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DofI: XXXXXXXXX Author Ref: DofHR,IT&CS/HRM SO Vol 4/35

DP#5653

Service Information System

SUBJECT: REORGANISATION/REDUNDANCY/

REDEPLOYMENT PROCEDURE

SUMMARY:

This policy is designed to enable Essex County Fire and Rescue Service managers to handle

Reorganisation/Redundancy/Redeployment issues in a legal, ethical and professional manner.

FURTHER INFORMATION:

• The Employment Rights Act 1996

• The Employment Equality (Age) Regulations 2006

• The Local Government (Early Termination of Employment) (Discretionary

Compensation) (England and Wales) Regulations 2006

• Local Government Pension Scheme Regulations 1997 (as amended)

• The Redundancy Payments (Continuity of Employment in Local Government)

(Modification) Order 1999 SI 1999/2277 (as amended)

• Trade Union and Labour Relations (Consolidation) Act 1992 (HR, SHQ)

• Trade Union Reform and Employment Rights Act 1993 (HR, SHQ)

• Collective Redundancies and Transfer of Undertakings (Protection of Employment)

(Amendment) Regulations 1999 (HR, SHQ)

• Collective Redundancies Directive 1998 (HR, SHQ)

• Disability Discrimination Act 1995 (HR, SHQ)

• Human Resources Department, Service Headquarters

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PRIMARY INFORMATION

1. Introduction Page 5

2. Scope of the Procedure Page 5-6

3. Avoiding a Redundancy Situation Page 6

4. Declaring a Redundancy Situation Page 6-7

5. Consultation with Employee Representatives Page 7-8

6. Appointment/Selection Process for Posts in the New Structure Page 8-10

7. Pay Protection Page 10-11

8. Employees "At Risk" of Redundancy Page 11

9. Redeployment for Employees not Securing a Post in the New Structure Page 12-13

10. Right of Appeal Page 13

11. Calculation and Authorisation of Redundancy Payments Page 13

SUPPORT INFORMATION

1. Example of Declaration of a Redundancy Situation Form Page 14-15

2. Example of Consultation with the Trades Union – Model Letter Page 16

3. Example of Preference Form Page 17

4. Example of Reorganisation Procedure – Selection Form Page 18-20

5. Example of Dismissal due to Redundancy Letter Page 21-22

6. Example of Job Matching Form Page 23

7. Example of Alternative Employment Model Letter Page 24-25

8. Details of Redundancy Benefits Page 26-29

APPENDICES

A Statutory Redundancy Payments Ready Reckoner Page 30-31

B Discretionary Compensation Payments Ready Reckoner Page 32-33

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REORGANISATION/REDUNDANCY/

REDEPLOYMENT PROCEDURE

In any reorganisation/redundancy situation, ECFRS will:-

� Implement measures aimed at avoiding redundancy

wherever possible.

� Ensure that effective consultation and communication takes

place with employees and trade union representatives in

accordance with statutory requirements and good employee

relations practice.

� Provide opportunities for support and development for

affected employees.

� Ensure that employees "at risk" of redundancy have

priority status in recruitment to vacant posts, along with

other displaced employees such as cases of medical

redeployment or employees with a disability (as defined by

the DDA 1995) who are no longer able to carry out the

duties of their job.

� Ensure that the competencies and experience of employees

are appropriately matched to the new jobs in the

organisation.

� Implement measures aimed at redeploying employees who

are made redundant.

� Ensure that in all cases when a manager is considering a

situation which may result in the release of a member of

staff, HR will be contacted to guide the manager through the

process.

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� This policy applies to all cases of termination of employment

where the last day of service is on or after (1st September

2007)

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1. INTRODUCTION

ECFRS takes very seriously its responsibilities as a fair and caring employer.

Therefore in any reorganisation/redundancy situation it will follow the provisions of

this procedure to ensure that its employees are treated legally, ethically and

professionally.

2. SCOPE OF THE PROCEDURE

Redundancy is one of the legally admissible reasons for dismissing employees. The

Employment Rights Act 1996 sets out the definition of redundancy:

The dismissal is wholly or mainly attributable to:

(a) the fact that the employer has ceased or intends to cease, to carry on the

business for the purposes of which the employee was employed by him, or has

ceased or intends to cease to carry on that business in the place where the

employee was so employed, or

(b) the fact that the requirements of that business for employees to carry out work

of a particular kind or for employees 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.

