the management of organisational change … organisational change policy – (jan 2008) page 3 of 27...

THE NATIONAL INSTITUTE FOR HEALTH AND CLINICAL EXCELLENCE SPECIAL HEALTH AUTHORITY

The Management of Organisational Change Policy and Procedure

Responsible officer Associate Director HR Author: Staff Involvement Forum

– Policy Sub Group Date effective from: 1 January 2008 Date last amended: 1 January 2008 Review date: 1 January 2010 Audience: NICE staff

Managing organisational change Policy – (Jan 2008) of 27

THE NATIONAL INSTITUTE HEALTH AND CLINICAL EXCELLENCE

SPECIAL HEALTH AUTHORITY

The Management of Organisational Change

Policy and Procedure

Contents Title Page 1 Contents 2 Introduction 3 Diversity 4 Principles 4 Scope 5 Organisational Change Process 5 Consultation 5 Duration of Consultation 6 Step by Step Guide to Managing Change & Consultation 6 Implementation (where redundancy is NOT an outcome) 8 Implementation (where redundancy IS a possible outcome) 9 General 9 Definitions 9 The Process of Implementation 10 Assimilation to the New Structure 11 The Order of Filling Posts 12 Automatic slotting-in 12 Competitive slotting in 13 Preferential interviews 14 Confirmation of “at risk” status 14 Redeployment into Suitable Alternative Posts 14 Retraining 16 Trial Periods 16 Protection of pay and terms and conditions 17 Staff support and assistance 17 Redundancy – terminating the employment contract 17 Notice and annual leave 18 Redundancy: eligibility & benefits 18 Vacancy Management 18 Transfer of staff into and out of the Institute 20 Relocation of work base 20 Appeals 21 Monitoring & Review 21

APPENDIX A – Definitions 22 APPENDIX B – Template for Consultation Paper 25 APPENDIX C – Flow diagram – Implementing change 26 APPENDIX D – Flow diagram – vacancy management 27


The Management of Organisational Change

Policy and Procedure

1. Introduction

1.1 This document is designed to outline the key principles, procedures and practices that the Institute will apply to ensure the effective and fair implementation of workplace change which is consistent with good management practice.

1.2 Appendix A provides definitions of some of the key words and phrases

used in this document. These words have been highlighted in this document with the use of italics and emboldening.

1.3 Organisational change for the purpose of this policy and procedure

may include (but is not limited to): • Restructuring of departments, centres and directorates; • Significant changes to posts that are filled by members of staff; • The transfer of functions in or out of the Institute. • The relocation of a staff member’s work base that is required to

accommodate the needs of the Institute.

1.4 Open, honest and consistent two-way consultation will take place with UNISON and staff representatives. Information about proposed change, its implications and potential benefits will be communicated clearly to all staff and staff are encouraged to contribute their own ideas and to voice any concerns with their managers. At all stages of the process, staff will be encouraged to seek the advice and support of UNISON and staff representatives and managers.

1.5 This policy and procedure makes a distinction between those

organisational changes that are likely to result in posts being redundant and those that are not. Section 7 of this policy details what should be done where change may result in redundancy. It is important to note that not all organisational change will result in posts being made redundant.


2. Diversity

2.1 Equality and fairness have been considered and incorporated at every stage of this procedure. In accordance with our Equality and Diversity Policy, the Institute aims to ensure that no unlawful discrimination (on the grounds of sex, race, disability, sexual orientation, religion or belief or age) occurs and equality of opportunity is observed.

2.2 We encourage employees who feel that equality and fairness has not

been observed during the implementation of organisational change to bring this to the attention of the Associate Director – HR (AD-HR).

2.3 The Institute will undertake an Equalities Impact Assessment for all

proposed changes that are dealt with under this policy. The purpose of the assessment is to consider the effect of the proposed changes and whether they adversely impact on any particular groups specified in 2.1 above.

3. Principles 3.1 The Institute will seek to ensure that it employs the optimum level of

staff, deployed in the most appropriate way, to achieve its business objectives.

3.2 The Institute recognises its responsibility to ensure job security for its

employees as far as reasonably possible. 3.3 Organisational change resulting in posts being made redundant will

only occur after all other options have been fully considered. 3.4 The Institute will ensure that the application of this policy is:- 3.4.1 compliant with statutory obligations; 3.4.2 consistent with NHS good practice; 3.4.3 conducted in an open and fair way; 3.4.4 involve staff and their UNISON and staff representatives through

consultation and discussion, and the provision of suitable staff support.


