The Education HR in the North West ConferenceJanuary 2018, ManchesterKey requirements to ensure a fair redundancyprocess

Overview

This session aims to explain thelegal aspects of a redundancyprocess and to provide tools toensure a fair and painlessprocess.

Sli.do – vote now

Are you expecting to go through a redundancy exercisewithin the next 2 years?YesNo

Key facts

• £2.8bnhas been cut from school budgets since 2015

• £54.0kaverage cut to primary schools

• £205.6kaverage cut to secondary schools

“Recent figures show that more than9,400 schools – over one third of stateschools – were in deficit in 2015-16.Almost 4,000 of them have been indeficit in each of the past two years,with almost 1,600 in deficit threeyears in a row.”

TES – October 2017

Alternatives - TLR restructure

Is your TLR structure fit for purpose?• 3 year safeguarding• consider commensurate duties

Alternatives – a case study

• Large Secondary Academy – Extremely high absence(costing circa £400,000 per year).

• Return to work interviews not being done – poor absencemanagement process

• Principal began doing all return to work meetings for 3months then passed to VP – absence levels droppedacross the Academy – after year 1 absence cost reduced£120,000 – still high.

Where to start with a staff restructure…

• Know your policy and the timescales required• Plan in advance so you meet the deadlines

• Make sure you know your school well• Who does what/when• Skills• Second subjects/other specialisms

• Death by a 1000 cuts• Review the whole staff structure• Design a structure that meets the school needs and is

financially sustainable• Take out the people and look only at jobs

The success is in the planning

Do not underestimate the importance of planning.

Don’t wait to take action

“Why did you wait until the figurewas £1,000,000. Surely at £100,000action should have been taken”

Union

Planning - Costs

• Pay protection:• 3 years for Teachers; and• typically 1 year for support staff if redeployed to other

roles on lower pay.• LGPS members who are 55 or over must access their pension

if made redundant and the employer must meet the cost ofpension strain – get costs in advance.

• Check your policy to see if you offer enhanced payments.• Check your funding agreement as the ESFA may fund

redundancies (in some but not all cases).

Sli.do – vote now

When is the best time to start consultation for teaching staffredundancies if you wish to implement a new structure on 1September?

1. The previous September2. The start of the calendar year3. After February half term4. Easter5. May

Planning - Timings

• Consider contractual notice periods• Teachers – October, February and May• Support staff – no specified dates (up to 12 weeks)

• If restructure involves teachers - work back from the noticedates and ensure steps in policy including dismissal meetingshappen in time.

• Don’t forget half term – exclude for the purpose of theprocess.

• Contingency for slippage of dates.

Timeframe - example

Action Date

Trade Union Officials notified w/c 9th January 2018

Formal announcement staff meeting 16th January 2018

Individual Consultation Meetings w/c 23rd January 2018

Consultation Ends 3rd March 2018

Selection Process Begins 15th March 2018

Outcome of selection process communicated w/c 21st April 2018

Formal dismissal meetings (if applicable) w/c 10th May 2018

Appeals (if applicable) June 2018

Outcome of Appeals (if applicable) June 2018

Termination Date 31st August 2018

20 or more redundancies

• HR1 Form – must be completed if 20 or more staff are at risk– if you miss their notice periods you cannot make anyredundancies.

• Consultation periods are longer if 20 or more redundancieswithin a 90 day period.

The Business Case

• Summarises the case for the restructure and who and howstaff are affected.

• The enabling process should be included; along with atimeline.

• Include current and proposed organogram and financialimplications.

• Send to trade unions.• Staff also receive a copy – including absent staff.• This forms the basis of consultation.

Voluntary Redundancy

• Consider voluntary redundancy to reduce the number ofcompulsory redundancies.

• Offer to affected staff or any?• Must state they will be accepted on an individual and case

by case basis ensuring the needs of the school and pupils aremet.

• Can incentivise by paying in lieu of notice.

Consultation

• Timing – statutory or policy• One-to-one meetings (notes taken) with employee and rep

(if applicable).• Have redundancy figures ready and decide in advance about

any enhancements for volunteers.• Staff can raise very genuine points/proposals during

consultation which may alter the new structure – that is thepoint of consultation.

Support for displaced staff

• Where a MAT, duty to consider suitable alternative roles inother Academies.

• Paid time off for interviews.• Support with interview tips/CV.• Time to access support from trade union.• Be aware some staff may not have applied for a job in a

number of years.

Expecting the unexpected

Internal impact• Strikes- rolling ballot – internal impact• Vote of no confidence in Head• Pupil performance – restructure typically during exams• Demoralised employees – ‘survivor syndrome’

Survivors

Restructures can make those who are ‘surviving’ therestructure go through ‘survivor syndrome’:

Survivor symptoms

• Fear, insecurity anduncertainty

• Frustration, anger andresentment

• Unfairness, betrayaland distrust

Organisational outcomes

• Decreased morale• Reduced motivation• Reduced engagement• Risk avoidance• Loss of performance

Expecting the unexpected

External impact• Media – local news• Ofsted – parents/staff writing to OFSTED• ESFA – concerns with finance management and not being

able to demonstrate balanced budget

Final thought – an opportunity on T&Cs

If you could design contractsfrom scratch, would they

include pay protection, suchas enhanced sick pay etc.?

www.brownejacobson.com/education

Heather Mitchell| 0207 871 8511 | heather.mitchell@brownejacobson.comGill Martindale | 03300 452110 | Gill.Martindale@brownejacobson.com

Please note

The information contained in these notes is based on the position atJanuary 2018. It does, of course, only represent a summary of thesubject matter covered and is not intended to be a substitute fordetailed advice. If you would like to discuss any of the matterscovered in further detail, our team would be happy to do so.

© Browne Jacobson LLP 2018. Browne Jacobson LLP is a limitedliability partnership.