organisational change policy - lewisham · in the event of organisational change, the restructuring...

Policies Procedures &

Guidelines

Policy on Organisational Change Incorporating Redeployment,

Redundancy and Protection of Pay

Version: 1

Ratified by: Lewisham Joint Staff Partnership Committee

Date ratified: September 2006

Name of originator/author: HR Department

Date issued: September 2006

Review date: September 2011

Target audience: All staff

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Version Control

Reference LEW/HR/ Policy on Organisational Change Incorporating Redeployment, Redundancy and Protection of Pay LEW/HR/020

Date Approved September 2006

Approving Body JSPC

Implementation Date September 2006

Version 2

Supersedes Version 1

Consultation Presented to JSPC

Supporting Procedure

Review Date September 2011

Lead Executive Human Resources Department

Author/Lead Manager HR Manager

Further Guidance ACAS, CIPD, DOH and NHS Employers Implementation

Target audience

All PCT Staff

Implementation plan in place

Yes

Tools for dissemination

E-mail & Intranet

Date of dissemination

September 2006

Monitoring

Monitoring method

Audit

Frequency

Annual

Responsibility

HR Department

Reporting

HR Department

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Equalities Impact Assessment Screening Grid Note: See equalities impact assessment guidance notes on PCT website at www.lewishampct.nhs.uk/eia before completion.

Equality Group Assessment of Impact Race

This policy does not affect any one group less or more favourably than another.

Disability


Gender


Age


Sexual Orientation


Religion or belief


Deprivation


Dignity and Human Rights


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CONTENTS

1. INTRODUCTION AND GENERAL PRINCIPLES ................ ................................................6

2. SCOPE................................................................................................................................6

3. RESPONSIBILITIES................................... .........................................................................6

4. STANDARDS FOR IMPLEMENTING GOOD HUMAN RESOURCE PRAC TICE AND VALUE FOR MONEY WHEN STAFF ARE AFFECTED BY ORGANISA TIONAL CHANGE.............................................................................................................................7

5. MANAGING THE ORGANISATIONAL CHANGE ................. ..............................................8

5.1 STEP 1: Action to minimise the impact of change on staffing levels ............................8

5.2 STEP 2: Consultation with Staff and their representatives...........................................8

General Process.........................................................................................................8

Consultation Document...............................................................................................8

Consultation with Recognised staff representatives .................................................... 9

Notification of At Risk status ..................................................................................... 10

Consultation Timescales........................................................................................... 10

TUPE Consultation (See Appendix 1 for an overview of TUPE)................................ 11

Individual Consultation meetings .............................................................................. 11

5.3 STEP 3 – Selection process for posts in the new structure ....................................... 12

Aim of the selection process: .................................................................................... 12

Matching to Posts (Slotting In) .................................................................................. 12

Ring-fenced Competitive Interview ........................................................................... 13

Appraisal, Sickness and Disciplinary Records. ......................................................... 13

Voluntary Redundancy or Early Retirement .............................................................. 13

5.4 STEP 4: Securing suitable alternative employment ................................................... 14

Defining Suitable Alternative Employment ................................................................ 14

Slot-in Arrangements ................................................................................................ 15

Offers of Suitable Alternative Employment................................................................ 15

Suitable Alternative Employment within the NHS...................................................... 15

Staff on maternity leave ............................................................................................ 16

Trial Period ............................................................................................................... 16

Managing the Trial Period......................................................................................... 17

After the Trial Period................................................................................................. 17

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Where No Suitable Employment can be found.......................................................... 17

5.5 STEP 5 – Redundancy (please refer to Appendix 7) ................................................. 18

Notice of Redundancy .............................................................................................. 18

Redundancy Payments............................................................................................. 18

Right to a Redundancy Payment .............................................................................. 19

Redundancy Estimates............................................................................................. 19

Appeals against Redundancy ................................................................................... 19

6. SUPPORT AND ASSISTANCE AVAILABLE TO STAFF .......... ....................................... 20

6.1 Time off to attend interviews...................................................................................... 20

6.2 Right CoreCare ......................................................................................................... 20

6.3 Application form and interview skills training ............................................................. 20

6.4 Pay protection ........................................................................................................... 20

6.5 Difficulties incurred through change of work base ..................................................... 20

7. AGREEMENT, INTERPRETATION AND REVIEW OF THIS POLICY .............................. 21

APPENDICES

Appendix 1: TUPE - Transfers of Undertaking 21

Appendix 2: Appeals Process 26

Appendix 3: At risk flowchart 28

Appendix 4: Slotting-in criteria 30

Appendix 5: Protection of pay and conditions polic y 31

Appendix 6: Consultation document template 35

Appendix 7: Standards for Implementing Good Human Resource Practice and Value for Money when staff are affected by Organisational Change 36

Appendix 8: Claim form for excess travelling expen ses in relation to change of work location through organisational change. 45

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1. INTRODUCTION AND GENERAL PRINCIPLES

In meeting both the NHS modernisation agenda and responding to the need to provide a high quality health service the Trust may need to change the way it delivers the service. The Trust will seek to ensure staff are kept informed of changes as they arise and aims, wherever possible, to provide stability of employment. The Trust is keen to retain staff in order to benefit from their skills and experience and to acknowledge the contribution that each member of staff makes. However, change is unavoidable and where posts are affected by organisational change the Trust will ensure that a fair and impartial process is adhered to that will ensure that posts are only made redundant as a last resort. The procedure outlined in this document helps to ensure such fair treatment for all staff affected by organisational change. According to the principles of partnership working, there should be an intention to agree aspects of organisational change in consultation with Staffside.

2. SCOPE

This policy applies to all staff directly employed by Lewisham Primary Care Trust. However, trainees, secondments and staff on honorary contracts should be kept informed of all changes covered by this policy. It supersedes any previous policies relating to organisational change and redundancy. Changes brought about by individual lack of capability within a particular job, or because of personal circumstances are not covered by this policy. Reference should be made to the Supporting Performance in Employment Procedure or the Flexibility at Work Policy in these circumstances. Provisions covered by this policy may be subject to change if overridden by Agenda for Change, other nationally negotiated NHS initiatives and guidance or statute.

3. RESPONSIBILITIES

In the event of organisational change, the Restructuring Manager will: • Ensure that all key stakeholders have been consulted prior to the proposal

being drawn up. Stakeholders could be service users, partner organisations etc and may include some staff depending on the nature of the reorganisation.

• Be responsible for drawing up a consultation document on a proposed new structure

• Ensure that the proposal is passed to the Chair of Staffside prior to consultation launch

• Ensure that all affected staff are consulted on the proposed changes ideally with joint management/Staffside consultation launch at the earliest opportunity

• Ensure that the procedures detailed within this policy are followed in all cases.

• Ensure that affected staff are made aware of support and assistance offered by the Trust (see below)

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Normally the Restructuring Manager would be an Associate Director or Head of Service, however, in cases of change across the whole or a significant part of the PCT, the Chief Executive or a Director could be the Restructuring Manager for the purpose of this policy. The Directorate of Human Resource Management will: • Offer expert advice to the restructuring manager on the correct process to be

followed to ensure that it is fair and impartial

• Advise on the structure of the proposal document

• Ensure that the restructuring manager is sufficiently supported throughout the process and that this policy is adhered to in all cases

• Provide application and interview skills training where appropriate

• In the event of a redundancy or early retirement they will ensure that the necessary paperwork is provided to the Remuneration Committee in order that decisions can be made.

4. STANDARDS FOR IMPLEMENTING GOOD HUMAN RESOURCE P RACTICE

AND VALUE FOR MONEY WHEN STAFF ARE AFFECTED BY ORGANISATIONAL CHANGE

It is necessary to ensure that value for money is achieved in any organisational change process and national guidance has been issued to ensure this. Appendix 7 sets out the process agreed by the Lewisham PCT Remuneration Committee for formally agreeing early retirements and redundancies for Lewisham PCT employees prior to giving notice of termination.

The national guidance has been developed with the input of the Department of Health, NHS Employers, HM Treasury and Audit Commission. It is intended to assist all Remuneration Committees in standing up to internal and external scrutiny. Its key driver is to avoid the loss of staff through redundancy wherever possible and to retain valuable skills and experience where appropriate within the local health economy. It supplements the PCT’s own Organisational Change Policy which must be followed in all cases. The obligation to try and find suitable alternative employment and avoid a redundancy continues throughout the notice period and if suitable alternative employment is found then notice will be withdrawn notwithstanding that the Remuneration Committee has agreed to the notice being issued as this is consistent with the overall aim of the guidance and the PCTs own Organisational Change Policy to avoid compulsory redundancies.

