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Redundancy and Redeployment Frequently Asked Questions

1. What is redundancy?

Redundancy is a form of dismissal. A genuine redundancy only arises in three very narrowly defined circumstances:

• the closure of the business,: • the closure of a particular workplace – for example an academic unit, department, course, unit or office/building: • a reduction in the need for employees – the test being not whether an employer needs fewer employees, but whether it needs fewer employees to do work of a particular kind. This could be due to restructuring.

The key point to remember initially is that it is the post that is redundant and not the employee. Once it has been decided that a post is redundant, the question is what will happen to the employee or employees who hold that post.

For a redundancy to be genuine, the role must disappear. New staff may still be recruited, but not to undertake the post the redundant employee was doing.

A redundancy does not necessarily have to arise from the need to make financial savings. It is possible that other reasons, such as changed priorities, new technology or processes, could drive the need to restructure the workforce which may lead to potential redundancies.

2. What is redeployment?

Redeployment is an attempt to secure suitable alternative employment for employees within the University. The need for redeployment may occur for a number of reasons, including redundancy. The University has a Redeployment Procedure which details the process. If an employee is placed ‘at risk’ of redundancy they will then have redeployee status which means they have prior consideration for any vacancies that arise.

For further information regarding Redeployment, please see http://www.soton.ac.uk/hr/working/policies/redeployment.html

3. What do I need to communicate to the affected employees and relevant trade unions?

Communication is key to ensure that both affected employees and the relevant trade unions are informed of the potential redundancy situation as soon as possible. Consideration must be given to the wider impact of a potential redundancy situation e.g. staff morale and motivation, reputation of the unit both internally and externally to the organisation, the ability of other academic units or services to operate etc.

See question 15 about what information should be supplied to employees and trade unions in a redundancy situation.

4. What actions should be considered in order to avoid redundancies?

Effective strategic planning can help to determine existing and future staffing needs. Making employees redundant is a last resort and prior to this suitable alternative work (firstly within the Academic Unit or Department and then University wide) should be considered in line with the University’s Redeployment Policy. Voluntary severance, early retirement and flexible work for staff at risk should also be explored, as should development to enable employees to move into a different role.

5. Is it important to follow the University procedure?

Yes, it is very important. Making an employee redundant is viewed as one of the potentially fair reasons for dismissal in employment law. The University’s procedures are written to adhere to statutory requirements and to follow good practice. To meet the University’s aim of treating all staff at risk of redundancy in a fair and reasonable way and to minimise the risk of legal challenge, HR will support managers in following these procedures.

6. If a formal redundancy procedure has been instigated, does this mean that redundancies will definitely be made?

No. Until determination is made by the appropriate body no decision will have been reached. Even if the determination is that redundancies are to be made, alternatives (such as redeployment) will continue to be explored for as long as possible.

7. What does ‘determination’ mean?

A proposal for redundancy must go to the relevant “determination body”. This body will consider the proposal and determine whether the next stages in the procedure/ordinance should be instituted. Once this determination is made the next formal stage of the process can begin.

8. What are the timescales for each stage of our procedure?

There are no prescribed timescales as these will depend upon the scale of the proposal, the availability of the decision makers, the committee schedule and the numbers of staff affected. Managers will make the decision as to whether staff should be made aware of the situation from a very early stage or whether a much shorter process suits the circumstances better. Consultation will always commence as soon as possible after a proposal has been clearly defined. However, the period between opening consultation with employees and trades unions and giving notice would normally not be less than 30 days. HR can advise on the best way forward and the statutory requirements for each situation.

It is advisable when embarking on this procedure that a clear timetable of events is drawn up, scoping the whole process in a clear and concise way. To do this, careful consideration must be given in terms of timescale for consultation, the set dates for the meetings of relevant determination bodies, notice periods etc. For an indication of timescales, a reorganisation can take up from six to nine months to fully implement.

See question 23 for the steps taken during a redundancy procedure.

9. What is consultation?

Consultation needs to be meaningful and not merely informing employees and trade unions of the situation. Relevant information should be shared with both employees and trade unions at an early stage and an open dialogue should be entered into so alternatives to redundancy can be explored. Individual consultation is necessary for ALL redundancies. The relevant University procedures take account of this and sufficient time must be allowed for receiving representations and responding to these.

10. Can an electronic recording of interviews and meetings be taken?

No, neither the manager nor an employee can insist on making an electronic recording of any interview or meeting.

In exceptional circumstances it may be appropriate to agree to a recording where the employee is disabled and requests such a recording as a reasonable adjustment to the usual procedure to enable them to cope with the process or where English is not the first language.

The usual course of action for producing a record of meetings is for another employee with note-taking skills to attend and take notes on a confidential basis. The employee and their companion are also free to take their own notes.

