Education law conferenceMarch 2017, LondonRestructuring top tips

Restructuring: Top Tips

Tips on successfully managing a restructuring process

1st March, London

Tom Wallace, HR Consultant

Join the conversation #BJ_EDC

Context

Our joint School Leadership Survey results confirm that 95%of respondents see managing a reduced or stagnant budget

as a priority over the next 12 months.

“Education in schools has operated in a relatively benignfinancial climate for a long time. But a new generationof school leaders is going to have to emerge to cut theircloth to drive efficiencies. This is one of the biggestchallenges facing the school system: schools willincreasingly have to do more with the same money.”

Lord Nash: Schools Minister

Session purpose

To help you to ensure that any restructure is done in a waythat:

• Is legally compliant and minimises the risk of a legalchallenge

• Considers staff morale and minimises the disruption toteaching and learning

• Complies with good practice whilst minimising prolongeduncertainty

What we will cover

• Ways to avoid/minimise redundancies

• Top tips and pitfalls to avoid

• Questions – ask throughout and we’ll also have time at the end

Avoiding/minimising redundancies

• Ending fixed term contracts

• Plan ahead and carefully consider whether vacancies need filling

• Reduce non staff expenditure as far as possible

• Generate additional income

• Redeploy to other vacant roles – MAT wide if possible

• Consider requests for reduced hours, early retirement and

volunteers

Tips if restructure is needed1. Consider pay protection when planning costs: 3 years for Teachers

and typically 1/2 years for support staff if redeployed to otherroles on lower pay

2. LGPS members who are 55 or over must access their pension ifmade redundant and the employer must meet the cost of pensionstrain – get costs in advance

3. Check your funding agreement as the EFA may fund redundancies(in some but not all cases)

4. Check you policy to see if you offer enhanced payments

Planning• Do not underestimate the importance of planning

• Start before you are facing a deficit and use any surplus wisely

• Staffing levels and structure should be determined by:• Curriculum plan• Student numbers and demographics• Class sizes• Income levels• SLT structure and distributed leadership

• Consider redundancy policy

ConsiderationsSecondary schools are critically evaluating:

• Breadth of curriculum and whether sustainable

• Class sizes and whether small KS5 classes can run

• Free periods in excess of PPA and discontinuing instead or before

of redundancies

• Seeing through those students already doing GCSEs can be

expensive so plan ahead

• Size of SLT and role/impact of middle “leaders”

• SLT teaching allocation

Timeframe

• 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 notice datesand ensure steps in policy, including dismissal meetings, happen intime

• Don’t forget half term – exclude this for the purpose of the process

• Contingency for slippage of dates

20 or more redundancies

• HR1 form – must be completed if 20 or more staff are at risk – ifyou miss their notice periods you cannot make any redundancies

• Consultation periods are longer if 20 or more redundancies withina 90 day period

The Business Case• Central to the overall process – corresponds with your policy

• Summarises the case for the restructure; who and how staff are

affected

• The enabling process should be included; along with a timeline

• Include current and propose structure charts and financial

implications, final document approved by governing body

• Send to trade unions

• Staff also receive a copy – including absent staff

• This forms the basis of consultation

Top Tip

Staff want to know how they are potentially affected and whattheir options are – ensure this is as clear as possible to minimise

uncertainty and have meaningful consultation

Consultation

• Timing – statutory or policy

• One-to-one meetings (notes taken) with employee and rep (ifapplicable)

• Have redundancy figures ready and decide in advance about anyenhancements for volunteers

• Staff can raise very genuine points/proposals during consultationwhich may alter the new structure – that is the point ofconsultation

Pools

• The business case details who is deemed to be in each pool andwhy

• Give thought to this and don’t rely on job titles

• Seek advice, don’t have favourites and don’t use as a way ofdealing with poor performance

Selection Criteria

If there is no set selection criteria within your policy, consult on theproposed method and criteria by including in the business case.

How will you select for redundancy?

• Interview• Scoring/skills matrix

Selection Criteria – Scoring matrix (SAMPLE)

Example scoring criteria:Total score available = 100 points

Teachers• Student progress (40 points)• Quality of teaching (30 points)• Behaviour managements (10 points)• Subject and key stage experience (10 points)• Contribution to whole school life (10 points)

Avoid being subjective and inconsistent

Top tips

Best practice is to have a panel of 3 scorers or interviews

If using attendance must exclude maternity and disabilityrelated absences.

Voluntary Redundancy

• During any restructure Voluntary Redundancies (VR) should beoffered as this will reduce the number of compulsory redundancies

• Offer to affected staff or any?

• Must state they will be accepted on an individual and case by casebasis ensuring the needs of the school and pupils are met

• Can incentivise by paying in lieu of notice

Top tips

Ask for VR ‘declaration of interest forms’ to be completed bythe end of the consultation period

All requests do not have to be agreed but seek advice

Redundancy Payments

• Statutory or enhanced – check policy and previous precedents

• Ensure calculations have been run for all at risk staff in advance

• Support Staff in the LGPS who are over 55 and under 60 areentitled to have their pension ‘topped’ up – big additional cost

• Ensure continuous service is correct and ask whether previouslymade redundant (this breaks service)

Support for displaced staff

• Suitable alternative roles within other Academies in the MAT

• Paid time off for interviews

• Support with interview tips/C.V

• Time to access support from trade union

• Be aware some staff may not have applied for a job in a number ofyears

The Modification Order

• Staff either receive redundancy pay and lose continuous service orkeep continuous service and pay back redundancy pay

• If staff are made redundant with effect from 31st August theycannot start a new job in a school (or body covered by theModification Order) on 1st September, unless they pay theirredundancy pay back

Any questions?

Find out more

www.brownejacobson.com/education

Talk to us

Tom Wallace | 020 7871 8513 | tom.wallace@brownejacobson.com

Please note

All information correct at time of production.

The information and opinions expressed within this document are no substitute for fulllegal advice. It is for guidance only and illustrates the law as at the published date. If indoubt, please telephone us on 0370 270 6000.

© Browne Jacobson LLP 2017 – The information contained within this document is andshall remain the property of Browne Jacobson. This document may not be reproducedwithout the prior consent of Browne Jacobson.