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5. MANAGING THE ORGANISATIONAL CHANGE

5.1 STEP 1: Action to minimise the impact of change on staffing levels Where it becomes clear that change is necessary the Restructuring Manager will take the following action:

• Freezing recruitment in the staff groups affected, or other areas

identified as similar in nature, by the Management Team

• Reducing overtime and the use of agency, contractors, bank and locum staff where applicable.

• Where roles need to be covered urgently, the possibility of internal cover should be explored in the first instance. However, if this is not possible, posts should be filled on a temporary basis e.g. where there is a newly created post that could be filled via a ring-fenced interview at the end of the restructuring process or by a re-deployee, this post should not be recruited to permanently prior to the implementation process. In such circumstances, advice should be sought from Human Resources.

Where the manager anticipates or identifies that staff reductions or changes to job content are unavoidable, the manager will liaise with the Directorate of Human Resources Management throughout all steps in the procedure. Every effort will be made to protect existing employees’ job security and to achieve the required changes by voluntary measures.

5.2 STEP 2: Consultation with Staff and their repre sentatives

General Process Staff and Staffside representatives will be consulted regarding the proposed changes. Prior to the consultation launch, proposals should be sent to the Chair of Staffside. Consultation with staff will take the form of open meetings with the affected staff group where management will outline the reasons for the proposed changes and a written draft consultation document will be made available to all staff (see below). Staff Representatives will be invited to attend any open meetings. Notes will be kept of the views put forward by staff at the meeting(s). A reasonable timescale will be established by the manager responsible for the change in consultation with Staffside, within which representatives can consider the proposals, seek views from their members and make representations (see page 8).

Formal responses to consultation should be made in writing to the management contact specified in the consultation document. Where such formal responses have been received, the manager responsible for the change will reply, indicating which responses have been accepted and which have not, together with reasons for the non-acceptance.

Consultation Document A final consultation document must be produced and consultation established with Staffside via the Staffside Chair. This does not, however, preclude a broader consultation document to act as a catalyst for a full and meaningful discussion of all options prior to a decision being made on the final proposal on which the consultation document will be based. This may

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particularly be necessary in cases of complex, strategic organisation-wide change.

The consultation document should contain the following (see also template at Appendix 6):

• Current departmental structure (including organisational chart and list of

affected posts).

• Rationale for the change including financial information where this is deemed appropriate.

• The proposed new structure (including organisational chart and list of proposed new posts).

• The process to be followed including information on which posts will be subject to slotting-in and ring-fenced interviews and any redundancies.

• Associated risks in the interim period while the change is in process.

• Management contact.

• Job descriptions and person specifications to be evaluated (following Agenda for Change guidelines).

• A timetable with the proposed date for achieving the changes or reductions.

• Consultation arrangements with Lewisham JSPC and/or staff representatives via the Chair of Staffside.

Consultation with Recognised staff representatives In accordance with the recognition agreement where an organisational change is being proposed, the Trust will consult with elected representatives of the Trade Unions and Professional Organisations who represent the staff affected by the proposed changes. In these cases, contact should be made with the Chair of Staffside in the first instance. Any staff affected by the change will be consulted directly in addition to this. The consultation will be undertaken with the intention of reaching agreement on the ways of avoiding any proposed dismissals, reducing the number of employees dismissed and mitigating the consequences of the dismissals. The consultation will provide a forum for providing information to staff and Staffside representatives and discussing the following issues:

• The reasons for the proposals

• The number and description of employees affected and, where appropriate, the posts it proposes to make redundant.

• The total number of employees of this description employed by the Trust.

• Proposed methods for selecting staff for posts in the new structure, and redundancy if it is not possible for them to secure suitable alternative employment;

• Methods of carrying out the redundancies and the period over which they will take place.

• Means of calculating any redundancy payments.

These proposals will be confirmed in writing to staff representatives

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Where necessary separate formal consultation meetings will take place with staff side. This may include discussions at the Lewisham Joint Staff Partnership Committee in respect of large-scale change programmes.

Notification of At Risk status Staff whose posts are designated as being "at risk of redundancy" will be informed at the beginning of the consultation process that this is the case. Although a member of staff may be at risk of redundancy, this is not notice of termination of employment on grounds of compulsory redundancy. Notice of termination of employment on grounds of redundancy can only be issued after approval from the Remuneration Committee (see Appendix 7)

Arrangements will be made for each member of staff affected to meet with the relevant senior manager and a Human Resources representative. They will be advised of their right to be accompanied by their Trade Union Representative, colleague or friend not acting in an official or legal capacity. The employees must arrange their own representation. The employee will be informed of: • The reason their post is being made redundant, • Their contractual or statutory period of notice, • The process that will be followed to select staff at risk of redundancy and

to find suitable alternative employment in the event of the member of staff not being selected.

• Job search assistance • Working arrangements during the notice period

Consultation Timescales The following statutory timescales for consultation will apply for consultation with staff and their representatives:

1. Where the proposed change does not include making posts redundant,

consultation should continue for between 10-20 clear working days

2. Where it is proposed that between 1 and 19 posts will be made redundant over a period of 90 days or less, a consultation period will commence at least four weeks before the first dismissal takes effect.

3. Where it is proposed that between 20 and 99 posts will be made

redundant over a period of 90 days or less, a consultation period will commence at least 4 weeks before the first dismissal takes effect.

Where it is proposed that 20 or more employees are to be made redundant over a period of 90 days or less, the Trust will notify BERR using the HR1 form within the above timescales.

4. Where it is proposed that 100 or more posts are to be made redundant

over a period of 90 days or less, a consultation period will begin at least 12 weeks before the first dismissal takes effect.

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TUPE Consultation (See Appendix 1 for an overview of TUPE) Consultation takes place in the same way as any other reorganisation, however, the Restructuring Manager has a legal obligation to pass on the following information to Staffside and other staff representatives if there are changes to or redunctions in posts. In addition to this:

• The fact that there is a transfer happening • Approximately when it is happening • The reasons why it is happening • The legal, social and economic implications for the affected employees • The measures which the employer intends to take in relation to those

employees (this would included any proposed organisational changes) • If no measures will be taken, the fact that there won’t be any such

measures • If the employer is the transferor, the measures, which the transferee

envisages that they will take in relation to those employees who are to be assigned on the transfer (e.g. reorganisations proposed by the new employer)

• If the transferee envisages no measures will be taken then that fact.

PLEASE NOTE: The above should be seen as additional to the information described on page 8 under the heading, Consultation with Recognised staff representatives.

Individual Consultation meetings In addition to group meetings with staff, each member of staff will be given the opportunity to meet with their manager, a member of the Directorate of Human Resource Management and to be accompanied by their Trade Union Representative, a colleague or friend not acting in an official or legal capacity. Notes will be kept of the meetings.

Where a member of staff affected by the review is on annual leave, maternity leave, sick leave or any other authorised leave, separate consultation arrangements will apply which will be agreed between the manager responsible for the change, the employee and their representative. Every effort will be made to ensure that such staff receive any written communications and their views are sought. However the process will not be unreasonably delayed. Such written communications should be sent by recorded delivery.

Where a member of staff is on a career break it is their responsibility to ensure that they keep in touch with their department in order that they can be included in any consultation process.

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5.3 STEP 3 – Selection process for posts in the new structure

Aim of the selection process: The selection process has three key aims:

1. To ensure efficient and effective new structures by appointing those staff

that best demonstrate that they meet the skills and experience required for the jobs.

2. To retain the skills and experience of individuals within the service.

3. To fulfil the Trust’s responsibility to seek to re-deploy staff who are at risk

of redundancy.

The purpose of the process is to protect employment whilst ensuring the appointment of the most suitable candidate.

The process for selecting staff for posts in the new structure is outlined below. The overall aim will be to ensure that the Trust retains the appropriate balance of skills and experience to deliver the service. The selection process must be applied in a completely fair and impartial manner ensuring that the Trust’s Equality and Diversity Policy is fully adhered to.

Hosted Departments: At risk staff from LSL Shared Services and other Lewisham PCT hosted departments/bodies providing services to, and jointly funded by, Lambeth, Southwark and Lewisham PCT’s can be considered for suitable alternative posts in all three PCT’s. Staff working for Lewisham PCT can be considered for posts in their own PCT and LSL Shared Services.

