the reasonable discretion of the University. In considering such requests, the University will be guided by the institutional interest and financial considerations. The Director of Human Resources or nominee will establish and apply the selection criteria and manage the voluntary severance scheme, in consultation with the management of the College, School/RI/Service, section or budget centre as appropriate. Under any voluntary severance scheme applications will be considered from a College, School/RI/Service, section or budget centre in the order below:

  • within the category of staff in the College, School/RI/Service, section or budget centre directly affected;
  • in another category of staff in the College, School/RI/Service, section or budget centre directly affected;
  • within the same category affected but in another College, School/RI/Service, section or budget centre, but only if the consequent vacancy could be used for the redeployment of a member of staff declared redundant elsewhere;
  • in another category and another College, School/RI/Service, section or budget centre, only if the consequent vacancy could, after a reasonable training period, be used for the redeployment of a member of staff declared redundant elsewhere.

5.3 Members of staff considered for voluntary severance may be eligible to receive a severance payment and/or pension supplementation according to the rules of the members’ pension scheme. In cases of voluntary severance the terms of any enhancement to the Statutory Redundancy payment will be made at the University’s discretion and may vary depending upon the circumstances of each redundancy proposal, taking account of equality and value for money considerations as appropriate. The University will consult with the relevant recognised Trade Union(s) on the terms of each scheme for voluntary severance under each redundancy proposal. Whilst minimum terms will normally be agreed for each redundancy proposal the University retains the right to offer additional terms on a case by case basis as appropriate.

5.4 Members of staff who leave the University through voluntary severance may only be eligible for re-employment after a suitable break in service, which will be a minimum of one month’s duration.


6. Voluntary early retirement

6.1 The University will consider applications for voluntary early retirement from all members of staff with two years’ continuous service regardless of the nature of the contract. However, any pension entitlement will be determined by the rules of the member’s pension scheme. In considering such requests the University will be guided by its institutional and financial requirements. The Director of Human Resources or nominee will establish and apply the selection criteria and manage the voluntary early retirement scheme, in consultation with the management of the College, School/RI/Service, section or budget centre as appropriate. The University will consult with the relevant recognised Trade Union(s) on the terms of each scheme for voluntary early retirement under each redundancy proposal. Whilst minimum terms will normally be agreed for each redundancy proposal the University retains the right to offer additional terms on a case by case basis as appropriate. In particular circumstances at the University’s discretion it may be possible for a member of staff requesting early retirement to receive a severance payment and/or pension supplementation.

6.2 Members of staff who leave the University through voluntary early retirement may only be eligible for re-employment after a suitable break in service, which will be a minimum of one month’s duration.


7. Redeployment

7.1 Eligible staff will be those volunteering for redeployment and those whose posts have been formally identified as provisionally redundant or who have received formal notice of redundancy. The redeployment procedure seeks to ensure that eligible staff are assisted to obtain suitable alternative posts within the University.

7.2 In seeking to provide suitable alternative employment, consideration will be given to the comparability of the new position with that previously held in terms of grade, rate of pay, hours of work, location and working environment. It is acknowledged that exact matches may not be possible; therefore flexibility and an open-minded approach will be necessary from both members of staff and management concerned. No available post should be dismissed from consideration solely on the basis that it is at a lower/higher grade or salary than that held by any provisionally redundant member of staff.

7.3 Eligible members of staff will be placed upon a Job Seekers’ Register which will be maintained by the Human Resources Service. Such staff will be required to provide a summary CV, with assistance provided as necessary, in a standard format identifying their key qualifications, experience, transferable skills and employment interests. The Job Seekers’ Register will retain such information, together with details of grade, title, School/RI/Service, and, where relevant, expected date of redundancy.

7.4 Prior to advertising vacancies, managers with vacancies will be expected to consider all staff on the Job Seekers’ Register to determine those who may satisfy the essential selection criteria for selection for interview, or those who could satisfy these criteria with reasonable retraining. Where it is unclear whether the member of staff could satisfy the essential selection criteria for selection for interview, with or without retraining, they will be offered the opportunity for interview regardless. A record will be kept of the reasons for selection or non-selection for interview. The reasons for non-selection for interview will be reviewed by the territorial Human Resources Manager and provided to the member(s) of staff concerned.