4. Scope 4.1 There should always be scope for managers to make minor changes to

the work undertaken in their teams without it needing to be addressed under a formalised change process. This policy will not therefore apply to, or interfere with, general day to day changes and variations (covered by other policies) that occur to job content from time to time. Day to day changes and variations may include, but are not limited to, changes to job descriptions, the distribution of discrete time-limited work including project work or the re-grading of posts that over time have expanded to take on new tasks and responsibilities.

4.2 This policy applies to all members of staff (including those employed by

the Institute but with secondment arrangements to other organisations or on a leave of absence (e.g. maternity leave, career break, long term sick etc).

4.3 This policy does not extend to staff employed on agency contracts or to

staff seconded from and employed by other organisations. 5. Organisational Change Process 5.1 The process detailed in the following section will apply to all

organisational change other than that deemed to be as specified in section 4.1 above.

5.2 Where redundancy is a possible outcome of a proposed change,

section 7 must also be followed. 5.3 Consultation 5.3.1 The Institute will consult with all staff and UNISON and staff

representatives, in order that individuals will have the opportunity to feedback their views on the proposed organisational change and how the implementation of the change process is managed.

5.3.2 Line managers must ensure that all staff that are not at work either due

to secondment, long term sickness absence, maternity/paternity leave, career break, sabbatical or any other reason are included in all stages of the consultation process and receive all relevant documentation.

5.3.3 Consultation will take place in partnership with UNISON and staff

representatives. 5.3.4 UNISON and staff representatives will be allowed reasonable time off

to participate in the consultation process.


5.4 Duration of consultation 5.4.1 The consultation period shall provide a reasonable amount of time for

UNISON and staff representatives to consult with their colleagues or members and formulate responses to the appropriate manager. Where it is not anticipated that the proposed change will result in posts being made redundant the period for consultation shall be no less than 14 calendar days. This can be negotiated with UNISON and staff representatives on a case-by-case basis where it is felt more time is needed.

5.4.2 However, where there is a possibility that the proposed change may

result in posts being redundant and staff being at risk of redundancy, or where TUPE applies the Institute shall consult as follows:-

Calendar Days (no less than)

• where fewer than 100 redundancies are proposed

30 days

• where more than 100 redundancies are proposed 90 days 5.5 Step by Step Guide to Managing Change & Consultation 5.5.1 The following section outlines the steps that should be taken (by the

manager responsible for the change unless otherwise specified) to effectively manage the change process:-

Step 1 – consider an outline plan of the proposed changes to be made, giving careful consideration to the reasons the change is needed and the various options available. Step 2 – undertake an Equalities Impact Assessment. Step 3 - discuss the proposals, and the Equalities Impact Assessment, with the AD-HR who will also review the final consultation paper before submission to the SMT. Step 4 – discuss and agree if the Vacancy Management principles as set out in section 8 need to be implemented, with the AD-HR. Step 5 - as far as reasonably possible, take an inclusive approach to planning change, encouraging those staff that are likely to be affected by the change to contribute their ideas before the proposals are finalised. Individuals who are significantly affected by the change, particularly those whose posts are likely to be redundant, must be advised of the proposals at this stage and should not hear of it for the first time when the consultation paper is published. Step 6 – draft the consultation paper detailing the proposals (see Appendix B for template) clearly identifying the business reasons for the change and the success criteria against which the change will be measured at a later date.


Step 7 – compile a consultation timetable and draft implementation plan1 . Step 8 – present consultation document and Equalities Impact Assessment to the SMT (or where required to the Board), for approval; Step 9 – following approval by the SMT (or Board), the responsible manager will convene a joint confidential meeting of UNISON and staff representatives and senior management representatives. The purpose of the meeting is for an appropriate manager to outline the proposed structure, the number and description of staff affected and to discuss the timetable for consultation. Step 10 – meet with staff as appropriate to discuss the consultation paper. This will include group and/or individuals meetings. Staff have the right to be accompanied to these meetings by UNISON and staff representatives or other companions. Step 11 – publish consultation paper, consultation timetable and draft implementation plan to all staff2 likely to be affected by the change, UNISON and staff representatives. Place on the intranet so that all staff are aware and have the opportunity to comment. Step 12 – the responsible manager, advised by HR, will write to those staff who are personally affected by the proposed change outlining how the change specifically affects them and any options that apply to them (e.g. redundancy, redeployment etc). Where redundancy is a possible outcome of the change proposal, managers must include the information as specified in section 7 of this policy. In addition HR will be required to follow the steps laid out in section 5.5.2 below. Step 13 – set up a mailbox for staff to submit their consultation comments. Staff may also feed in their consultation comments through their UNISON and staff representatives, line manager or Human Resources. Step 14 - when consultation ends, all comments made will be collated and reviewed by the manager/s. All comments will be responded to and the comments and responses will be made available for staff to view on the intranet. Any personal data will be anonymised. Managers will respond directly to individuals who have raised comments through consultation that are regarded as personal to them and therefore confidential. Step 15 – the final document detailing the changes to be made, taking into account any amendments approved following consultation will be sent to SMT to sign off. Step 16 - once signed off by SMT, and shown to the UNISON and staff representatives, the final document will be published.