Matching to Posts (Slotting In) Slotting in might be appropriate where the following conditions are met: • The new post is substantially the same as the old post requiring a similar

level of essential skill and any new duties or responsibilities could be undertake by the post-holder (following reasonable training if appropriate). Where a current and new job description and person specification is assessed to be 80% similar and all essential skills are matched, the post may be available for slotting-in.

• The member of staff meets the requirements for the new post and there is no other employee at risk of redundancy, with the same level of skills and experience, who meets the core selection criteria. Where there is more than one eligible candidate, the post will be open to ring-fenced competition.

It would be for the manager responsible for the change, to decide whether it is appropriate to slot-in on the basis of the criteria shown at Appendix 4. However, this decision should be taken in consultation with the employee and their representative with advice from Human Resources.

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A refusal to accept a reasonable offer of being matched to a post may result in the employee's employment being terminated without receiving a redundancy payment.

Ring-fenced Competitive Interview Where the number of staff required to carry out a particular type of work has reduced or will reduce the selection will include a formal interview, following short-listing and appropriate selection tests. Vacancies within the affected Directorate will be ring-fenced and available to affected staff within the team in the first instance. Where an at risk employee is not recruited to a ring-fenced post, the vacancy can then be advertised to all PCT staff and externally where appropriate.

A Human Resources representative should be in attendance on all interview panels.

Failure to apply for a post where the post is considered suitable alternative employment may affect a member of staff’s entitlement to a redundancy payment.

Appraisal, Sickness and Disciplinary Records. The exact selection criteria may differ from reorganisation to reorganisation and will form part of the consultation discussions with Staffside with a view to these being agreed in advance. In common with the reference process for recruitment and selection of staff, consideration of conduct, reliability, performance, personal qualities, timekeeping and attendance records may also be included as part of the selection process for interview.

Voluntary Redundancy or Early Retirement Where appropriate the Trust may ask staff at risk of redundancy to indicate if they wish to be considered for voluntary redundancy/early retirement. Such schemes must be agreed by the PCT’s Remuneration Committee. They will be agreed on a time-limited basis for particular organisational change processes. If such a scheme has been agreed, quotes setting out potential benefits may be obtained through the HR department. Any requests will be evaluated by management. However, the Trust reserves the right to refuse such a request in order to retain the correct balance of skills and experience and consideration of any potential redundancy and/or capitalised pension costs. However, should there be a need to decide between individuals, such decisions will be made by the Remuneration Committee taking account of the guidance set out in Appendix 7 and any additional guidance agreed as part of the scheme. There will be no right of appeal.

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5.4 STEP 4: Securing suitable alternative employmen t

Any member of staff who is not selected for a post following competitive interview or who is otherwise at risk of redundancy will be considered for redeployment within the Trust to posts that constitute suitable alternative employment.

Defining Suitable Alternative Employment Suitable alternative employment can be defined as:

1) Those posts for which an “at risk” individual can receive prior

consideration (i.e. before the post is advertised across the Trust), 2) Those posts which the organisation considers employees must apply for

if they are not to risk forfeiting redundancy payments (see criteria below).

Suitable alternative employment will protect the rights of individuals to be given prior consideration and will only require them to compete within an appropriate pool for posts within the new department / team structure.

It is important that the criteria for determining suitable alternative employment are not defined so rigidly that they prove unworkable or inequitable. For this reason the criteria listed below are provisional and may be amended in consultation with Staffside.

The criteria for determining whether a post can be regarded as suitable alternative employment, and therefore whether an employee who is at risk can receive prior consideration, are:

1. The employee must meet the essential requirement s of the person

specification (including qualifications / experienc e). Where the employee meets most, but not all the essential requirements, appropriate and reasonable training will be provided. Due to the Trust’s commitment to equal opportunities for all staff, advice should always be sought from Human Resources if it is intended that staff be appointed to a post without meeting all the essential criteria.

2. The post in the new structure should not normall y result in a

significant promotion . This will normally mean that there will need to be a ceiling. A 20% salary increase will be used as a guide. In circumstances where a member of staff disagrees with their exclusion from a specific pool for prior consideration for suitable alternative employment, but inclusion would result in a salary increase above 20%, their post will be evaluated against a benchmark post, which has been included in the pool.

Suitable alternative appointment may also be defined as a 20% decrease in salary, however, it should be noted that there is no automatic entitlement to a lower graded post as an alternative to redundancy. Where a suitable alternative post carries a lower salary, the employee will be pay protected according to the rules outlined in Appendix 5.

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For the purposes of this document, salary will be the maximum of the relevant scale or zone. Additional payments such as allowances, enhancements and supplements will be excluded from any calculations.

Where a member of staff secures suitable alternative employment in a post with a salary lower than their previous role they will be entitled to receive protection of their salary. For further information on pay protection, please see Appendix 5.

Pay Protection . Should an employee not secure a post in the new structure but find suitable alternative employment in a post with a salary less than their previous post, they will be entitled to pay protection in accordance with the policy detailed in Appendix 5.

Location. Staff will be expected to take up alternative posts within the Trust, which may or may not be at the same base/location as the individual’s previous job. Individual circumstances will be taken into account. (See Support and Assistance on page 19). Any offer should have regard to the employee's personal circumstances; however, employees will be expected to show some flexibility by adapting their domestic arrangements where possible. For claims for excess travelling expenses through organisational change see Appendix 8.

Slot-in Arrangements A displaced employee can only be slotted into a post (i.e. without a selection interview) where the slotting-in criteria described in Appendix 4 are satisfied, and where there are no other displaced employees able to fulfil this criteria. Such slotting in will only occur, however, in the case of PCT or LSL Shared Services employees where the suitable alternative employment sits within one of these organisations and where the Director agrees this is appropriate. It is strongly recommended that an informal interview between manager and employee takes place so that there is an opportunity to explore more fully whether the post is actually a suitable alternative.

Offers of Suitable Alternative Employment Offers of suitable alternative employment must be brought to the employee’s notice, normally in writing before the date of the termination of the contract and with a reasonable period of time for the employee to consider them. The employment should be available not more than four weeks from the effective date of termination, or the termination date extended to accommodate a 4-week trial period. Where the employee fails to make an application or otherwise indicate an interest in being considered for the post, the employee will be deemed to have refused suitable alternative employment and will not be entitled to receive a redundancy payment.

Suitable Alternative Employment within the NHS A post in another NHS organisation may be deemed suitable alternative employment and therefore the member of staff accepting this offer will not be entitled to a redundancy payment. Advice should be sought from the HR department in all cases.

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From time to time national or Pan-London restricted recruitment procedures may be adopted. In such circumstances, staff at risk of redundancy will be able to participate in that process. In each case consultation with Staffside will take place on local implementation arrangements.

Staff on maternity leave Legislation states that where the employee is on maternity leave while a restructuring takes place, they will be given first refusal of suitable alternative vacancies prior to other employees who have been selected for redundancy. This is the case even where the vacancy arises before the employee has notified the employer of their intended date of return from maternity leave and regardless of whether they are ready to return to work. The post may only be covered on a temporary basis until the employee’s return.

Trial Period Staff who are redeployed into a post in the new structure will undertake a four week trial period in that post in accordance with the Employment Rights Act 1996. A longer trial period may be agreed, for the purpose of retraining the employee for the new employment, or for other reasons agreed in advance.

The effect of the trial period is to give the employee a chance to decide whether the new job is suitable without necessarily losing the right to a redundancy payment. The four-week trial period can be extended for retraining purposes by an agreement which is writing, specifies the date on which the trial period ends and sets out the employee’s terms and conditions after it ends. If the employee works beyond the end of the four-week period or the jointly agreed extended period any redundancy entitlement will be lost because the employee will be deemed to have accepted the new post. This should be communicated to the employee by the Restructuring Manager when the alternative job offer is made.

The manager of the alternative post, in consultation with the restructuring manager will also use the trial period to assess the employee’s suitability. Should the new manager wish to end the trial period within the four weeks for a reason connected with the new job, the employee will preserve the right to a redundancy payment under the old terms and conditions. If the dismissal was due to a reason unconnected with redundancy, the employee may lose that entitlement.

If, during the trial period, the post is considered by the employee and manager to be unsuitable, then other suitable alternative employment will be sought. If there are no other alternative employment opportunities, the employee will be dismissed by reason of redundancy.

