Generating Efficiencies: Maintaining Effectiveness

Recruitment Freezes

Pay Restraint

Outsourcing

Restructuring & Redundancy

Relocation of StaffShared Services

Cessation/reduction of services

Cutting agency/contractStaff

Agile Working

Flexible/Agile Working

• Top of the agenda

• Government Consultation on Modern Workplaces

• Olympics

• CIPD Report May 2012– 96% of employers offer flexible working (most commonly part-time and home working)

Working Beyond Walls (Flexible Working In Government) Report

• Work is “something we do not somewhere we go” (Sir Gus O’Donnell)

• CAVE - Computer Animated Virtual Environment Sound like the Jetsons at work!? Sound expensive!?

• But by 2020 home working will be a natural way of working for most people.

The “Conventional” Approach

• Overly burdensome/a necessary evil

• Legalese-implications of refusing flexible working requests Direct/indirect sex discrimination complaints Breach of Flexible Working Regulations Constructive dismissal complaints

Public Sector – Additional Considerations

• Necessity is the mother of invention

• Flexible working is being embraced by the public sector as a potential driver of efficiency rather than a blocker.

Types of flexible working

• Part-time working• Compressed hours• Annualised hours• Job share• Term time working• Home working

Benefits of flexible working

• Reduced overhead costs

• Increased productivity

• Reduced absence

• Wider skill pool/retention

• Reduced impact of external interruptions

Drawbacks

• Reduced control/visibility

• Support/mentoring difficulties

• Over reliance on technology – business risk?

• Over-blurring of the lines between home and work – increased stress?

• Disconnection/socialisation

Making the arrangements work effectively – the tricky bit!

• Contractual considerations• Data protection/information security• Arrangements on termination• Health and safety• BYOD – not to be confused with BYOB…• Avoiding discrimination/less favourable treatment

allegations

Contractual considerations

• Hours of work - establish the boundaries• Absence - holidays and illness reporting• Place of work - flexibility works both ways• Salary and benefits - avoid less favourable treatment• Expenses - specify who is responsible for what• Right to enter - employer may need access• Discipline and grievance

Data Protection & Information Security

• Requirement to take appropriate technical and organisational measures against unauthorised processing, accidental loss or damage to personal data.

• Processing includes obtaining, recording, or holding information or carrying out any set of instructions on it – very wide.

• Definition of personal data also wide.• ICO has the power to impose fines of up to £500,000 per

incident.

Some cautionary tales

• Unencrypted laptops Hounslow Council – fined £70,000 Ealing Council – fined £80,000

• Inadequate IT security on website Andrew Crossley/ACS Law – fined £1,000

• Theft of sensitive papers in a pub Croydon Council – fined £100,000

• Sensitive papers dropped in the street Lancashire Constabulary – fined £70,000

• Theft of memory stick from employee’s home Greater Manchester Police – fined £150,000

Effective Data Protection Measures

• Specific training• Conduct risk assessment in line with ICO’s Statutory

Guidance• Specify who accesses computer and personal data stored

on it• Home Security – is employee’s home left unattended for

regular periods?• Use of passwords and encryption – sharing

forbidden/instructed to change regularly?• Storage and security of paper files• Transporting information between home and office• Rules on retention and disposal of information

Obligations on termination/confidentiality

• The implied duty is more difficult to police where employees work from home.

• Insert a specific confidentiality clause in a home worker’s contract clearly set out what information is confidential and how it

requires to be secured. importance of the right to enter and obligation to return

information on termination of employment.

Health & Safety considerations

• Employer’s basic obligation – take care of employees’ welfare and health and safety “so far as is reasonably practicable”

• In the context of home working consider – Stress – work/life boundary and isolation/socialisation issues. Equipment – suitable, maintained and inspected regularly Electricity at work – Electricity at Work Regulations 1989 – who

knew? First Aid – responsibility to supply appropriate provisions Accidents – establish proper procedure for reporting of accidents

Use of equipment

• Home workers and peripatetic workers increasingly allowed to use own equipment

• It even has its own term (BYOD) and its own ACAS Code of Practice

• Making BYOD work effectively- Security Ensure right of access either physically or remotely to wipe

data (restrict liability for loss of personal information). If contributing to cost, require repayment if employee leaves Clear misuse policies and instructions all the more important

Flexible working will not be effective if it leads to discrimination/ less favourable treatment allegations

• Part-time Workers (Prevention of Less Favourable Treatment) Regulations 2000 Unlawful to treat part-timers less favourably unless this can

be objectively justified Pro-rata principle will generally be applied unless this can be

shown to be inappropriate

• Sex discrimination - less favourable treatment of flexible workers will often amount to indirect sex discrimination Audit levels of pay and benefits, access to training and

promotion and employment opportunities for flexible workers as compared to office based workers

What’s in a name?