1 The implementation plan can only be in draft as the changes are only proposals at this stage and may be amended through consultation.

2 It is important that the process is transparent and well communicated; therefore a wider circulation may be agreed as required.


Step 17 – the responsible manager will meet all those staff who are personally affected by the change to inform them of the finalised plans for change. The individual will be entitled to representation at this meeting by a staff representative. These meetings should be confirmed in writing to the individual who will then have 10 working days to submit an appeal. Reference should be made to section 11 of this policy for the grounds of appeal. Step 18 – publish the final implementation plan.

5.5.2 Where redundancy is a possible outcome, the Institute is required to take important audit steps which HR will implement as follows:-

a) all proposals for redundancies must be approved by the SMT; b) such approvals may be reviewed by the Institute’s legal advisors as

required; c) the levels of payments should be calculated in line with either

statutory or contractual requirements as appropriate; d) The details of any proposed redundancies will be submitted to the

Audit Committee for approval. e) the Arms Length Body (ALB) HR Governance and Assurance

Committee (GAC) should be notified of any proposed redundancies and the actions being taken to avoid them (e.g. redeployment). The Institute must submit the details of any redundancies that will exceed £100,000 (capitalised costs), to the ALB HR Governance and Assurance Committee for approval. No notice should be given to individuals before this approval has been given.

6. Implementation (where redundancy is NOT an outcome) 6.1 Not all organisational change will result in posts being made

redundant. 6.2 At the end of consultation, once the comments have been responded

to and final proposal published, the manager can commence implementation. An amended implementation plan and timetable should be circulated to all affected staff.

6.3 The plan should identify the specific tasks needed to effect the change,

when they are likely to occur and who has responsibility for them. The plan must also clearly state the desired outcomes of the change and how these will be monitored and evaluated for success. The monitoring, review and evaluation will be undertaken by the manager of the area where the change occurred, six months after the change


has been implemented and the outcomes will be communicated to the affected staff.

6.4 Even where redundancy is not an outcome, it is good practice for the

manager to meet with those individuals who are directly affected by the change and to follow this up in writing, detailing the changes that are to be implemented and informing individuals of their right of appeal.

7. Implementation (where redundancy IS a possible outcome) 7.1 General 7.1.1 The following sections detail how the Institute will manage change that

may result in posts being made redundant. 7.1.2 Redundancy is a complex process and organisations are governed by

specific statutory duties. The Institute is committed to avoiding compulsory redundancies wherever possible. Where redundancies are unavoidable, the Institute will seek to mitigate the impact on staff affected and support them fully through the process.

7.1.3 It is important to note that it is the post that is redundant and that

individuals only become redundant when there is no other suitable alternative work available for them to do. Therefore it is possible for a post to be redundant but for the post holder to be retained in the organisation in a suitable alternative post and thereby avoid their contract of employment being terminated by reason of redundancy.

7.1.4 The terms and conditions for redundancy payments are detailed in

section 16 of Agenda for Change Terms and Conditions of Service (October 2006) http://www.nhsemployers.org/pay-conditions/pay-conditions-1451.cfm

7.1.5 All proposed redundancies will be discussed and agreed by the

Associate Director of Finance and the Associate Director of Human Resources before being submitted to the SMT for final approval.

7.2 Definition 7.2.1 Redundancy arises when employees are dismissed in the following

circumstances:

i) Where the employer has ceased, or intends to cease, to carry on the business for the purposes of which the employee was employed; or where the employer has ceased, or intends to cease, to carry on the business in the place where the employee was so employed; or

ii) Where the requirements of the business for the employees to carry out work of a particular kind, in the place where they were so

http://www.nhsemployers.org/pay-conditions/pay-conditions-1451.cfm



employed, have ceased or diminished or are expected to cease or diminish.

