Redundancy Policy

POLICY STATEMENT

It is the policy of Bournemouth Council for Voluntary Service (BCVS), by careful and forward planning, to ensure as far as possible, security of employment for its employees, backed up by appropriate staff development.

However, it is recognised that the nature of the voluntary sector funding strategies is such that posts are frequently funded on a temporary basis, funding may not be renewed, or unexpected economic and political changes can have an adverse effect on funding levels.

BCVS will seek to minimise the effect of redundancies through the provision of measure described in this policy.

Where compulsory redundancy is inevitable, BCVS will handle redundancy in the most fair, consistent and sympathetic manner possible.

WHAT IS REDUNDANCY?

Redundancy occurs when:

The employer has ceased, or intends to cease, to carry on the business for the purposes for which the employee was employed
The employer has ceased, or intends to cease, to carry on the business in the place where the employee was employed

or
The requirement 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 the employee was employed, has ceased or diminished or is expected to cease or diminish.
There is some other substantial reason

VOLUNTARY REDUNDANCY

In some circumstances where a redundancy situation exists, BCVS may invite employees to apply for redundancy. Candidates for voluntary redundancy are treated in the same way as people chosen for redundancy by BCVS.

CONSULTATION

BCVS shall aim to warn staff as soon as possible that there is an impending situation that may result in a redundancy.

BCVS will consult employees who may be made redundant, either individually or jointly, as soon as possible. The consultation will be to:

Give the reasons for the redundancy proposals
Discuss how the effects of redundancy can be minimised
Explain how any necessary redundancy will be handled
Explain how employees will be selected for redundancy
Give information about how the dismissals will be carried out and the period over which the dismissals will occur

Where 20 or more employees may be made redundant within a 90 day period BCVS will, in addition, consult the elected representative of the employees.

BCVS will aim to keep all staff informed about general events, but not personal and confidential information.

EARLY RETIREMENT

in some circumstances, BCVS may invite employees to take early retirement. Employees who do so may waive their right to claim unfair dismissal or redundancy pay.

SELECTION FOR REDUNDANCY

BCVS will select staff for redundancy in a fair and reasonable manner.

Members of staff or groups of staff may be associated with particular projects and associated funding sources. This is likely to influence selection for redundancy.

Where circumstances permit, and with the use of discretion, the following principles will be taken into account:

Performance and experience
Disciplinary record
Health & sickness record
Skills and training
Length of service

MEASURES FOR MINIMISING OR AVOIDING COMPULSORY REDUNDANCY

BCVS shall endeavour to seek out all possible means for minimising or avoiding compulsory redundancy, such as:

Natural wastage
Restrictions on recruitment, where this is appropriate
Redeployment to other parts of BCVS where the skills, experience, conduct and performance profile meets the person specification and requirement for the alternative work
Reducing the hours of work by the operation of short-time working

BCVS will offer suitable alternative work if this is available. If suitable work is offered and the employee accepts it, there is no redundancy, if the new contract starts as soon as the old contract ends, or within four weeks of the termination. If suitable work is offered and the employee unreasonably refuses it, he/she loses the right to redundancy pay.

If the alternative employment differs in any significant way from the previous contract the employee has the right to a trial period of four weeks. In the event of unsatisfactory performance during this time the employee will be made redundant. Where there are insufficient alternative jobs available for the number of employees being made redundant, all these employees will be invited to apply for the alternative work, provided that they all have the relevant skills. Selection will be made by interview.

TIME OFF TO LOOK FOR NEW WORK OR TRAINING

Any BCVS member with two years service or more who is under notice of redundancy will be given a reasonable amount of paid time off to look for another job or to arrange re-training, or receive redundancy counselling before expiry of the period of the period of notice. The amount of time is at the discretion of the line manager.

REDUNDANCY PAYMENTS

Employees are eligible for statutory redundancy pay if they

Have been continuously employed by BCVS for more than two years
Will be dismissed for reasons of redundancy
Have two years service at the age of eighteen years or over
Are under retirement age (sixty five years)

AMOUNTS OF PAYMENTS

The amount of an employee’s lump sum redundancy payment depends on how long he/she has been continously employed by BCVS; how the years of service relate to particular age bands; and on weekly pay. It is calculated by multiplying a week’s pay, ½ week’s pay or 1 ½ times a week’s pay (depending on age in each year of service) by the number of complete years of service as follows:

For each complete year of employment in which the employee was not below the age of 41 but was below the age of 65 – 1 ½ week’s pay

For each complete year of employment in which the employee was not below the age of 22 but was below the age of 41 – 1 week’s pay

For each complete year of employment in which the employee was not below the age of 18 but was below the age of 22 – half a week’s pay.

WHAT ARE THE PAYMENTS

Statutory redundancy payments shall be calculated as that laid down in legislation. The amount of redundancy pay depends on the employee’s length of service and weekly pay.

Employees who are within one year of retiring may be entitled to a lower rate of redundancy payment. Employees whose service ends on or after their 65th birthday are not legally entitled to redundancy payment.

BCVS does not provide for redundancy pay over and above the statutory entitlement. This procedure will be re-issued as statutory provision changes.

WHAT IS A WEEK’S PAY

A week’s pay is that which the employee is entitled to under his/her terms of the contract at the ‘calculation date’, being the date on which the employer gives the employee the minimum notice to which he/she is legally entitled. A statutory redundancy payment is not taxable. The redundancy payment will be subject to the statutory limit applicable at the time.

HOW DOES THE EMPLOYEE CLAIM PAYMENT?

There is no need for the employee to claim, as the payment will be paid automatically. Employees under notice of redundancy will be given a written statement showing the date of termination and how the amount of redundancy payment was calculated.

NOTICE

Any member of staff affected by redundancy will be given written notice of redundancy as follows:

One week’s notice in the first six months of service
One month after six months and up to four years’ service
One week for each year of continuous employment after four years’ service with a maximum of twelve weeks’ entitlement

PRECAUTIONARY NOTICE OF REDUNDANCY

Precautionary notice of redundancy may be given to an employee where BCVS is approaching the end of a funding cycle, without knowing whether a grant or contract for the work for which they are employed will be renewed.

If a grant/contract is received for the work for which they are employed, then notice of redundancy will be withdrawn. This amounts to an offer of a job with new funding as suitable alternative employment.

CONTINUOUS EMPLOYMENT

An employee’s period of continuous employment is reckoned in complete calendar years, starting with the first day of work and ending with the ‘relevant date’. The ‘relevant date’ is defined as the date on which the notice given to the employee expires, that is normally the date on which the job or employment contract ends.

Bournemouth CVS Redundancy Policy complies with the minimum provisions of the Employment Rights Act 1996 and the Employment Relations Act 1999 and takes account of the ACAS Code of Practice.

Date:

Signed:

Chair of BCVS Board Chief Executive BCVS

Policy agreed: January 2004.

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