• Unilever – “agile working”

• Siemens – “location independents”

• Plantronics – “smarter working”

• O2 – “desk huggers” or “desk hoppers”

• Competition time…..

Redundancy

Redundancies still on the agenda for 2012/2013 Public sector tradition of VS and VER Increase in compulsory redundancy in public sector

VS schemes have not achieved required efficiencies Those prepared to leave on VS have already left Labour market tight – reluctance to volunteer

Public sector line managers less equipped to address “survivor syndrome”?

Levels of morale low due to relentless cuts.

Generating Efficiency: Sustaining Effectiveness

2 key issues (1) Legal process

Identifying redundancy situation Selection criteria; identifying appropriate pools Alternative employment/trial periods Consultation Importance of getting it right – financial and reputational risk

(2) Employee engagement challenge

Legal Process – Some Hot Spot Issues

Employees on maternity leave Consultation Special protection

Sickness absence/disability Volunteers Discrimination and grievances Fixed term contracts Secondees

Maternity leave - consultation

Basic rule - don’t forget about employees on maternity leave!

Communicate with employees on maternity leave and consult if possible

Let them know about suitable alternative vacancies

Pregnant employees (not on maternity leave at the time when the redundancy dismissal takes effect) should be treated the same as any other employee

Maternity Leave – Special Protection

Regulation 10 MPL Regs. – right to be offered suitable

alternative. Controversial – appears to create preferential

right for those on maternity leave

Applies to those on leave at the time of redundancy

Two scenarios: diminished headcount – maternity leaver is not ‘protected’ in

selection role re-design – maternity leaver has preferential right to

alternatives that are created in the new structure.

Sickness Absence/Disability

Basic rule - don’t forget about those who are absent for medical reasons

Disabled employees – no right to a vacancy but reasonable adjustments must be considered to ensure that competition for vacancies is on a level playing field.

additional designated support adjustment of the selection process required?

Employee absent during process due to ill health – obtain medical input

Discrimination and Grievances

Outstanding unconnected grievance Grievance can be dealt with or parked until after the redundancy

process has concluded - weigh the risk

New complaint not connected to the process Complaints about historic bullying etc. by people not involved in

the process can be dealt with separately or parked until the process has completed - acknowledge complaint and communicate proposals to deal with it

Complaint about the process/scoring Complaints about the process itself need careful handling and

may have to be connected to the consultation/appeal process

Fixed Term Contracts

Termination of fixed term contracts and collective consultation Is termination due to redundancy or for a reason relating to the

individual employee?

Non-renewal of fixed term contract is a dismissal

Do fixed term employees need to be included in the selection pool? If the job was going to finish anyway, regardless of wider job

reductions, fixed term employees need not be included in the pool

If the contract is not being renewed because of a wider job reduction programme, they should be included in the pool

Secondees

Consider at outset what the ‘status’ of the seconded role

is:- are they now more or less permanent? is it clear that they will be returning to their original base?

If they are more or less permanent in their seconded role,

they may be able to be considered within the seconded

area If original role still exists, is this alternative employment?

Addressing Morale/Survivor Syndrome

Effective management of redundancy more than a legal issue

Redundancy = change = emotional response

Tools to address the emotional response Communication Empowerment Management influence

Tools can be used in legal consultation to improve morale throughout the process and beyond

Consultation

Remember legal obligations Collective - currently

20 – 99 in a 90 day period = 30 day consultation period Greater than 100 = 90 day consultation period

Individual

Consult on Reasons for proposal; timescales, pools, selection criteria, basis

for selection, redundancy package, alternative roles, support available…

How do you make it “fair”?

Formative stage Adequate info: adequate time Conscientious consideration of employee’s/reps’ response

Personal Reaction to Change/Trauma

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TESTING

DEPRESSION

BARGAINING

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Stage of consultation Emotional response Some management responses

Announcement/initial meetings

Shock/denial Communicate as much information about process as possible

In between initial consultation meetings

Anger/Fear Be available; open honest, willing to help

Selection, moving into individual consultation

Bargaining Listen; be open; non-judgemental, coach

Selection and looking for alternatives

Depression Be sensitive, offer support and assistance

Termination/Continued employment

Testing/Acceptance Awareness of support offered, removal of tasks, team building mode