In other words, redundancy occurs where:

• The establishment where the employee works closes down; or

• The need for workers carrying out a certain type of work has ceased or

reduces (the work itself may not have reduced – it is the need for

employees which is the test); or

• There is a change in the place of work of the employee (which is beyond

the scope of alternative transport/excess travel arrangements)

The legal definition of redundancy must be met, appropriate consultation and searches

for alternative employment carried out, etc, before redundancy payments can be

considered.

The procedure applies to:-

• All full-time or part-time permanent employees of ECFRS, including new

employees still in their probationary period.

• Employees on temporary/fixed-term contracts who have completed one year's

service with the Service at the date of implementation of the new structure.

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It does not apply to:-

• TUPE (Transfer of Undertakings) situations where all staff belonging to a

particular 'undertaking' are transferred from one employer to another.

3. AVOIDING A REDUNDANCY SITUATION

In order to avoid redundancy situations arising, managers should always consider use

of the following:-

• Natural wastage (employees retire or leave and are not replaced).

• Recruitment restrictions or freeze.

• Volunteers for redundancy or early retirement

• Reduction/elimination of overtime.

• Terminating temporary/consultancy workers' contracts

4. DECLARING A REDUNDANCY SITUATION

A lead manager responsible for the function concerned must be nominated at the

outset to coordinate and oversee the process of declaring/handling redundancies. This

will normally be the Department Head. He/she will be supported in this role by an

HR Business Partner as appropriate.

Any proposed changes to the number of people employed by the Service must be

approved by the Senior Management Board in the first instance. The written proposal

(see Support Information) will contain:-

• Full details of the proposed changes.

• The rationale for the proposed changes.

• Proposals for implementation.

• Cost implications (eg potential redundancy costs and method of calculation).

• Proposed implementation time-scale, including length of consultation period,

production of job profiles etc.

• Potential effects on employees (bearing in mind that practices such as focussing

on part-time employees may lead to indirect sex discrimination).

• Proposals for selection criteria to fill new/redesigned/fewer posts.

Where collective redundancies are proposed (ie 20 or more at one establishment), the

Department of Trade and Industry (DTI) must be notified in writing. This will be

done by the HR Manager. The timescales for notification to the DTI correspond with

those for statutory consultation with employee representatives as set out below.

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Any recruitment activity relating to posts of the type occupied by employees likely to

be affected by redundancy should normally be stopped at this stage. The HR

Business Partner will advise on how widely this should be applied. It is possible that

some appointments may be necessary to maintain services during the period of

change.

5. CONSULTATION WITH EMPLOYEE REPRESENTATIVES

The statutory consultation requirements relating to redundancy are that all affected

employees must be properly consulted through their recognised trade union

representatives, as appropriate. Consultation must begin as soon as redundancies are

contemplated and, in any event, at least 30 days before the first of the dismissals takes

effect where between 20 and 99 redundancies are proposed at one establishment

within a 90-day period, and at least 90 days before where more than 100 redundancies

are proposed. The requirement to consult extends to employees who are indirectly

affected as well as those directly affected by the proposed redundancies. (See Support

Information for a model 'Section 188' letter to be sent to Trades Unions involved.)

Even where a reorganisation does not result in 20 or more employees being made

redundant, it is still ECFRS practice for full and effective consultation to take place

with employees and their trade union representatives.

Even at the earliest stage when an initial declaration of a redundancy situation is being

put to the Senior Management Board for approval, some initial notification should be

given to employee representatives that a potential for a redundancy situation may

exist.

Once an initial declaration of redundancy has been approved by the Senior

Management Board, the Department Head in conjunction with HR must consult all

affected employees and the appropriate trades unions on the proposed changes.

Copies of the proposals, job profiles and person specifications should be given to all

those affected and adequate time should be allowed for consideration and comment.

Consultation must be meaningful and considered replies must be given to any

representations made.

It is not necessary for all of the consultation to be concluded before any individual

notices of redundancy are issued but there must have been sufficient meaningful

consultation in accordance with the statutory requirements before any such notices are

issued. Subject to this, individual periods of notice may run concurrently with the

statutory consultation periods outlined above.

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6. APPOINTMENT/SELECTION PROCESS FOR POSTS IN THE NEW

STRUCTURE

The proposals, job profiles and person specifications should be finalised by the

Department Head in conjunction with HR. Job profiles will need to be evaluated by

HR. Copies of the final proposals; job profiles and person specifications should be

made available by HR. The process for staffing the new structure should then

commence.

Slotting

Where a post in the new structure is fundamentally the same as the existing post, and

where there is just one employee for the job, then the employee should be slotted in

automatically, ie assimilated to the new post, without the need for an interview.