If an employee unreasonably refuses to accept or apply for suitable alternative employment, or if they resign or leave during or at the end of the trial period claiming the new post is not suitable they may be entitled to receive a redundancy payment only if the Trust also agrees that the post is not suitable. Where the employee forfeits their right to redundancy under

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these circumstances, the Trust will provide a written explanation as to why the offer is considered suitable and no redundancy payment will be made. Managing the Trial Period At the beginning of the trial period, the manager of the post must agree reasonable work objectives with the employee to cover the 4 weeks. If the employee has any special requirements or need for support in certain areas the employee must make this clear to the manager when these work objectives are agreed.

Regular supervision must take place at intervals to be agreed with the employee to measure progress towards the attainment of the agreed objectives.

After the Trial Period Where it has been accepted that the post constitutes suitable alternative employment, the offer will be made in writing and will confirm the new terms and conditions of the post. The contract will be effective from the first day of the trial period.

In the event of both parties agreeing that the post is unsuitable, the member of staff will receive written notification of this and will receive notice of redundancy, should no other suitable alternative employment be found. The effective date of termination by reason of redundancy will be the last day of the notice period except where the trial period runs past this date. An appeal against selection for redundancy must be lodged within 10 working days of that date.

Where No Suitable Employment can be found Once the consultation has been completed and when no offer of suitable alternative employment is possible, so that a compulsory redundancy is likely, a meeting will be convened with the individual (and their representative) to discuss the situation.

The Chief Executive, Director of Finance, employing Director and the Director of Human Resources will determine if authorisation to give notice of compulsory redundancy should be made to the Remuneration Committee. This will only be done if the criteria set out in Appendix 7 are met.

Once approval has been obtained from the Remuneration Committee notice of termination will be issued.

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5.5 STEP 5 – Redundancy (please refer to Appendix 7)

Notice of Redundancy When the consultation process has been completed and the implementation process starts an assessment will need to be made as to whether it is possible to make an offer of suitable alternative employment. During this period there will continue to be discussion with the member of staff who is at risk and their representative. Where in the view of the Employing Director, the Director of Finance, the HR Directors and the Chief Executive this is not likely to be possible at this time, then approval will be sought from the Remuneration Committee to issue notice of redundancy to the member of staff.

Verbal notice of redundancy will be confirmed in writing and will inform the employee of their right to appeal against selection for redundancy if they are not successful in being appointed to any available new posts in the structure or no suitable alternative employment can be found. The Appeals Procedure is outlined at Appendix 2.

In exceptional circumstances, notice may be given in writing only, as an alternative to meeting with the member of staff e.g. if the individual is abroad on a career break. Advice should be sought from Human Resources on whether this would be appropriate. In these circumstances, written notification should be sent by recorded delivery.

The search for suitable alternative employment will continue during the notice period. Reasonable time off to attend interviews or undertaking re-training necessary to obtain employment will be approved during this period.

Redundancy Payments Where it has not been possible to identify suitable alternative employment, the employee's contract of employment will be terminated by reason of redundancy. Payment will be made in accordance with the individual member of staff's contractual entitlement. The member of staff will be given written details of any outstanding annual leave entitlements and the effective date of the termination of their contract and how to appeal against selection for redundancy (see Appendix 2.

Before a redundancy payment is made, employees shall provide written confirmation that, at the date of termination of the contract, they had not obtained or been offered or accepted suitable alternative employment with the NHS commencing within four weeks of the date of termination. They will further confirm that they understand that the payment is made only on this condition and they undertake to refund it if this condition is not satisfied.

Any member of staff who is dismissed for reasons of gross misconduct during any notice period or trial period will not be entitled to receive a redundancy payment.

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Right to a Redundancy Payment The Trust will apply the national NHS Redundancy schemes. These are set out in the Agenda for Change Handbook and the Pension Regulations.

Transitional arrangement are in place for staff who are part of redundancy exercises which start before 30 September and whose notice of redundancy does not go beyond 30 June 2007.

The redundancy arrangements applicable to each consultation exercise will be included in the final consultation document.

Redundancy Estimates The HR Department should, obtain an estimate of individual redundancy entitlements for those at risk staff who do not secure a post in the new structure. This information will be obtainable from Payroll.

Where an employee's contract is renewed, or they are engaged under a new contract of employment with the same organisation taking effect immediately or within four weeks of the end of the notice period, the employee is not regarded as having been dismissed by reason of redundancy when their old contract ended. The dismissal is expunged and no redundancy payment is due. Such an offer to renew the contract or to re engage the employee must be made before the end of the previous employment. This offer may include provisions for a trial period.

If an employee resigns for any reason during the trial period, or before their notice of redundancy ends, they forfeit their right to a redundancy payment.

Appeals against Redundancy Any member of staff whose contract of employment is terminated by reason of redundancy will have the right to appeal against their selection for redundancy. Any appeal must be made in writing to the Director / Line Manager of the service within 10 working days of the effective date of redundancy (or of notification that the employee has not been short listed) stating the reasons for their appeal against selection. The Appeals Procedure that will operate is attached at Appendix 2.

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6. SUPPORT AND ASSISTANCE AVAILABLE TO STAFF

Staff at risk will be informed of the following support and assistance: 6.1 Time off to attend interviews

An employee who is given notice of dismissal be reason of redundancy is entitled, before that notice expires, to have reasonable time off during working hours for the purpose of looking for new employment or to make arrangements for training for future employment. All absences for this purpose should be agreed with the line manager and a record made of time given.

6.2 Right CoreCare

Any member of staff who is at risk of redundancy or has been issued with notice or redundancy will be informed of how to contact the specialist counsellors at the Employee Assistance Programme, (Right CoreCare) who will be able to provide support. Their number is 0800 1116 387 for counselling, advice & information or 0800 1116 388 for legal or financial advice. Minicom: 0870 5234 680.

6.3 Application form and interview skills training

This will be provided by the Directorate of Human Resource Management.

6.4 Pay protection Should an employee not secure a post in the new structure but find suitable alternative employment in a post with a salary less than their previous post, they will be entitled to pay protection in accordance with the policy detailed in Appendix 5.

6.5 Difficulties incurred through change of work ba se

Travel costs - If a member of staff is relocated to a new base, any additional travelling costs incurred will be reimbursed for a period of fours years in accordance with Agenda for Change terms and conditions. The excess shall be calculated on the basis of bus fares or standard rail fares or, if the employee travels by private motor vehicle, on the basis of the agreed mileage rates. This will be subject to tax.

Childcare costs - If childcare arrangements are affected and the employee incurs extra costs as a result of this, the Trust will reimburse them for the extra amount until alternative arrangements are made up to a maximum of six months after the relocation. Written proof of the extra cost will be required.

Working pattern - Should the change of work base cause exceptional difficulties to the employee in fulfilling their working pattern, consideration should be given to adjusting their working pattern within the hours they are contracted to work. This will, however, be at the manager’s discretion and will be dependent upon the employee’s individual circumstances and service needs. The Flexibility at Work policy gives more detail on flexible working options.

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7. AGREEMENT, INTERPRETATION AND REVIEW OF THIS POL ICY

Where there is an issue regarding the interpretation of this policy, advice will be sought from the Directorate of Human Resource Management. This policy was agreed between the Trust and the Trade Unions Recognised by the Trust on The policy will be reviewed after 12 months of being in operation and thereafter at regular intervals or sooner should legislation or national policy dictate. This policy may be terminated by three months notice in writing by either side.

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APPENDIX 1 TUPE – TRANSFER OF UNDERTAKINGS A guide to the regulations This papers sets out the main requirements of the TUPE legislation and is for information only and to provide general guidance. The Regulations are complex and turn on the facts of each individual case, so advice should be sought from HR on the detailed implications of any proposed transfer. INTRODUCTION Provisions relating to employment rights on the transfer of an undertaking are contained in the Transfer of Undertakings (Protection of Employment) Regulations 2006. In addition within the Public sector there is a policy framework covering public sector transfers – “Cabinet Office Statement of Practice on Staff Transfers in the Public Sector”(January 2000) - COSOP. Within the NHS, COSOP is mandatory. This provides TUPE style protections comprehensively to staff whose jobs transfer in the public sector. The Government has published a guide (August 2006) on the regulations which is available from the DTI website. OUTLINE OF REGULATIONS Purpose The Regulations preserve employees' terms and conditions when a business or undertaking, or part of one, is transferred to a new employer. The Regulations have the effect that: • Employees employed by the previous employer when the undertaking

changes hands automatically become employees of the new employer on the same terms and conditions. It is as if their contracts of employment had originally been made with the new employer. Thus employees' continuity of employment is preserved, as are their terms and conditions of employment under their contracts of employment (except for certain occupational pension rights).

