Step 4 - Concluding the Change Period and Next Steps
Confirmation of Redundancy and PILON (Pay in Lieu of Notice)
3.4.1 On conclusion of the change period, the lead manager will confirm the following in writing to any employees that are to be made redundant as part of the change process:
- confirmation that the employee’s post is redundant (if this has not already confirmed)
- details of any entitlement to redundancy pay
- details of any entitlement to pay in lieu of notice (PILON) and any other monies owed, such as holiday pay
- details of the right of appeal.
3.4.2 Please refer to the individual’s contract of employment for the applicable notice period.
3.4.3 No dismissal will take effect until the day following the end of the change period (either day 61 if 1-2 employees affected, or day 91 if 3 or more employees are affected) unless otherwise agreed. The employee’s contract may end prior to this, for example, if the employee wishes to leave the University’s employment early.
3.4.4 For clarity, employment will terminate on the date specified in the notice of termination unless otherwise agreed (see above).
3.4.5 The University will offer all staff under formal notice of redundancy, early release from the University’s employment with basic pay in lieu of notice (PILON) to enable them to maximise their ability to seek alternative employment. Such payments will be subject to tax and NI.
3.4.6 In certain circumstances, it may be agreed that an individual will work her/his notice period following the expiry of the change period.
Redundancy Pay
3.4.7 Employees who are made redundant following two or more years' continuous service with the University (except for Assistant Staff on contracts with a continuous service date prior to 1 October 2003, see below) as at the date of dismissal will be eligible for a redundancy payment based on statutory provisions (Section 162 of the Employment Rights Act 1996). A statutory redundancy payments ready reckoner is available for individuals to access.
3.4.8 Assistant Staff on contracts with a continuous service date prior to 1 October 2003 are entitled to an enhanced redundancy payment (Employment Protection: Code of Practice and Procedure, section 7.1). The sum payable shall be twice the statutory redundancy payment, but based on the assistant's actual weekly rate of pay and subject to a maximum of one year's salary.
3.4.9 The University will provide a redundancy package estimate to individuals who are at risk of redundancy.
3.4.10 An employee whose role is redundant will not be entitled to a redundancy payment in circumstances where the employee:
- is dismissed for reasons of misconduct, with or without notice preceding their proposed last day of service.
- starts suitable alternative employment with the University, either as part of the restructure or through redeployment, without a break or with a break not exceeding four weeks and completes a trial period satisfactorily where relevant (the offer of alternative employment must be made before the employee's employment under the previous contract ends).
- unreasonably refuses an offer of suitable alternative employment with the University.
- leaves her/his employment before the expiry of contractual notice, unless this has been mutually agreed.
Implementation of Change
3.4.11 Information and advice on implementing change is provided in the Guidance document which accompanies this Policy. The nature of implementation will depend upon the type of the change being implemented but may include: re-launching activities and communications, introducing new services, arranging handover activities, arranging team building or training on new processes, making arrangements with payroll for redundancy and PILON payments to be made to leavers etc. Further support can be obtained from the relevant HR School team.
Review
3.4.12 It is good practice to undertake a post-change review in order to:
- evaluate whether the original objectives have been met,
- identify areas where further work or support is required e.g. whether staff in the new structure have the skills and support required to undertake their roles,
- review staff wellbeing and identify any actions required,
- identify any lessons learnt for the future,
- celebrate successes.
3.4.13 The scope and scale of the review will depend upon the nature and scale of the change exercise, and the time and resources dedicated to a review will be consistent with the original scope and the desired output. It is also advisable to fully involve staff in problem solving and decision making when evaluating or reviewing a change process; this may involve for example setting up working groups to work on specific problem areas.
On-going Support for Employees
3.4.14 It is helpful to be mindful of the potential impact of change on employees, particularly if as a result of change they are performing new roles, have been redeployed to new areas, are developing new skills or are working with new team members, systems or processes. Key activities and behaviours for managers supporting staff through change are provided in the Guidance document and focus on clear and regular communication, empathy and transformational leadership.
3.4.15 If some staff have left, or will be leaving the University, or have been redeployed as part of the change, it is important to ensure that remaining staff are fully involved in implementing the changes in order to rebuild their morale and levels of engagement, which will help to drive the changes forward in a productive way. There is a variety of support available for staff listed below.
3.4.16 As in all stages of managing change it is important to continue to communicate with all staff after the change has been implemented and to keep formal and informal channels of communication open.