7.5 Identified staff would be interviewed to review suitability for appointment and required to submit a supporting application (in addition to the CV and details from the Job Seekers’ Register) in respect of such vacancies prior to the interview. The redeployment interview panel will normally consist of the manager with the vacancy and a manager of similar seniority from a cognate School/RI/Service.

7.6 Following the interview:

  • If the relevant member of staff fully satisfies the essential selection criteria, s/he will be offered the opportunity to be redeployed to the new position, subject to a mutually agreed trial period comprising the statutory four weeks’ trial. This period can be extended prior to commencement by mutual agreement should it be considered practical and necessary for retraining purposes;
  • If the member of staff could fully satisfy the essential selection criteria with a reasonable level of retraining, the nature, extent and means for gaining such retraining will be agreed with the recruiting manager, member of staff and Human Resources Service. The member of staff will be offered the opportunity to be redeployed to the new position, subject to satisfactory completion of the agreed retraining and to a mutually agreed trial period inclusive of the statutory four week’s trial. This period can be extended prior to commencement by mutual agreement should it be considered practical and necessary for retraining purposes;
  • If the member of staff is unsuccessful at interview written reasons will be provided to him/her indicating why an offer of the opportunity to be redeployed to this vacancy is not appropriate. The reasons for non-selection will be reviewed by the territorial Human Resources Manager.

7.7 In the event of redeployment to a lower paid post, the member of staff’s existing salary would be protected for a period of one year. Protected existing salary will mean basic salary without overtime or other non-contractual payments. During the period of protection the protected salary will be ‘frozen’ and thus not attract incremental progression. Where the alternative employment is for different hours of work, either more or fewer than in the existing post, this will be taken into account in determining the extent of salary protection.

7.8 Where a new or renewed contract is offered it will not normally be appropriate for the University to seek to terminate a trial period prematurely. However, following appropriate consultation with the member of staff and the territorial Human Resources Manager, trial periods may be terminated by the University at any time during the period if the redeployment is not considered successful for reasons arising directly from the change in role. If a trial period is not terminated before its completion the post must be confirmed. The member of staff may terminate a trial period, following appropriate consultation, unconditionally on the grounds that it is considered unsuccessful. If the member of staff remains in post they will no longer be eligible for redundancy pay.

7.9 Any member of staff who has received formal notice of redundancy, who unreasonably declines an offer of suitable alternative employment or unreasonably terminates a trial period in that employment, will normally forfeit the right to redundancy pay.

7.10 Where there is a dispute over the reasons for non-selection for interview or redeployment, or the suitability of alternative employment, or whether a trial period was terminated unreasonably, the matter will be reviewed by the territorial Vice-Principal together with a Human Resources Manager not previously involved upon the written submission from the relevant member of staff or manager as appropriate.

7.11 Staff who are redeployed will receive a written statement of the terms of their amended contract; continuity of service and service-related benefits will be protected. Staff accept as a condition of redeployment to undertake appropriate retraining as deemed necessary by the University.

7.12 If having applied this procedure there is no interest in a vacancy or no appointable candidate, only then will the vacancy be advertised. It is expected that the redeployment selection process will normally be completed within 3 weeks.


8. Miscellanaous

8.1 Members of staff dismissed under the University’s Disciplinary Procedure whilst under notice of redundancy will forfeit any entitlement to a redundancy payment, regardless of whether the redundancy was to be voluntary or compulsory.

8.2 Where, following appropriate consultation, the University Court concludes that alternative means have failed to avoid sufficiently the requirement for redundancy, the University will use the Management of Compulsory Redundancy Protocol to implement compulsory redundancies.


January 2002
Final Version: Management of Organisational Change Policy: Avoidance & Mitigation of Redundancy


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