• Representatives of employees affected have a right to be informed about the

transfer. They must also be consulted about any measures which the old or new employer envisages taking concerning affected employees.

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Transfers covered by the Regulations • The Regulations apply when an undertaking or part of an undertaking is

transferred from one employer to another. • The Regulations can apply regardless of the size of the transferred

undertaking. Thus the Regulations equally apply to the transfer of a large business with many thousand employees or of a very small one.

• The Regulations apply equally to public or private sector undertakings. Employer's position in a transfer Under the Regulations, when an undertaking is transferred the position of the previous employer and the new employer is as follows: • The new employer takes over the contracts of employment of all employees

who were employed in the undertaking immediately before the transfer. • An employer cannot just pick and choose which employees to take on. • The new employer takes over all rights and obligations arising from those

contracts of employment, except criminal liabilities and rights and obligations relating to provisions about benefits for old age, invalidity or survivors in employees' occupational pension schemes. COSOP requires new employers to provide “broadly comparable” pension schemes. Transfer within the NHS would allow staff to remain in the NHS pensions scheme.

• The new employer takes over any collective agreements made on behalf of

the employees and in force immediately before the transfer. • Neither the new employer nor the previous one may fairly dismiss an

employee because of the transfer or a reason connected with it, unless the reason for the dismissal is an economic, technical or organisational reason (ETO) entailing changes in the workforce. If there is such a reason then there will be a redundancy situation and the normal organisational change procedures will apply.

• The new employer may not unless the contract of employment so provides

unilaterally worsen the terms and conditions of employment of any transferred employee.

• The previous and new employers must inform and consult representatives of

the employees (see Information and consultation).

Disclosure of “Employee Liability Information” to t he Transferee Employer The transferor employer must provide the transferee with a specified set of information, which will assist them to understand the rights, duties and obligations in relation to those employees who will be transferred. This should help the transferee employer to prepare for the arrival of the transferred employees, and

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the employees also gain because their new employer is made aware of the inherited obligations towards them. The information in question is: • The identity of the employees who will transfer

• The age of those employees

• Information contained in the “statements of employment particulars” for those employees

• Information relating to any collective agreements, which apply to those employees

• Instances of any disciplinary action within the preceding two years taken by the transferor in respect of those employees in circumstances where the statutory dispute resolution procedures apply

• Instances of any grievances raised by those employees within the preceding two years in circumstances where the statutory dispute resolution procedures apply

• Instances of any legal actions taken by those employees against the transferor in the previous two years, and instances of potential legal actions which may be brought by those employees where the transferor has reasonable grounds to believe such actions might occur.

This information should be given at least two weeks before the completion of the transfer. However, if special circumstances make this not reasonably practicable, the information must be supplied as soon as is reasonably practicable.

Employees' position in a transfer When an undertaking is transferred the position of the employees of the previous or new employers is as follows: • An employee claiming to have been unfairly dismissed because of a transfer

has the right to complain to an employment tribunal. • Changes to terms and conditions will be possible if there is an ETO reason. • Transferred employees who find that there has been a fundamental change for

the worse in their terms and conditions of employment as a result of the transfer generally have the right to terminate their contract and claim unfair dismissal before an employment tribunal, on the grounds that actions of the employer have forced them to resign (i.e. constructive dismissal). Employees may not make this type of claim solely on the grounds that the identity of their employer has changed they must individually demonstrate a significant change to their detriment.

• Employees employed in the undertaking immediately before the transfer

automatically become employees of the new employer, unless they inform either the new or the previous employer that they object to being transferred. In this case the contract of employment with the previous employer is terminated by the transfer of undertaking but the employee is not dismissed (i.e. it is treated as a resignation).

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• An employee's period of continuous employment is not broken by a transfer, and, for the purposes of calculating entitlement to statutory employment rights, the date on which the period of continuous employment started is the date on which the employee started work with the old employer.

• Transferred employees retain all the rights and obligations existing under their

contracts of employment with the previous employer and these are transferred to the new employer, with the exception that the previous employer's rights and obligations relating to benefits for old age, invalidity or survivors under any employees' occupational pension schemes are not transferred.

• Occupational pension rights earned up to the time of the transfer are protected

by social security legislation and pension trust arrangements. Redundancy This will be managed in accordance with the agreed Organisational Change Policy. Trade union recognition If the transferred undertaking maintains an identity distinct from the remainder of the new employer's business, the new employer will be considered to recognise an independent trade union, in respect of employees transferred, to the same extent that it was recognised by the previous employer. If the undertaking does not keep its separate identity, the previous trade union recognition lapses, and it will then be up to the union and the employer to renegotiate recognition. Information and consultation Who must be informed and consulted? Staff affected which may be (a) Those individuals due to transfer (b) Their colleagues in the transferor employer whose jobs may be affected but

who will not transfer (c) Their new colleagues employed by the transferee whose jobs may be affected

by the transfer Where employees who may be affected by the transfer are represented by an independent trade union recognised for collective bargaining purposes, the Employer must inform and consult an authorised official of that union. The responsibility to consult and inform rests with both the new and old employer. What must an employer do? First, the employer of any employee who may be affected must tell their representatives: • That the transfer is going to take place, approximately when, and why; • The legal, economic and social implications of the transfer for the affected

employees;

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• Whether the employer envisages taking any action (reorganisation for example) in connection with the transfer which will affect the employees, and if so, what action is envisaged;

• Where the previous employer is required to give the information, he or she

must disclose whether the prospective new employer envisages carrying out any action which will affect the employees, and if so, what. The new employer must give the previous employer the necessary information so that the previous employer is able to meet this requirement. The information must be provided long enough before the transfer to give adequate time for consultation.

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APPENDIX 2

APPEALS PROCESS Employment Status during Appeal process The employee’s employment status will remain as it was at the time the appeal was lodged pending the outcome of the appeals process. Lodging an Appeal Appeals must be made in writing to the manager responsible for the change within 10 working days of receiving the letter confirming the decision that is to be appealed against. It is the responsibility of the appellant to ensure that the appeal has been lodged and received within the time period specified. The appellant must provide a detailed written statement of the grounds on which they are appealing. In normal circumstances, no additional grounds for appeal can be submitted either during further exchange of documents or in advance of the hearing or on the day of the hearing itself. However, in exceptional circumstances the appellant may request that additional grounds for appeal are added. These should be submitted at least 11 working days in advance of the hearing to the Chair. The hearing itself should take place as soon as practicable, ordinarily within 4 weeks of receipt of the appeal. Where exceptional circumstances mean that this will not be possible, the reasons for the delay will be communicated to the employee in writing. The Director / Line manager responsible for the decision will provide a statement addressing the specific points of concern raised in the appellant's written grounds and the rationale for their decision. The statement will also provide sufficient background information to enable the manager hearing the appeal to understand the reason for the action and appreciate the circumstances of the case. These statements, together with copies of any relevant correspondence, will be sent to all parties to the appeal at least 5 working days before the hearing. Procedure at the Hearing The Chair will be accompanied by a Human Resources representative, as secretary to the appeal, to advise on procedural matters and take a record of the proceedings. The appellant has the right to be accompanied by a Trade Union/Professional Association representative or friend. Where the employee’s representative is of the legal profession, it will be made clear that such representation holds no legal status within the procedure. The Trust will not reimburse any costs incurred by the appellant's representative. It will remain the responsibility of the appellant to arrange representation for the dates given. The Chair has the right to rule on the admissibility of any questions asked or evidence presented at the hearing. He/she also has the discretion to seek clarification or amplification of evidence and to adjourn the hearing for any reason,

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such as to allow further evidence to be produced or to clarify procedural matters, at any stage in the proceedings. If the appellant fails to attend the hearing without adequate reasons, they will forfeit the right to pursue the appeal. The procedure at the appeal hearing will be as follows: Introductions by Chair • Appellant will present evidence to support their case that the procedure was

not adhered to or that it was not carried out fairly or reasonably. • The manager will have the opportunity to ask questions of the

appellant/representative. • If the appellant calls any witnesses, the appellant, the Chair and the manager

will have the opportunity to ask questions of the witnesses. • The Chair will have the opportunity to ask questions of the

appellant/representative. • The manager will present their case in support of the action taken, in response

to the appellant's grounds for appeal. • If the manager calls any witnesses then the manager, the Chair and the

appellant or their representative will have the opportunity to ask questions of the witnesses.