For slotting to take place, the post has to be fundamentally the same except for a

variation in working method or balance of skill or slight change in the level of

responsibility. The line manager in conjunction with the relevant HR Business

Partner will assess each case on its individual merits.

Ring-Fence

Where a different structure is created with different jobs, or where a reduction in the

number of jobs in the new structure means that there is more than one employee for

each job, there may be a ring-fencing exercise.

Ring-fencing means initially restricting applications for new posts to those staff

directly affected by the restructuring exercise that may have a match to the new posts.

It applies in all restructuring situations where there is not a direct one to one match to

a post, which is fundamentally the same as the old post and/or where the number of

employees eligible for posts in the new structure exceeds the number of posts

available.

Managers will notify all employees, directly affected by the change, of the selection

process for the posts in the new structure. It may be appropriate to ask for volunteers

for selection for redundancy before starting the selection process. Managers will

notify employees of the process for expressing an interest in redundancy.

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STRUCTURE (continued)

Managers must make it clear that, where an employee volunteers for redundancy, this

does not imply any automatic right or impose any obligation on the Service to

approve the employee’s request. Managers must first consider the needs of the

service and any redeployment options that are available.

Appointments to posts in the new structure will be made on the basis of an assessment

of skills and competencies through a rigorous selection process. Staff not appointed

through this process will be identified as being at risk of redundancy.

Where employees have already been slotted into jobs in the new structure, they will

not be able to register an interest in jobs within the ring-fence except where the post

presents a promotion opportunity.

Managers will ensure that the ring fence includes all substantive posts within the

department being re-structured, including those employees who may have been

seconded to an alternative post.

Where an employee fails to register an interest in any of the identified posts within the

new structure, the manager in conjunction with HR may identify and rank suitable

vacancies for the individual him/herself. This will be determined by undertaking a

comparison of the job profile and person specification and the comparative grading of

the old and new posts. As a general rule, the ring-fence should include all staff

affected by the reorganisation who have previously covered elements of the new job.

It will not include employees who have already been slotted into jobs in the new

structure except where the post represents a promotion opportunity. The manager in

conjunction with HR must notify individual employees, in writing, which posts they

may be considered for through the ring-fence exercise.

The criteria/competencies to be used in the selection process (which will include a

ring-fence interview) will be drawn from the job profile and person specification for

the new post. It will also take into account attendance record (which the individual

will be allowed to comment upon), and conduct over the previous two years as

evidenced from the personal record file (PRF).

The selection criteria must be shared with the trades unions and employees at this

stage, and comments invited.

Employees will be required to submit an application for posts in the new structure to

assist the process (see Support Information for model Selection Form).

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STRUCTURE (continued)

Where an employee is ring-fenced to more than one post, the employee's match to all

identified posts will be assessed through one selection process wherever possible.

Each tier of post will normally be dealt with separately, starting with the highest level.

Employees must demonstrate that they match the essential criteria that have been

agreed for the post and a record of the selection process must be kept.

Any employee appointed under the ring-fence procedure will be entitled to a four-

week trial period in the new post.

Where an employee is appointed to a lower graded post through this process, the

appointment will be regarded as a suitable alternative to redundancy where it is within

a range of two grades, and a trial period of 4 weeks will apply. The Service's normal

pay protection arrangements will apply.

If at the end of the ring-fencing selection process there are posts which have not been

filled and employees who have not been matched, a further ring-fence recruitment

exercise may be carried out, for example by widening the pool for particular types of

job, following the agreed process.

Employees who are dissatisfied with the application of the agreed selection criteria

have a right to make a formal representation in writing to their Department Head

stating the reasons for their dissatisfaction. This will be treated in accordance with

the ECFRS Grievance Procedure.

Once the slotting and ring-fence processes are complete, the old structure will be

deleted and the new structure implemented. Those employees who have been

appointed to the new structure should be issued with a new contract of employment, a

copy of which must be signed by the employee and returned to the HR Manager for

placing on the PRF.

7. PAY PROTECTION

Where an employee is matched to or selected for a lower graded post in the new

structure, through the ring-fence selection process, the Service's current protection

policy will apply. Currently this is full protection of basic salary for three years from

the effective date of the change. The protected salary will continue to include pay

awards but will not allow for any further incremental progression within the protected

grade. After 3 years the salary will revert to the maximum point of the salary range of

the new job with no further protection.

The Local Government Pension Scheme Regulations 1997 provide for the issue of a

Certificate of Protection of Pension Benefits where:

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a) An employee’s rate of pay is reduced, or

b) The rate at which it may be increased is restricted in such a way that it

is likely that the rate of his (or her) retirement pension will be

adversely affected.