7.2.2 At Risk i) The term “at risk” refers to those individuals who are at risk of their

contract of employment being terminated by reason of redundancy. ii) Individuals who automatically slot-in to the new structure will not be

regarded as being at risk. ii) Individuals who have to compete for a post in the new structure or

look for redeployment opportunities elsewhere in the Institute or wider NHS will be regarded as being at risk.

7.3 The process of implementation 7.3.1 At the end of consultation, once the comments have been responded

to and final proposal has been published, the manager can commence implementation.

7.3.2 An amended implementation plan and timetable should be published.

By this point in the process the manager will have clearly identified which posts are to be redundant and the individuals who are risk of redundancy and will have discussed the reasons for it and the possible options for slotting in3, redeployment or redundancy with the existing post holders and their representatives.

7.3.3 To ensure that staff affected by the change have the priority for posts

in the new structure, a vacancy management process will be put into operation (see section 8). Managers may not commence recruiting to the posts in the new structure until the process of automatic slotting-in, competitive slotting-in and preferential interviews has been completed4.

7.3.4 The flow chart in appendix C shows the process for implementing the

new structure.

3 Slotting-in is discussed in section 7.7 & 7.8 4 In exceptional circumstances where it can be demonstrated that none of the affected staff

would be eligible for a post in the new structure or likely to obtain it through a preferential interview. In this case it may be possible to advertise this post more widely to the Institute or externally. This must be discussed and agreed with the AD of HR.


7.3.5 Those staff affected by the change and their representatives, will be

asked to meet formally with the manager in charge of the change. At this meeting the manager will inform the individual of the following information:-

• whether the individual’s post is to be made redundant or not; • if the individual’s post is to be made redundant that he/she may be at

risk of their contract being terminated by reason of redundancy if suitable alternative employment is not identified for them within a 28 day redeployment period;

• whether posts have been ring-fenced for them as suitable alternative employment and whether they will automatically or competitively slot into these posts;

• how the Institute intends to support the individual throughout the change (i.e. by identifying suitable alternative posts, offering counselling, interview skills training etc).

• of the method used to select the employees who are to be in the “pool of affected staff” and who may consequently be at risk of redundancy;

• of their right of appeal as outlined in section 11 7.4 Assimilation to the new structure 7.4.1 Staff affected by the change will, as far as possible, be assimilated into

the new structure either by a process of automatic slotting-in or competitive slotting- in. All posts in the new structure will be ring-fenced initially until automatic slotting-in, competitive slotting-in and preferential interviews for at risk staff have been completed.

7.4.2 Those individuals who do not either have the right to automatically slot-

in, or the skills and knowledge to compete for the remaining posts, will be given the opportunity, to apply for any new posts in the structure that have not either been automatically or competitively slotted-in to.

7.4.3 If following the processes to appoint to the new structure described

above, an individual remains without a post, they will be regarded as being at risk.


7.5 The order for filling posts 7.5.1 Once the 10 day appeal period has passed or any submitted appeals

have been dealt with, the following order for filling posts will be adhered to and applied at each level of the structure:-

a) Automatic slotting-in b) Competitive slotting-in to ring-fenced posts; c) Preferential Interviews for any other posts in the Institute for at risk

staff; d) Newly created positions and vacant posts will then be advertised and

applications will be sought from all staff. e) External advertising of remaining unfilled posts. 7.6 Automatic slotting-in 7.6.1 Automatic slotting-in will take place first and will apply where the posts

in the new structure are substantially5 the same (in terms of number, range and level of responsibilities) as the existing post, and where there are the same number of (or fewer) posts available as there are affected staff. A determination as to whether the new post is substantially the same as the redundant post should be undertaken by the line manager through a comparative assessment of the job descriptions and person specification, and discussion and advice from the Associate Director of HR.

7.6.2 Staff in this situation will not be required to apply for or undergo any

selection process for the new post and will receive a letter confirming that they have been automatically slotted-in to the new post.

7.6.3 Staff will not be entitled to refuse to slot-in to these posts unless they

can demonstrate that the post is not substantially the same as the one that they were in previously. Where individuals feel that the post is not substantially the same, they should raise this through the appeal process – see section 11. Those staff that lose their case at appeal and continue to refuse to slot-in will be deemed to have refused suitable alternative employment and will not be eligible to receive a redundancy payment in the event they do not secure alternative employment. Those who win their appeal will be placed in the pool of at risk staff.