• The appellant or their representative will have an opportunity to ask questions

of the manager The Chair will also have an opportunity to ask questions of the manager.

• The Chair will invite the manager and the appellant/representative to sum up

their evidence in turn. The appellant will have the right to sum up last. In summing up, neither party may introduce any new matter.

• After the summing up, both sides will withdraw to allow the Chair to deliberate

in private. The HR representative will remain with the Chair to provide procedural and technical advice.

• The Chair will consider the stated grounds for appeal and decide whether to

uphold or reject all the circumstances. • If necessary, the Chair may recall both parties to clarify points of uncertainty. • The decision will normally be given to all parties verbally on the day of the

hearing, provided time constraints allow. • The outcome of the appeal will be communicated in writing to the appellant

within 10 working days of the hearing taking place.

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APPENDIX 3

AT RISK FLOWCHART

End of consultation period STEP

1 Restructuring manager (RM) conducts slotting-in and ring fencing interviews (if applicable)

↓

2 For those employees unsuccessful at finding a position in the new structure (i.e. who are displaced) RM provides employee with opportunity to complete supporting

statement (advising of skills, experience etc). This will be used to find suitable alternative jobs

↓

HR advises Recruitment Bureau (RB) of displaced staff including sending staff profiles for RB to screen jobs

And sends an email to their operational managers within PCT and HR links in other PCTs

3

Displaced staff from SSP and other Lewisham PCT hosted bodies providing

services to, and jointly funded by, Lambeth, Southwark and Lewisham

PCT’s Request for posts within SSP/ pan-PCT

PCT ‘At Risk’ Staff Requests for posts within own PCT and

SSP

↓

RB advises HR of suitable posts as and when they arise based on profiles 4 Posts in SSP and pan-PCT PCT ‘At Risk’ Staff Posts within own

PCT and SSP

↓

5 HR advises recruiting line managers of displaced employee(s) and if appropriate their post will be held for 1 week while at risk employees considered (the possibility of a slot-in arrangement without interview only applies to PCT and SSP staff who are considered 80% suitable for a post sitting within the PCT or SSP structures. In all other circumstances a ring-fenced interview will take place). See STEP 4 for full

details)

↓

6 Agreement obtained (line manager will be made aware (by HR) of the financial and organisational benefits of taking displaced staff

↓

7 RB holds advert (With a view to holding ring-fenced or slot-in interviews within 2 weeks)

List of all potential/ring fenced posts sent to current displaced employees on central list

↓

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8 HR advises RM and Employee of the options and alternatives available to them Where employee refuses to be considered for the post, they will be made aware of

options available i.e. Redundancy without pay

↓

9 Job Description forwarded to employee and employee updates their supporting statement accordingly (HR support if required)

↓

10 Interview date arranged by Line Manager and communicated to RB

↓

11 RB complete recruitment process (including invite letters, requesting one reference, send interview record form to panel). Employee may amend supporting statement or

complete new statement within given timeframe (2 days before interview)

↓

12 After interview RB / HR relays information to manager and employee

↓

13 Rationale for decision available from recruiting line manager

��

14 If successful, confirmation letter issued If unsuccessful, normal recruitment procedures apply

↓

15 Trial period (four week trial period)

��

16 Is successful, change of contract letter raised

If unsuccessful, normal recruitment procedures apply

↓

↓

17 Employee continues in post Go back to step 4 Definitions Suitable alternative employment – See page 15 Ring-fenced posts – where the employee has priority interview for posts within the affected Directorate. See page 14 for further details Redundancy Payment – See page 19

APPENDIX 4

CRITERIA TO DETERMINE SLOTTING INTO POSTS IN THE NEW STRUCTURE A post holder will be slotted into a post in the new structure where their responsibilities are substantially the same in the new structure by comparison to the existing post. (The job description and person specification for the existing post must be up to date and have been agreed with the post-holder). Substantially the same means that the responsibilities of the post are 80% substantially the same as the individual’s existing post, an assessment having been made using the following criteria 1. Job Content Job content refers to what the individual does on a day-to-day basis, their

key tasks (including the balance of time spent on each) and their type of work, as detailed in the job descriptions

2. Salary

The new post salary should be no more than 20% higher or lower than the existing post

3. Accountability and Authority

• Management of staff (i.e. numbers of staff managed and their grades)

• Management of budgets (including the size of the budget)

• Reporting lines/status (i.e. the individual’s position within the hierarchy and their level of autonomy)

4. Skills Required

• Whether the skills required to do the job are roughly the same, as detailed in the person specifications

• Whether any new skills are needed

• Whether a lower level of skill is required to do the job 5. Professional Development

In consultation with the employee, the manager should assess the effect, if any, that the change would have on the longer-term career plans and development of the affected individual.

6. Terms and Conditions

a. Whether the individual will be expected to change work location b. Whether the individual will be expected to be more/less mobile c. Plus any other issues that relate to changing the terms and conditions

of the individual

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APPENDIX 5 SALARY PROTECTION Introduction This policy was developed to provide protection to staff affected by organisational changes resulting from transition to PCT’s. It is adopted here for the protection of staff employed by Lewisham PCT who are affected by subsequent organisational change. The policy is carried over unchanged, save for details such as organisational titles. During periods or organisational change the PCT acknowledges the aspirations and well being of its employees and, therefore, also acknowledges the importance of arrangements for safeguarding the pay and conditions of service of individual staff adversely affected by organisational change. This agreement is designed to contribute to stability of employment by providing an alternative to redundancy and early retirement. Scope These arrangements apply to all employees of Lewisham PCT. This agreement does not override the protection arrangements for staff who are already in receipt of protection awarded through Section 47 of the General Whitley Council, Agenda for Change or some other national agreement. These individuals may continue to receive this protection in relation to the change effected until its notified expiry time. Staff who attract protection under one of the functional Whitley Councils or Agenda for Change may choose to be protected under the provisions of either that or this agreement. Arrangements for situations arising from Commission ing a Patient-Led NHS Re-organisation Non-Lewisham PCT employed staff who have been displaced as a result of Commissioning a Patient-Led NHS, and who then secure suitable alternative employment within Lewisham PCT, will have their existing pay protection arrangements honoured. Where a member of staff from another NHS organisation is prepared to take a post at a lower grade with Lewisham PCT as an alternative to compulsory redundancy, Lewisham PCT should determine a period of pay protection where it is cost-effective to do so (i.e. where the cost of the pay protection is less or equal to the cost of compulsory redundancy). Change caused by circumstances other than organisat ional change To be eligible for protection the member of staff must be affected by organisational change. Changes brought about by an individual’s lack of capacity within a particular job, or because of personal or other circumstances

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are not covered by this procedure. In respect of capability concerns, reference should be made to the Supporting Performance in Employment Procedure. It should be noted that this policy does not provide for an automatic entitlement to a lower graded job with protection as an alternative to redundancy. Protection of salary will cease if the employee moves on their application to a post within the Trust where the basic salary is either lower, higher or equal to the protected salary. Definitions • Basic Salary - basic salary is exclusively the weekly or monthly sum due in

respect of basic hours worked by the individual concerned, within the standard working week as defined in the individual's contract of employment, plus any responsibility or qualification allowances, proficiency payments or distinction award. Basic salary will be reckoned on the day immediately preceding the first day of employment in the new post.

• Earnings in the New Post - means the sum of the basic salary in the new

post as defined above and any remuneration in respect of overtime, shift work and other additional duties.

• Mark Time Protection - occurs when the financial sum of the basic salary is

preserved, but increments and uplifts are excluded. The effect of mark time is to allow a period of "waiting" for the new salary/allowance to catch up with the old rate.

• Downgrading - occurs when the new post, irrespective of its grade and title,

carries a basic salary scale with a maximum point lower than the maximum point for the previous post, or lower than that of the grade held in the previous post.

The manager will consider whether of not a post represents reasonable alternative employment within the definition of the HR policy and employment legislation.

• Continuous Service - continuous service is defined, as continuous

employment in the NHS without a break of more than three calendar months and for the purposes of this agreement only service at the grade attracting protection will count as continuous service when calculating entitlement to protection.