Unless these occur either through the employees own circumstances, e.g. voluntary

change of job/hours/end of secondment/temporary acting up arrangement of cessation

of non-contractual payments.

On the basis of the above, where as a result of job evaluation or restructuring exercise,

or for any other similar unavoidable reason, a member of the Local Government

Pension Scheme (LGPS) has suffered a reduction or restriction to their pensionable

earnings, clearly through circumstances outside their control, a Certificate of

Protection of Pension Benefits should be issued when the reduction or restriction in

pay takes place i.e. when any pay protection ceases.

The Certificate of Protection of Pension Benefits seeks to base benefits in respect of

both past and future services at the higher rate of pensionable earnings, provided that

pensionable employment ceases within 10 years of the original reduction in

earnings/pay aware restriction. However if the member remains in the LGPS for a

period longer than 10 years the Certificate offers no real protection.

Further advice on this can be obtained from the HR Business Partners.

8. EMPLOYEES 'AT RISK' OF REDUNDANCY

Employees who have not acquired a post in the new structure will become 'at risk' and

subject to redeployment (see below). Employees will be issued with a formal letter of

dismissal by reason of redundancy, unless it has been necessary to issue this earlier

due to the time-scales involved (see Support Information for model Dismissal due to

Redundancy letter).

The notice period for redundancy dismissals will normally be the employee's

contractual or statutory notice period, which ever is the greater. However, a longer

period of notice may be given in certain circumstances such as:

• Where the decision is made to give all employees affected by the same

restructuring exercise the same period of notice. In this case, all employees could

receive notice based on the longest entitlement within the group.

Where the timing of the restructuring exercise is such that it allows for a longer period

of notice to be given.

Reasonable paid time off will be given to individuals to attend interviews for other

posts, attend appropriate training provided within or outside the organisation, etc.

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9. REDEPLOYMENT FOR EMPLOYEES NOT SECURING A POST IN THE

NEW STRUCTURE

Where it is regarded by management as in the best interests of ECFRS, employees

who have expressed a preference in writing for redundancy may be released. Such

employees may be allowed to leave ECFRS immediately on grounds of redundancy

with payment in lieu of their notice period. For all other eligible employees who are

under notice of dismissal due to redundancy, ECFRS will seek redeployment

opportunities and this assistance will last throughout the employee's notice period.

Assistance with finding redeployment opportunities will be offered by HR which will

keep a register showing all employees affected, what assistance is being offered (such

as sending vacancy bulletins to the employee), which posts they are applying for, and

the outcomes (see Support Information for model Job Matching form).

Where ECFRS identifies a suitable alternative employment opportunity for an

employee, any entitlement to redundancy pay will be forfeited if the individual

unreasonably refuses. 'Suitable alternative employment' normally involves a

reasonable match on skills, experience, pay, status, location, working environment

and hours of work, a start date within 4 weeks of the end of the old job, and allows the

employee a trial period of 4 weeks to assess suitability (see Support Information for

model Offer of Alternative Employment letter).

Any employee applying for posts on this basis will be advised to mark their

application clearly to indicate that they are 'at risk'. Providing that the employee

meets the essential criteria for the post, he/she will be asked to attend an interview

with the line manager and a representative of HR in advance of any other applicants

being seen. If the individual is deemed not to be suitable (even if appropriate training

were to be provided), it is particularly important in these circumstances that the

reasons for this are clear, and that a written record of these reasons is kept on file for

12 months. Any employee in this situation is entitled to request and be given honest

feedback.

If the individual is successful, he/she will be redeployed into the vacant post for a trial

period of 4 weeks to assess whether the job is a suitable and successful match. The

trial period can be longer to accommodate re-training if mutually agreed between the

manager, HR and the individual before the trial period begins. The manager is

responsible for monitoring the performance of the employee during the trial period

and conducting weekly review meetings to discuss progress.

ECFRS is only obliged to make one offer of suitable alternative employment to any

employee. If the employee accepts the offer and the trial period to assess suitability is

successful, he/she will be treated as not having been dismissed and the question of a

redundancy payment will not arise. If the employee refuses a reasonable offer, or

unreasonably insists that any trial period demonstrates lack of suitability, no further

offers will be made and the employee will lose their right to redundancy pay and will

leave ECFRS at the end of their notice period.