5 HR will be responsible for evaluating the posts to establish whether they are substantially the same in these circumstances.


7.7 Competitive slotting-in 7.7.1 Competitive slotting-in will take place where the posts in the new

structure are substantially the same (in terms of number, range and level of responsibilities) as the existing posts, and where there are more affected staff who meet the requirements of the new posts, than there are new posts available. A determination as to whether the new post is substantially the same as the redundant post should be undertaken by the line manager through a comparative assessment of the job descriptions and person specification, and discussion and advice from the Associate Director of HR.

7.7.2 These staff will be required to complete and submit an application form

and be interviewed for the post(s). 7.7.3 Employees will be notified of the outcome of the competitive interview

within 5 working days of the interview. 7.7.4 Those staff who are appointed through this process will receive a

confirmation of their appointment and the terms of the new post. Those staff who are not appointed as a result of this process will be regarded as being “at risk”.

7.7.5 If an individual feels that the post, for which they are being asked to

compete, does not represent suitable alternative employment, they may raise this through the appeal process – see section 11.

7.7.6 Employees who lose their appeal and still decide not to compete for a

ring fenced post through the competitive slotting-in process may be deemed to have refused suitable alternative employment and may not be eligible to receive a redundancy payment in the event that alternative employment is not secured and their employment is terminated. In these circumstances the employee will still be eligible to apply for internally advertised posts until the end of their redeployment period of 20 working days but a preferential interview will not be given.

7.7.7 Employees who compete for a post through the competitive slotting in

process and then reject an offer following an interview may be deemed to have refused suitable alternative employment and may not be eligible to receive a redundancy payment in the event that alternative employment is not secured and their employment is terminated. As in section 7.7.6 above, an employee in these circumstances will still be eligible to apply for internally advertised posts until the end of their redeployment period of 20 working days but preferential interviews will not be given.


7.8 Preferential Interviews 7.8.1 After automatic and competitive slotting-in has taken place, there may

be new/amended posts in the structure that remain vacant. Those staff who are at risk may have the skills and knowledge to undertake the duties of these new posts. Where such posts represent suitable alternative employment, these individuals will be given a preferential interview without having to compete against other internal candidates (who are not at risk) or external candidates. If successful the individual will receive an appointment letter and provided they complete a satisfactory probation period, will no longer be deemed to be at risk. If the individual is not appointed or fails their probation they will return to being at risk and the search for suitable alternative employment will commence.

7.8.2 Once automatic slotting-in, competitive slotting-in and preferential

interviews have been completed for the new structure, if any vacant posts remain these can now be advertised to the rest of the Institute and/or externally in the normal way.

7.8.3 All interviews will be conducted in line with the Institute’s Recruitment

and Selection policy and procedure. 7.9 Confirmation of “at risk” status 7.9.1 Once automatic slotting-in, competitive slotting-in and preferential

interviews have been completed for the new structure, if any staff remain without a post in the new structure they will considered to be formally at risk. These individuals will receive confirmation in writing that their employment with the Institute is deemed to be at risk and that their contract may terminate by reason of redundancy unless suitable alternative employment is found during the redeployment period (28 calendar days).

7.10 Redeployment into Suitable Alternative Posts 7.10.1 Redeployment means the transferring of an employee into a post that

is deemed to be suitable alternative employment. 7.10.2 The redeployment period will be 20 working days. 7.10.3 Redeployment will normally be confined to posts at the same grade or

one grade below, and pay protection, where appropriate, will apply in line with the Institute’s protection policy.

7.10.4 The Institute will assist at risk staff with seeking suitable alternative

employment. Posts will be sought within the Institute. In addition, the Institute may be notified of vacancies in other NHS organisations.


7.10.5 At risk staff will be informed of these vacancies via the all staff email system or in writing. In the Institute’s endeavours to secure suitable alternative employment within the NHS, those staff who are at risk will be requested to register on the NHS recruitment website.

7.10.6 Staff who are at risk will be notified of potentially suitable alternative

vacancies that arise during their redeployment period. Such staff will be given priority consideration6 for these posts.

7.10.7 Staff who decide not to apply for a vacancy that is brought to their

attention in writing, should specify their reasons for doing so, in writing, within 5 working days of being notified. Employees who decide to reject an offer of employment should do so, in writing, to the Associate Director - HR within 5 working days of receipt of the offer.