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Protection of Basic Salary where downgrading is inv olved Where a member of staff is downgraded as a result of the organisational changes the PCT will protect basic salary in accordance with the following: - Up to 3 Years: Full Protection and 6 months Mark time After 3 years: Protection ends; and the salary for the new post is

assumed along with all terms and conditions of service. Short Term Protection of Additional Earnings

This will be 6 Months Full Protection (based on the previous 4 months average) Protection, whether or not downgrading is involved, will be provided for additional earnings. Additional earnings are defined as overtime, special duty payments, excess hours payments and domiciliary fee income. Allowances are defined as shift duty, night duty, unsocial hours and stand-by and on-call duty. The amount of protection will be based on the previous 4 month average of the above and will be payable only if it is a regular requirement of the job. Protection of other Terms and Conditions of Service All protection arrangements under Agenda for Change will be honoured. • Period of Notice; Employees required to move to a new post will have their

dismissal notice period protected (this includes their accrued statutory notice entitlement).

• Hours of work: Employees required to move to a new post will acquire the conditioned hours appropriate to the new post – in the case of posts banded under Agenda for Change, this will be 37.5 hours. If the hours worked in the new post exceed hours previously worked, long-term protection entitlement is based on (hours worked previously) x (rate applicable previously). The additional hours in the new post are paid at the rate applicable to the post.

• Annual leave: There will be no change to annual leave entitlements since these entitlements are the same for all posts/people banded under AfC.

Conditions Employees with an entitlement to protection in accordance with paragraphs above may at any time opt for the complete package of remuneration and conditions of service applicable to the new (or any subsequent post). This option, once exercised, cannot be cancelled. Short-term protection of earnings is conditional on the employee undertaking any overtime, shift work or other additional duties which may be required up to the level at which earnings in the new post equals the protected earnings. Short-term protection of earnings is also conditional on the employee accepting any subsequent offer of another suitable post with the Trust that attracts a basic wage or salary in excess of the basic wage or salary applying to the new post.

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Long-term protection of basic wage or salary where downgrading is involved is also conditional on the employee giving an undertaking to move to a more senior post with the Trust, or where this would be reasonable, with another employing authority. Agenda for Change Should a post occupied by a pay protected employee be down-graded as a result of Agenda for Change matching or evaluation, the employee occupying that post will graded according to the new grade of the post once their pay protection arrangements cease. Should the post be up-graded as a result of Agenda for Change matching or evaluation, the employee would be graded according to the new grade of the post backdated accordingly.

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APPENDIX 6

CONSULTATION DOCUMENT GUIDANCE

Background to Change National framework, strategic direction, new initiatives as applicable Current structure including structure chart Posts, grades, whole time equivalents (i.e. part time/full time, reporting to) Reason for Change Highlight what has worked and where areas need improvement, either due to improvements being found or change of strategic direction/service provision. Include information on financial considerations if appropriate. Proposed Structure including structure chart Posts, grades, reporting arrangements (i.e. part-time/full-time, reporting arrangements) Posts affected and how affected Which posts are affected and are they changed or deleted from the structure. If changed, highlight main changes. Include updated job specifications as Appendices. Selection process Detail each post and whether it is subject to slot-in or ring-fencing, explaining rationale. Pay protection and excess travel arrangements If pay protection will apply, these details should be included in the document. Likewise, if changes will mean a change in base, where staff incur extra costs they will receive excess travel reimbursement and this should be included if applicable. Time table Include dates for consultation launch, individual consultation meetings, consultation close date, period for review of feedback from consultation, application skills workshops (if required), application closing dates, interview dates, proposed date from which new structure will take effect Support offered to staff Contact details should be given for the restructuring manager, HR and CoreCare

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APPENDIX 7

STANDARDS FOR IMPLEMENTING GOOD HUMAN RESOURCE PRACTICE AND VALUE FOR MONEY WHEN STAFF ARE AFFECTE D BY ORGANISATIONAL CHANGE IN LEWISHAM PCT (1) Introduction

It is necessary to ensure that value for money is achieved in any organisational change process and national guidance has been issued to ensure this. This report sets up a process for formally agreeing early retirements and redundancies for Lewisham PCT employees prior to giving notice of termination. The full national guidance is appended to the report.

(2) National Review of Retirement and Redundancy

The national NHS position in respect of redundancy and early retirement still remains unresolved in the long term. These schemes have had to be revised in the light of the Employment Equality (Age) Regulations 2006, which take effect from 1 October 2006. In order to address this a review has been established. It is being led by the NHS Employers as part of the NHS pension review. There is little information at this stage but the NHS Employers do state that: “It is likely that existing staff will be affected. However when changes are made, fair transitional arrangements for existing staff will be an important part of the review.” The intention is to negotiate and agree in partnership any changes by October 2006. In the meantime transitional arrangements for redundancies arising from Commissioning a Patient Led NHS (CPL NHS) have been agreed. These are also applicable to other NHS staff that are part of a redundancy exercise agreed before 30 September 2006.

(3) Transitional Arrangements (to 30 th September 2006)

Staff in posts which are declared redundant before 30th September 2006 (provided their redundancy notice expires before 30th June 2007) are subject to protection in that the redundancy provisions currently in place will continue to apply to them. Staff who are in posts declared redundant after 1st October 2006 are likely to be subject to some form of protection but what that will be in is unknown.

(4) Statutory Redundancy after 1 st October 2006 The government has now decided to make minimal changes to the statutory redundancy scheme on the grounds that older workers suffer more disadvantage that younger workers in the job market and

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therefore the payment of higher compensation can still be objectively justified. The main areas affected by the new regulations are: Age limits – the current upper and lower age limits (of 65 and 18 respectively) for statutory redundancy pay will be removed. Age bands – the proposal that a single multiplier will be used to calculate statutory redundancy pay has been abandoned, so the length of service multipliers and 20 years cap on the length of service will remain. The calculation formula will still use the following age bands:

• Half a week’s pay for each year worked before age 22 • One week’s pay for each year worked between 22 and 41 • One and half week’s pay for each year worked after 41.

(5) Enhanced Redundancy Schemes

Any enhanced redundancy scheme will have to be objectively justified if it treats staff of different ages differently as the NHS schemes currently do. This means any differential treatment on grounds of age in the new scheme needs to show that what is proposed is proportionate and achieving a legitimate aim. The discriminatory effect must be outweighed by the legitimate aim that is being pursued and there should be no reasonable alternative that is less discriminatory or which avoids discrimination altogether. It is understood that enhanced redundancy schemes that follow the methodology of the statutory scheme – e.g. by using actual pay rather than capping it at the statutory limit (£350 per week) will be permitted under the Regulations.

(6) Severance Estimates and Actual Costs

The figures provided in the report are estimates these are either provided by Payroll or directly by the NHS Pensions Agency. The NHS Pensions Agency will not actually confirm costs until the termination has taken place. Actuals may differ from estimates as a result of contractual pay awards, the member of staff having a birthday (redundancy entitlement is calculated on actual age in completed years) or completing another year of service (redundancy is calculated on completed years). In the event of a significant change in the figures being identified a further report would be made to the Remuneration Committee.

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HR PROCEDURE FOR AGREEING INDIVIDUAL REDUNDANCY AND EARLY RETIREMENTS

(1) Introduction 1.1 This procedure must be followed before giving an individual employee

notice of termination of employment. It must be done in time to enable contractual notice to be given.

1.2 This process is intended to ensure that the provisions of “Standards for

Implementing good human resource practice and value for money when staff are affected by organisational change” are met by the PCT.

1.3 This procedure does not of itself change or supersede the PCT’s

Organisational Change Policy. It is anticipated that individual and collective staff consultation will have been completed by the time cases are brought to the Remuneration Committee for approval and that the HR Director, Employing Director, Director of Finance and Chief Executive will have concluded that there is no reasonable prospect of finding suitable alternative employment and therefore notice of termination needs to be issued.

1.4 The obligation to try and find suitable alternative employment and avoid

a compulsory redundancy continues throughout the notice period and if suitable alternative employment is found then notice will be withdrawn notwithstanding that the Remuneration Committee has agreed to the notice being issued as this is consistent with the overall aim of the guidance and the PCTs own Organisational Change Policy.

(2) Procedure 2.1 Staff still at risk following an organisational restructure will be sought

suitable alternative employment and supported to find work within the PCT and wider NHS.

2.2 If there is no suitable alternative employment that can be offered, then

staff will have an individual meeting with the restructuring manager and HR. Following this the HR representative will complete the attached form and seek the necessary approvals for a case to be considered by the Remuneration Committee.