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9. REDEPLOYMENT FOR EMPLOYEES NOT SECURING A POST IN THE

NEW STRUCTURE (continued)

If the trial period in a post which has been offered to the employee as a suitable

alternative employment proves unsuccessful, the employee will be placed back on the

redeployment register by HR and further opportunities will be actively sought for the

remainder of the unexpired notice period.

Any 'at risk' employee who is being helped to find suitable alternative employment by

HR may continue to apply for other posts which HR does not regard as suitable

alternatives. If successful in obtaining such a post, he/she will lose any entitlement to

a redundancy payment unless deciding against the job after a trial period.

Normal pay protection provisions (see Section 7 above) will apply where the

alternative employment is of a lower grade but is considered by ECFRS to be an offer

of suitable alternative employment. However, where the employee applies for, and is

appointed to, a lower graded post which has not been identified by HR as suitable

alternative employment, there will be no protection of salary.

Where a temporary position is offered and accepted during an employee's notice

period the notice is considered to have been withdrawn and will start again at the end

of the temporary contract.

10. RIGHT OF APPEAL

An employee has the right to appeal against a redundancy dismissal. The appeal may

be on the basis that the employee’s role should not be made redundant and/or the

decision to select for redundancy. The appeal will be heard by a senior Manager who

has not been involved in the original decision to dismiss.

11. CALCULATION AND AUTHORISATION OF REDUNDANCY PAYMENTS

A brief outline of Statutory Redundancy Payments, ECFRS Discretionary

Compensation payments and entitlements to early release of pension benefits is

attached (see Support Information for 'Details of Redundancy Benefits').

No agreement may be reached at any stage of the above procedure to make a

Redundancy payment to any individual without the written authorisation of the SMT

Director.

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1. EXAMPLE OF DECLARATION OF A REDUNDANCY SITUATION FORM

Location/Team Affected

Submitted to Senior Management Team on: (date)

Approved by Senior Management Team on: (date)

State details of the proposed changes: .................................................................................................................................... .................................................................................................................................... ....................................................................................................................................

What is the rationale for the proposed changes? .................................................................................................................................... .................................................................................................................................... ....................................................................................................................................

How is it proposed to implement the changes? .................................................................................................................................... .................................................................................................................................... ....................................................................................................................................

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1. EXAMPLE OF DECLARATION OF A REDUNDANCY SITUATION FORM

(continued)

What are the cost implications? .................................................................................................................................... .................................................................................................................................... ....................................................................................................................................

What is the estimated timescale for implementing the changes? .................................................................................................................................... .................................................................................................................................... ....................................................................................................................................

What are the potential effects on the employees concerned? .................................................................................................................................... .................................................................................................................................... ....................................................................................................................................

What selection criteria are proposed for the filling of any new or redesigned posts? .................................................................................................................................... .................................................................................................................................... ....................................................................................................................................

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2. EXAMPLE OF CONSULTATION WITH THE TRADES UNION – MODEL

S188 LETTER

Dear:

Re: [name of establishment or Service area]

I am writing to give you formal notice under Section 188 of the Trade Union and

Labour Relations [Consolidation] Act 1992 that the decision to review/close

[establishment or work area] may result in a redundancy situation.

I am, therefore, providing the following information as required by statute. (Details to

be filled in under each of the following headings.)

1. Reason for the potential redundancy situation.

2. Number and description of employees (posts) potentially at risk of

redundancy.

3. Total number and description of employees currently affected.

4. Proposed method of selection of employees to be made redundant.

5. Proposed method of carrying out the redundancies including any agreed

procedures and the intended date the redundancies will take effect.

6. Strategies to be adopted to mitigate the effects of the situation.

7. The method of calculating the redundancy payments to be made to the

employees who may be dismissed.

I hope that this information will provide the basis for continued discussion between

our representatives. Please contact [name] if you have any queries on the information

contained in this letter.

Yours sincerely

HR Manager

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3. EXAMPLE OF PREFERENCE FORM

Confidential Personal Preferences

In order to assist managers when making decisions affecting employees and to meet employee wishes as far as possible, it would be helpful at this stage to have an early indication of individual preferences. Views expressed now will in no way be binding on employees and will not commit them or the Service to future action. However, receipt of views will allow us to plan more effectively. Will you please, therefore, complete the following? If you wish to add any comments to clarify or expand, please do so.

1. Would you wish to be considered for redundancy?

Yes No

2.

Of the ring-fenced posts available to you please state those which you wish to be considered for in order of preference:-

3. Type of work you wish to be considered for.

4. Previous work experience and particular skills and competencies.

5.

Is there any training which you consider would assist your future career choices?