11. What does “at risk” mean and why are employees put “at risk”?

An employee is put “at risk” if, following a determination that redundancies need to be made, they are in the pool of staff whose post could be made redundant. It is important to remember that it is the post and not the individual who is at risk. Employees whose posts are at risk will be invited to individual consultation meetings with their manager and HR, and employees will have the opportunity to make further representations before a final decision is made.

12. What rights do employees under threat of redundancy have?

Employees who are at risk have the right to redeployment across the University in line with the University’s Redeployment Procedure. In addition, employees who are under notice of redundancy have a statutory entitlement to a reasonable amount of time off to look for another job, attend interviews or arrange training.

13. Should part-time, and fixed-term staff be included in a redundancy consultation?

Normally full-time, and part-time employees will all be included. This usually includes those on fixed term contracts.

It is necessary to decide carefully which members of staff should be included in the consultation process.

If a manager is in doubt, then they should err on the side of caution and include all individuals who might be affected in the process, after taking advice from HR. The following points should be borne in mind:

• Everyone with the status of “employee” should be included in the consultation. • Temporary or fixed-term employees enjoy the same employment rights as their permanent counterparts, including the right to be included in the consultation process and to receive a redundancy payment. • It is against the law to choose employees for redundancy or treat them any differently during the redundancy process just because they are part-time employees. Part-time employees should be included in the redundancy process in the normal way. • The expiry of a fixed-term contract counts as dismissal for employment law purposes. Therefore, fixed-term employees must also be included in the redundancy process if their fixed-term contract ends after the proposed termination date.

14. What about the ending of a fixed-term contract at its expiry date?

The ending of a fixed-term contract at its expiry date may also be a redundancy. Ordinance 3.8: Fixed Term Contracts Procedure addresses this scenario.

15. Can an employee who is pregnant or on maternity leave be placed in the pool for selection for redundancy in the same way as other employees?

The basic position is that a pregnant employee or one on maternity leave can initially be treated the same as other employees. However, if employees on maternity leave are selected for redundancy, special provisions concerning offering alternative employment apply to protect them. As long as a fair selection process is applied across the pool for selection, it is possible that a pregnant employee or one on maternity leave may be selected as at risk of redundancy. Obviously pregnancy (or absence on maternity leave) must not be used as selection criteria for redundancy. This would be unlawful under employment discrimination legislation. If absence is one of the selection criteria to be used for redundancy, then any absences that relate directly to the pregnancy or to time off for dependents should be disregarded in the scoring to avoid any inference of discrimination. Employees who are pregnant or on maternity leave should be notified of the redundancy process, invited to redundancy consultation meetings, included in the pool and considered for redeployment in the usual way, communicating with them in the most appropriate way. However, if employees who have actually commenced their maternity leave are selected for redundancy then special provisions apply to them. They must be given first refusal on any available suitable redeployment opportunities. All employees who are made redundant while absent on maternity leave are entitled to written reasons for their dismissal whether this has been requested or not.

16. What information should be supplied to employees and trade unions in a redundancy situation?

At the preliminary stage a report outlining the proposal should be given to employees likely to be affected and the trade unions. This is likely to include much of the same information as will be included in the notification to the determination body (See Ordinance 3.4 paragraph 15 and Redundancy Procedure paragraph 16). Once a determination has been made that redundancies will take place, the manager should submit the following information to employees and trade unions: • the reasons for the proposals; • the numbers and descriptions of the employees who are at risk, including the total number in the pool for selection; • the method proposed for selecting employees to be dismissed including any agreed procedures and timescales for the dismissals; • if there are to be enhanced redundancy packages, the proposed method of calculating such redundancy payments. HR will help in compiling this information and will communicate it to employees and trade unions.

17. What is the role and responsibilities of the relevant trade unions in a redundancy situation? Trade unions represent employees in the workplace. Their role is to support their members through the process and consultation. They may also be consulted regarding any selection criteria that may need to be applied.

18. What are the common selection criteria for redundancy and how should they be applied?

The key aspects of selection criteria for redundancy are that they must be completely objective, non-discriminatory, reasonable and applied consistently. Common criteria used in selection for redundancy include: • skills or experience; • formal appropriate qualifications, advanced skills and other aptitudes; • attendance records (but excluding any absences which were due to pregnancy or disability, to avoid discrimination claims); • disciplinary records (current offences); • performance (with objective evidence to support selection on this basis, for example by reference to the PPDR or to academic output). This list is not exhaustive and the University has the right to change or add criteria in recognition of the prevailing, changing circumstances in consultation with trade unions. HR should always be consulted before the criteria to be used are finalised. Once the selection criteria have been identified, consideration needs to be given to a relevant scoring mechanism. If the score sheet method is being used as the proposed method of selection the employees should be aware of this from an early stage. Obviously it is preferable for the selection process to be transparent to all those involved.