2.3 The Remuneration Committee will consider each case in the light of

national guidance and the facts of the case. 2.4 Where SHA ratification is required this will be obtained by the PCT’s

Finance Department. 2.5 During this time the search for suitable alternative employment will

continue and the most up-to-date position will be reported to the Remuneration Committee.

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2.6 Following the Remuneration Committee decision the individual member

of staff will be informed of the outcome and notice will be issued. 2.7 The timing of issuing any redundancy notices should also ensure that

the effective termination date does not result in a requirement to make payment in lieu of contractual notice (PILON). Where such a payment, of three months or less, is unavoidable or considered appropriate for exceptional reasons this should be supported by a robust business case signed off by the Remuneration Committee and the chief executive. (For payments exceeding three months see paragraph 4.2 of the guidance reproduced below)

2.8 The key principle of HMT guidance [DAO (GEN) 11/05] is that

special severance payments (i.e. payments in excess of or outside of statutory or contractual entitlements or payments which are novel and/or contentious including payments in lieu of notice exceeding three months) when staff leave public service employment should be exceptional. In such a situation a robust business case must be produced and the action approved by the Remuneration Committee and the chief executive. However, prior to any such offer being made, the signed-off business case must be approved by HMT. Where such a payment is made without HMT approval, accounts will be qualified by auditors in line with the standard Treasury Office of Accounts budgeting guidance on novel and contentious items.

(3) National Guidance on Decisions 3.1. Chief executives and where appropriate, their Remuneration

Committees, must not allow changes to be made to the terms and conditions of employment of affected staff for the purpose of enhancing any benefits which might be paid on termination, neither must agreements be entered into which seek to extend the period of extended employment.

3.2. All measures with regard to redeployment activity should be fully

explored prior to considering the launch of a voluntary severance or premature retirement scheme. Where such a scheme is thought to be necessary a business case should be developed which will withstand external scrutiny

3.3. All severance agreements must be approved by an organisation’s

Remuneration Committee regardless of the cost of the severance. All Remuneration Committees and Boards are ultimately accountable for these decisions and the process used in making them. In order to arrive at a fully informed decision when considering proposals for either voluntary or compulsory redundancy, Remuneration Committees

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should ensure they have followed due diligence and process, including but not limited to the following:

1. Obtaining appropriate legal and other advice, including

observations from auditors

2. Evidence to show that every effort has been made to secure suitable alternative employment by both employer and employee

3. Confirmation that the skills and experience of volunteers could not

be better placed within the new organisations

4. Provision is in place for full capitalised costs (i.e. total costs including employers’ contributions) for any proposed redundancies or premature retirements. It should be noted that Financial Reporting Standard (FRS)12 describes how, for accounting purposes, treatment of a liability that is of uncertain timing or amount should be treated

5. Details of the individual’s contractual entitlement including the

capitalised costs of any premature retirement benefits based, where necessary, on both the date of the actual departure and that which it would have cost if the individual were to remain in employment up to the end of the notice period where that would be later.

(4) Commissioning a Patient Led NHS/SHA Ratificatio n

Where severance is related to CPLNHS, the chair of the PCT will formally notify the SHA of their intention to approve such requests providing them with the information the Remuneration Committee have considered, together with the minute of the Committee’s discussion of the issue. PCT Remuneration Committees should seek final ratification from the SHA chief executive of decisions they take in the following circumstances:

• Where the severance payment relates to an executive director/chief

executive • Where the severance payment relates to an employee below

director level and the full capitalised costs exceed £50,000.

The SHA will also ensure that the provisions in paragraph 4.2 of the national guidance (see above) are complied with.

(5) Payments on termination of contract

Any payments made in connection with the termination of an individual’s employment shall be in accord with their contract of employment and statutory obligations. They are as follows:

5.1 Resignation before notice of redundancy is issu ed

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In the event that an employee resigns before notice of redundancy has been issued there will be no entitlement to a redundancy payment or enhanced pension benefits. The employee shall be paid his/her normal salary and benefits entitlement for the period of notice that he/she works, together with payment for any accrued and outstanding annual leave entitlement.

5.2 Termination of employment after the issuing of notice but in

advance of the end date of that notice at the insti gation of the employee

In the event that an employee has been issued with a notice of redundancy but wishes to bring his/her employment to an end before the end of the stated notice period and where the circumstances allow that early departure, the employee will only be paid up to the date of that early departure. The individual will still receive any redundancy and/or premature retirement benefits calculated on the basis of the revised date of cessation of employment: payment of salary will cease at the employee’s agreed date of departure.

5.3 Termination of employment by mutual agreement p rior to the

issuing of notice of redundancy

If, at a point in time before the formal issuing of notice, it is mutually agreed that there is no reasonable prospect of a short term project being found for a particular at risk person, or that following that short term project there is no reasonable prospect of suitable alternative employment being found that eliminated the entitlement to redundancy and/or premature retirement benefits, consideration will be given to the early departure of the person concerned (i.e. for CPLNHS, before the guaranteed employment date of 30 June 2007 for PCT staff). Such a situation is anticipated as being rare and must demonstrate clear value for money.

5.4 Termination of employment after the issuing of notice but in

advance of the end date of that notice at the insti gation of the employer

While it is possible that an individual might wish to resign at a date earlier than the end of the notice period for personal reasons it is not anticipated that there will be a need for an employing authority to commence such proceedings. In the extraordinary event that circumstances arise where it becomes necessary to consider an earlier departure, appropriate HR and financial advice should be sought.

(6) Redundancy and premature benefits

Redundancy and/or premature retirement benefits will apply as prescribed by the provisions of Section 16 of the Agenda for Change

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NHS Terms and Conditions Handbook (or Section 45 of the General Whitley Council Handbook) and the provisions of the NHS Compensation for Premature Retirement Regulations. The provisions of the NHS Superannuation Scheme will not apply in the event that the employee concerned is not a participant in that scheme. In such a case, alternative reasonable benefits as may be detailed in the contract of employment may be paid. In the event that no provisions are contained within the contract of employment, statutory redundancy payment will be made.

(7) Annual leave

Payment will not normally be made in lieu of annual leave other than as might be allowed for in the contract of employment. It should, other than in exceptional circumstances, be taken prior to the ending of the employment. Where it has not been possible, due to accepted operational reasons, to take the full entitlement to annual leave, the termination date may be extended by the amount of the outstanding leave. For CPLNHS this should not extend the period of notice beyond 30 June 2007 for PCT staff. In such an exceptional situation, the person concerned should receive payment in lieu of the annual leave.

(8) Inability to receive/retain benefits if employm ent within the NHS

and other qualifying employers is obtained within f our weeks of ceasing employment

As detailed within Section 16 of the Agenda for Change NHS Terms and Conditions Handbook (or Section 45 of the General Whitley Council Handbook); no redundancy payment or premature retirement benefits will be made or allowed to be retained where the person concerned obtains employment within the NHS or other qualifying organisations within a period of four weeks of the cessation of t heir employment . Neither will a person concerned be able to receive a redundancy payment or premature retirement benefits if they secure a promise of employment but defer commencement of that post within the NHS or qualifying organisation within four weeks of leaving their employment.

(9) Other benefits contained within the contract of employment

Any other benefits that are included within an individual’s contract of employment and which require to be recognised in the package of termination benefits should be brought to the attention of the appropriate HR and finance advisers to ensure that inclusion of such elements in the calculation of benefits is necessary. It should be noted that in many cases the inclusion of non-standard provisions in determining the severance entitlements of an employee will be ultra vires.

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(10) Refusal to accept suitable alternative employm ent

In a redundancy situation, an employer has a legal obligation to seek to avoid redundancy by trying to identify suitable alternative employment for displaced staff. An employee may forfeit his/her right to redundancy payments if s/he does not apply for, or accept an offer of, suitable alternative employment. When considering whether a post constitutes suitable alternative employment, employers need to consider whether it provides similar earnings, has similar status, is within the member of staff’s capability and does not involve unreasonable additional inconvenience.

(11) Financial considerations

The PCT has identified the costs of early retirements and redundancies as a key financial risk in the 2006/2007 and 2007/2008 financial year.

The Director of Finance and the Director of Human Resources are working closely on minimising the financial impact of these costs and any additional costs resulting from these decisions will be incorporated into the PCT’s financial report on a regular basis.

APPENDIX 8

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