Thank you for your assistance in completing this. The content will be kept confidential and only used to assist forward planning.

Signed: Date:

Designation:

Please return to: By:

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4. EXAMPLE OF REORGANISATION PROCEDURE – SELECTION FORM

PERSONAL INFORMATION (please complete in typescript or black ink)

Name:

Address:

CURRENT POST

Location/ Department:

Grade:

Post Title: Salary:

Hours Per Week:

Please give brief details of current post: .................................................................................................................................................................. .................................................................................................................................................................. ..................................................................................................................................................................

RELEVANT PREVIOUS EMPLOYMENT/EXPERIENCE (most recent first)

Employer:

Post Title:

Dates:

Employer:

Post Title:

Dates:

EDUCATIONAL/PROFESSIONAL/VOCATIONAL QUALIFICATIONS AND COMPETENCIES (Please include membership of professional bodies)

Qualification/ Professional Body:

Dates:

Contact Telephone No’s: Work: Home:

Signed: Date:

Personal Data may be processed in line with the Data Protection Act 1998.

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(continued)

POST(S) APPLIED FOR

Please state which post(s) you are applying for:

1. Location/ Service Area:

Post Title: Grade:


Post Title: Grade:


Post Title: Grade:


Post Title: Grade:


Post Title: Grade:


Post Title: Grade:

For EACH post, please complete a STATEMENT IN SUPPORT OF APPLICATION (see next page):

For EACH post, please send a copy of this form together with the appropriate STATEMENT IN SUPPORT OF APPLICATION:

To: By:

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(continued)

STATEMENT IN SUPPORT OF APPLICATION

Post Title: Grade:

Please indicate below why you believe you meet the requirements of the job profile, person specification and competencies. .................................................................................................................................................................. .................................................................................................................................................................. .................................................................................................................................................................. .................................................................................................................................................................. .................................................................................................................................................................. .................................................................................................................................................................. .................................................................................................................................................................. .................................................................................................................................................................. .................................................................................................................................................................. .................................................................................................................................................................. .................................................................................................................................................................. .................................................................................................................................................................. .................................................................................................................................................................. .................................................................................................................................................................. .................................................................................................................................................................. .................................................................................................................................................................. .................................................................................................................................................................. .................................................................................................................................................................. .................................................................................................................................................................. .................................................................................................................................................................. .................................................................................................................................................................. ..................................................................................................................................................................

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5. EXAMPLE OF DISMISSAL DUE TO REDUNDANCY LETTER

PERSONAL AND CONFIDENTIAL

Dear

Dismissal due to Redundancy

I am writing to advise you that, regretfully, you will be dismissed by reason of

redundancy from your post with Essex County Fire and Rescue Service (ECFRS) on

[date].

Either – This letter gives you [number] weeks notice with effect from [date].

Or – It has not been possible to give you the [number] weeks notice to which you are

entitled. This letter therefore gives you [number] weeks notice with effect from [date]

and you will receive [number] weeks/days pay in lieu of notice.

You are, I know, aware of the [restructuring proposals etc] that have given rise to this

redundancy situation as this has been discussed with you in recent weeks. It has also

been the subject of consultation with the relevant trade unions.

Provided that you have not obtained any alternative employment and there has been

no material change in your employment prospects on the date your employment with

ECFRS terminates, you will be entitled to a severance payment. An estimate of

benefits is enclosed/will follow shortly/was sent to you previously. I would stress that

these are estimated figures and are subject to final verification when payments are

made.

If there have been any changes in your employment position/prospects during this

notice period by the date your employment with ECFRS terminates, you are required

to notify me of this. Failure to do so may affect your entitlement to the severance

payment.

Should you take up an appointment with another Fire and Rescue Service, and in the

case of non-uniformed staff, with any other body specified in the Redundancy

Payments (Local Government) Modification Order 1983, within 4 weeks of the date

of redundancy you will lose your right to severance payments. This only applies

where the offer of a job is made before the end of your contract of employment with

ECFRS. If you are made redundant on a Friday, Saturday or Sunday the 4 weeks will

begin on the following Monday.

During your notice period if a vacancy arises that is considered to be suitable

alternative employment it will be necessary to withdraw this notice of redundancy.

Continued …

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5. EXAMPLE OF DISMISSAL DUE TO REDUNDANCY LETTER (continued)

You have a right to reasonable paid time off during your notice period to attend

interviews for other posts.

If you wish to resign during the notice period please discuss this with the HR

Manager as it may affect your estimated severance payment.

Similarly if you wish to discuss any other aspect of this letter please do not hesitate to

contact the HR Manager.