19. What reasons should not be used as a basis for redundancy selection?

Length of service was often previously used as criteria for selection. However, with the arrival of age discrimination in October 2006, relying on length of service as sole or main selection criteria runs the risk of being found to be discriminatory on grounds of age and therefore unlawful. Length of service may be used in certain situations where this can be justified. Whatever selection criteria are chosen, care needs to be taken to ensure that they are neither directly nor indirectly discriminatory on grounds of age, sex, marital status, race, disability, sexual orientation, or religion or belief. Particular care should be taken to ensure that selection criteria are not indirectly discriminatory. For example, selecting part-timers for redundancy may amount to indirect discrimination against women. In addition, there are a number of criteria which automatically make a dismissal unfair. These include: • any reason relating to maternity leave, birth or pregnancy or any other family leave, paternity leave, parental or dependants leave; • disability; • membership or non-membership of a trade union; • exercising a statutory right (for example, asking for a written statement of employment particulars); • whistle blowing; • taking part in lawful industrial action lasting 12 weeks or less; • taking action on health and safety grounds; • doing jury service. Always take advice from HR when deciding on the criteria to be used. It should also be noted that, even though the criteria may be objective, the selection will still be unfair if they are subjectively, carelessly or mistakenly applied.

20. How should consultation take place with employees on long-term sickness absence or those absent from the University for other reasons?

Employers should take great care to ensure that women on maternity leave, those employees on sabbaticals or on secondment, and those on sick leave are included in the consultation process and kept fully informed of the situation. Staff who are not present on campus at the time of the proposal should be invited to joint and individual consultation meetings in the same way as all other staff. If they are unable to attend these meetings then it may be appropriate to offer a meeting at their home. If this is not appropriate, then they should be kept informed by other means, such as letter or email. .

21. Can an employee resign once they have been issued with a redundancy notice and if they do so, will they lose their redundancy payment?

An employee may submit their resignation during the notice period by giving written notice (counter-notice) that they intend their employment to end on a date earlier than the date on which the University's notice expires.

Unless the University objects to early departure, the employee may leave early with a redundancy payment and will be paid up to their new departure date.

22. How is a redundancy payment calculated?

The statutory redundancy payment due to each employee depends on age and length of continuous service (up to a maximum of twenty years). This determines the number of week’s pay due, which is then subject to a limit on weekly pay.

Employees must have two years continuous service with the University before becoming entitlement to a statutory redundancy payment.

To calculate the number of weeks pay due, the following amounts are used:

0.5 week’s pay for each full year of service where age during the year is less than 22

1.0 week’s pay for each full year of service where age during the year is 22 or above, but less than 41

1.5 week’s pay for each full year of service where age during the year is 41 or over.

Formal confirmation of redundancy payments will be provided in notice letters.

In some circumstances consideration may be given by the University of Southampton to paying an enhanced redundancy payment. Any such payment is strictly discretionary, not guaranteed, specific to the needs of the Academic Unit/service undergoing reorganisation and granted on a scheme-by-scheme basis.

23. Can an employee who is to be made redundant be paid in lieu of notice or placed on garden leave?

An employee is entitled to a period of notice as well as a redundancy payment. Once the redundancy process has been completed and the employee has been given notice of dismissal then the employee can be asked to work the notice period, be offered a payment in lieu of the notice period or be placed on garden leave. The fact that there is a redundancy makes no difference to the legal position. Most University contracts do contain a provision for payment in lieu of notice, but individual circumstances should be checked with HR. It is not unusual for a redundancy package to encompass a garden leave period if this is considered to be in the best interests of both the University and the employee.