Should you feel that your selection for redundancy or the way the procedure has been

operated is unfair, you have the right to appeal against this dismissal. Any appeal

should be made in writing to the HR Manager within 10 days of the date of this letter.

May I take this opportunity to express my appreciation for your service and wish you

well for the future.

Yours sincerely

HR Manager

Optional Paragraphs:

I note that you currently have a (season ticket/car loan/bicycle loan) which will need

to be repaid in full at the end of your employment. Any outstanding balance will,

therefore, be deducted from your final salary payment. Should this present any

difficulties please contact me.

You are required to return your ID Card/any Service equipment/lease car at the end of

your employment. You should make arrangements with your line manager to return

these (adapt as necessary).

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6. EXAMPLE OF JOB MATCHING FORM

Name

Last day of

Service

Dates Job Vacancy

Information Sent Positions Applied

For Outcome

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7. EXAMPLE OF ALTERNATIVE EMPLOYMENT MODEL LETTER

Dear [Salutation]

Review of [Location/Service Area etc] – Alternative Employment.

I refer to your recent meeting with a member of the HR team at which the alternative

employment procedure was explained to you.

As you are aware every effort is being made to identify alternative employment

opportunities for staff affected by the review to avoid the need to make staff

redundant.

The following post has been identified as being suitable alternative employment for

you.

Post:

Grade:

Location:

Hours:

I enclose a copy of the job profile for the post for your information. If you would like

further details about the position please contact [name] who will be happy to talk

about the role.

Please be aware that this is considered to be an offer of suitable alternative

employment and if you choose not to accept the employment you will lose your right

to a redundancy payment.

You are entitled to a trial period of 4 weeks in this post. If you do not find the work

suitable during this period and I agree with your/your manager's representations to

that effect you will be eligible for alternative employment opportunities during the

remainder of your notice period. You will not lose your right to a redundancy

payment in this situation.

If you wish to accept this offer of alternative employment please complete the

attached page at the end of this letter and return it to [name and address] by [date].

[Optional paragraph if identified post is at a lower grade]

*The ECFRS policy on pay protection will apply. Currently, this is full protection of

basic salary for three years from the effective date of the change. The protected salary

will continue to include pay awards but will not allow for any further incremental

progression within the protected grade. After three years the salary will revert to the

maximum point of the new grade with no further protection.

If you do not intend to accept this position you will need to let us know, in writing,

why you do not consider the position to be suitable alternative employment no later

than [date].

Yours sincerely

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7. EXAMPLE OF ALTERNATIVE EMPLOYMENT MODEL LETTER

(continued)

I ……………………………………………[name]

Accept/Do not accept* the post of ………………………………..[post title]

as suitable alternative employment.

*If you do not consider the offer to be suitable alternative employment you must give the

reason why you do not consider the offer to be suitable.

Signed: ...................................................................... Dated: ..............................................

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8. DETAILS OF REDUNDANCY BENEFITS

STATUTORY REDUNDANCY PAYMENTS

Subject to the qualifying service criteria of two years continuous service, statutory

redundancy payments are calculated on a formula defined in the Employment Rights

Act 1996 and based on age and length of service as set out below:

Table 1: Statutory Redundancy Payments

Age Weeks pay per years of service in this age range

Under 22 ½ week

22 to under 41 1 week

41 and over 1 ½ weeks

The maximum years of service (regardless of the employee’s length of continuous

service) that can be counted are 20 years and maximum weeks payable is 30 weeks.

There is a statutory maximum of a week’s pay which is used to calculate payments

due. Appendix A provides a ready reckoner for calculating the number of weeks pay

due.

ECFRS DISCRETIONARY COMPENSATION PAYMENT

However, it is ECFRS policy to award a discretionary compensation payment based

on the above formula and, subject to the qualifying condition of two years service, pay

up to a maximum of 45 weeks pay which is calculated using a multiplier of 1½ times

the statutory entitlement, as shown in the above table.

This therefore gives the discretionary compensation payment formula as follows:

Table 2: Discretionary Compensation Payments

Age Weeks pay per years of service in this age range

Under 22 ¾ week

22 to under 41 1 ½ week

41 and over 2 ¼ weeks

In addition, it is the ECFRS’ policy to calculate discretionary compensation payments

based on an employee’s contractual weekly pay (as opposed to the statutory

maximum).

The discretionary compensation ready reckoner is at Appendix B. This discretionary

compensation payment subsumes and incorporates the redundancy payment due.

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REDUNDANCY AND AGE OF EMPLOYEE

REDUNDANCY – AGED LESS THAN 50 YEARS

Employees meeting the various qualifying conditions receive a discretionary

compensation payment (enhanced from the statutory formula and therefore

subsuming any right to redundancy pay) in accordance with the table above to

a maximum of 45 weeks pay.

Under the age of 50, there is no entitlement to the early release of pension benefits.

REDUNDANCY – AGED OVER 50 YEARS – LGPS MEMBERS

Under ECFRS policy employees meeting the various qualifying conditions are

entitled to a discretionary compensation payment (incorporating the statutory

redundancy payment) to a maximum of 45 weeks pay.

In addition, for employees with over 3 months ‘total membership in the Local

Government Pension Scheme (LGPS), there is an entitlement to early release of

pension benefits. These benefits are those accrued by the employee to the date of

dismissal.

If an employee is aged under 65, there will be a financial strain on the pension fund

due to the pension being paid early, which must be paid for by ECFRS.

REDUNDANCY AT ANY AGE – LGPS MEMBERS WITH LESS THAN 3

MONTHS TOTAL MEMBERSHIP

Where an employee’s total pension membership is less than 3 months there is no

entitlement to release of pension benefits on the grounds of redundancy.

Employees have the same choices regarding their LGPS pension rights as voluntary

leavers i.e.:

to request a refund of their contributions less tax and NI deductions

OR

arrange a transfer of their pension rights to another employer in the LGPS, or to

another pension scheme,

OR

to elect in writing to defer any decision for the time being

In the absence of any of the above actions being taken, a compulsory refund of

the member’s LGPS contributions will be made to them after the expiry of 12 months

from the termination date.

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To qualify for a redundancy payment, employees need to have completed at least 2

years continuous service at their termination date (the date the notice expires). The

continuous service will be with ECFRS and may include previous service with one or

more other body listed in The Redundancy Payments (Continuity of Employment in

Local Government) (Modification) Order 1999. Continuity of service with these

bodies will be broken for redundancy purposes if there is a gap in employment of

more than one national insurance week, i.e. Sunday to Saturday. If, however, an

employee is offered another local authority/Modification order Body job before their

service is terminated and they are due to start their new job within 4 weeks, their

service is deemed to be continuous and no redundancy payment can be made.

EMPLOYEES WITH TWO OR MORE JOBS WITH ECFRS

Where an employee has two or more separate jobs with ECFRS and they are made

redundant from one of these jobs, continuous service (and the redundancy payment) is

calculated based on the redundancy post only – as the two employment arrangements

should be treated as independent of each other for redundancy purposes. It is

necessary to check the pension position of the job being made redundancy with the

Pension Services.

CALCULATING WEEKLY PAY

The weekly pay (for those who work regular hours) to be taken into account when

calculating a discretionary compensation payment is at the ‘termination date’ i.e. the

last day of service. For those who work varying hours an average weeks pay must be

calculated over a 12 week period ending on the termination date.

For employees paid for less than a full year i.e. paid for less than 52.14 weeks per

annum – a week’s pay should be based upon the total paid weeks, rather than dividing

their annual salary over the full year (52.14 weeks).

An employee who would normally be entitled to a redundancy payment may lose this

entitlement where:

• The employee commits an act of gross misconduct and is dismissed (i.e. an

offence of a serious nature as defined in the disciplinary procedure)

• The employee leaves early before the notice has expired without the

employer’s agreement. Employers must be prepared to justify the reason for

their refusal as the employee will be able to appeal to an employment tribunal

who will examine both the employer’s and the employee’s reasons. The

tribunal’s decision on what to pay the employee will be based on what is ‘just’

and ‘equitable’.

If the employee is given notice of redundancy and before the dismissal takes effect,

the employee receives an offer of employment from another body specified in

Schedule 2 of the Modification Order 1999, the individual may lose entitlement to a

redundancy payment. This only applies where the relevant body makes the offer of a

new job before the end of the old contract and the employment starts within four

weeks of the date of redundancy. (If the contract ends on a Friday, Saturday or

Sunday, the 4 weeks is counted from the Monday of the next week.)

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However, employees under notice of dismissal may ask their employer to allow them

to leave their job early before the expiry of their notice period. Or, they may issue the

employer with a written counter notice. This will not invalidate the right to a

redundancy payment except where the employer successfully contests the application.

The employee will still be deemed to have been dismissed by the employer, but on the

date of expiry of the employee’s notice and not of the original notice from the

employer. It is essential that further advice on this is sought for the HR Service.

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