23. What steps have to be taken when considering making a post redundant?

| |Step |Business Activity |By |Ordinance 3.4 |Redundancy Procedure |
| | | |Whom |Redundancy Procedure |Levels 1-3 |
|1 |Need to reorganise, restructure or |Business need identified or |Dean or Head of | | |
| |lose staff becomes apparent |instruction to change is made. |Professional Service., | | |
| | |Alternatives to redundancy explored |Senior Managers, HR | | |
|2 |Case is made |Issues analysed. |Manager | | |
|3 |Permission obtained to proceed |Case approved by relevant body |UEG, budgetary group, | | |
| | | |line management, etc | | |
|4 |Proposals developed |Case drafted as a report to share with|Manager | | |
| | |staff. | | | |
| | |Issues of communication, consultation | | | |
| | |and implementation covered. | | | |
|5 |Proposals communicated to staff |Briefing session with staff (preceded |Manager/HR | | |
| | |by individual meetings if necessary) | | | |
| | |and informal briefing to trade unions | | | |
|6 |Consultation commences |Consultation report sent to staff and |HR |Stage 1 |Stage 1 |
| | |trade unions | |paragraph 13 |paragraph 14 |
|7 |Consultation closes | | |Stage 1 |Stage 1 |
| | | | |paragraph 13 |paragraph 14 |
|8 |Manager considers representations |All views taken into account by |Manager | | |
| |received |manager | | | |
|9 |Report containing final proposal | |Manager | | |
| |prepared | | | | |
|10 |Manager obtains permission to proceed |Case approved by relevant body and |UEG, budgetary group, |Stage 1 |Stage 1 |
| |with final proposal |local redeployment commences |line management, etc |paragraphs |paragraph 16 |
| | | | |15-16 | |
|11 |Details of final proposal shared with |Briefing session |Manager/HR | | |
| |staff and trade unions | | | | |
|12* |Manager seeks determination to make |Report prepared and submitted to next |Council, UEG, budgetary |Stage 2 |Stage 2 |
| |redundancies |available meeting |group, line management, |paragraph 17 |paragraph 17 |
| | | |etc | | |
|14 |Selection of staff for redundancy | |Redundancy Selection |Stage 4 |Stage 4 |
| | | |Panel | | |
|15 |Individual consultation meetings |All staff still “at risk” are met |Manager/HR |Stage 4 |Stage 4 |
| | | | |paragraph |Paragraph |
| | | | |26 or 28 |26 or 28 |
|16 |Notice given |All staff still “at risk” given |HR |Stage 6 |Stage 6 |
| | |contractual or statutory notice | |paragraph 32 |paragraph 32 |
|17 |Appeal procedure |Employee able to appeal the decision |Employee |Paragraphs |Paragraphs |
| | |to select them for redundancy | |33-45 |32-44 |
|18 |Employee’s dismissal takes place |Any employee not redeployed or had | | | |
| | |their appeal upheld by last day of | | | |
| | |service ends employment | | | |

Notes:

* Until this point is reached no official decision has been made by the University and no employee is “at risk” of redundancy

The timescale between points 1 and 17 will depend upon the scale of the proposal, the availability of the decision- makers, the Committee schedule and the numbers of staff affected. There would normally be a minimum of 30 days between points 6 and 16

24. What support does the University offer to staff at risk of redundancy?

There are a number of people who employees at risk of redundancy can turn to for support and advice. These include:

• their managers; • HR contacts; • the University Counselling Service; • the Occupational Health Department.

Requests for training or development will be given serious consideration by managers. In addition, support can be arranged by way of advice on compiling CVs, applications for jobs and interview techniques. These can be accessed through HR.

25. I have tenure, how can the University make me redundant?

Academic staff who were appointed to their post prior to 20th November 1987 and who have not been promoted since that date may have ‘tenure’ under the Education Reform Act 1988. The University has been advised that this does not mean that such a person can never be made redundant. However, tenure may affect the procedures that are followed in relation to such a person during the redundancy process.

26. Does being subject to a redundancy process undermine my academic freedom?

Specific protection for academic freedom is embedded within the University’s governing Statutes. Paragraph 2 (1) (i) of Part 1 of the University Statutes Section 31 provides that the University’s Ordinances (which would include the Redundancy Procedure at Ordinance 3.4) allow for the concept of academic freedom.

27. I am considering restructuring of my team/department where can I get further advice and support?

If you are considering restructuring or a reorganisation you should ,in the first instance, contact your HR Client Partner., Contact details can be found on the HR Website; www.soton.ac.uk/hr/about/advicecentre.html

28. I have an employee who is nearing the end of a fixed-term contract, where can I get further advice and guidance?

If you have an employee(s) on a fixed-term contract that is due to come to an end, finish earlier than its anticipated end date, or have an potential individual redundancy situation, in the first instance you should contact your HR Adviser, contact details can be found on the HR Website: www.soton.ac.uk/hr/about/advicecentre.html

29. I may be facing a potential redundancy situation myself, where can I get further advice and support?

If you are an employee and concerned about a potential redundancy situation, in the first instance, you should discuss this with your line manager. If this is not appropriate then contact your trade union. Further details on redundancy and redeployment can be accessed via the HR website:

Redundancy Procedure – Academic Staff and Levels 4 and above, www.soton.ac.uk/hr/forms/statute/index34.html

Redundancy Procedure for Levels 1-3 www.soton.ac.uk/hr/managing/severance/redundancy.html

Redeployment and Redundancy Guide. www.soton.ac.uk/hr/working/policies/redeployment%20guide.doc

This document is designed to provide general guidance to staff at the University of Southampton. It does not form part of your contract of employment. If you need specific advice on your personal situation you are advised to contact your trade union, legal or financial adviser. The University reserves the right to amend the contents of this document at any time.