7.10.8 If an affected member of staff fails to apply for, or accept, a post that

has been considered as suitable, they may be deemed to have refused suitable alternative employment and the employee may not be eligible to receive a redundancy payment in the event that alternative employment is not secured and their employment is terminated. However, the employee will be eligible to apply for other internally advertised posts until the end of their redeployment period and priority consideration will be given where appropriate and where it does not disadvantage some else who may be at risk.

7.10.9 If by the end of the redeployment period suitable alternative

employment has not been secured, and/or an employee has reasonably refused applying for, or accepting a suitable post (including posts in other NHS organisations), the employee’s contract will be terminated on the grounds of redundancy unless a suitable secondment has been agreed. Redundancy and/or retirement benefits (as appropriate) will be paid (see section 7.20 for information).

7.10.10 Following redundancy from the Institute, if an employee accepts NHS

employment within 4 weeks of their last day of service, and it is considered that such employment is a suitable alternative post, the employee will be required to repay the redundancy benefits received from the Institute.

6 The Institute can only offer priority consideration to internal vacancies as it has no jurisdiction over vacancies that occur more widely in the NHS and the individual must apply and compete for external posts in the normal way.


7.11 Retraining 7.11.1 The Institute will ensure that staff receive appropriate and reasonable7

training to enable them to fulfil their duties in a post that they have been redeployed to.

7.11.2 Retraining may be required for the following reasons:

• The employee mainly uses their existing skills in the new job but has to acquire reasonable additional skills and/or operate different systems of work;

• The employee has had general occupational or professional training

for the new kind of work but needs to acquire more specialised knowledge and new skills.

7.12 Trial periods 7.12.1 Staff who are redeployed will undertake a trial period in the new post

where there is a new contract issued or a change to the existing employment contract. This change could be:

• The capacity in which the employee is employed; • The place in which the employee is employed • Any variation to any other terms of employment

7.12.2 The trial period shall be for a period of 12 weeks. This can be extended

by written agreement between the employee and the Institute. The written agreement will specify the date on which the trial period is to end and the terms and conditions that will apply.

7.12.3 At the end of the trial period the post may be agreed as being suitable

alternative employment and the new post will be confirmed as substantive. If the post is not considered suitable by the employee or the Institute an agreement may be reached to seek suitable alternative employment over an extended redeployment period. Where neither of these options is deemed appropriate, or when alternative suitable employment can not be found, the employee will be dismissed as being redundant and they will be entitled to any redundancy payment due to them.

7 Reasonable means where the cost of the training and the time required to retrain are reasonable in all the circumstances. The manager in charge of the change should discuss with the AD-HR about what would should be considered reasonable in these circumstances.


7.13 Protection of pay and terms and conditions 7.13.1 Staff who are at risk of redundancy, who are redeployed to a post that

is one pay band lower than their previous post, will be entitled to receive protection of their pay and terms and conditions in line with the Institute’s Protection of Pay Policy.

7.14 Staff support and assistance 7.14.1 All reasonable means of support and advice will be provided to

affected staff. The Human Resources department will provide information regarding redundancy and redeployment, counselling services and training available. In addition the following support will be provided where required:

• Counselling and job search support

The Institute has contracted external employee support providers to provide confidential counselling, advice and support. They also have specialists that can assist employees in preparing CVs, completing application forms, interview techniques and career counselling. Employees will be given reasonable time-off to receive such support (up to a maximum of 3 days in total). Time off will also be given for individuals to attend interviews. Time-off must be agreed with the appropriate line manager. Line managers may also be able to offer one to one advice and support on career progression.

• UNISON and Staff representatives

UNISON and staff representatives can provide staff members with confidential informal information and support, and UNISON members can seek formal advice from their stewards. Employees who wish to become members of a trade union or professional organisation are encouraged to do so. The Human Resources department, UNISON Executive or elected staff representatives will be able to give information on how this can be done.

• Ongoing management support

Line managers and members of the management team are available for staff to seek ongoing confidential information, advice and support. Employees are encouraged to speak to their managers or Human Resources if they have any concerns or queries.

7.15 Redundancy - Terminating the Employment Contract 7.15.1 At the end of a redeployment period and if no alternative employment

has been secured, the member of staff will be seen individually by their Director and a member of the Human Resources department, in the presence of their representative or companion (if they wish), to be informed that they are to be dismissed by reason of redundancy.


7.15.2 The dismissal will be confirmed in writing and will include the following information:

• the proposed date of termination • the notice period details (or payment in lieu of notice) • the redundancy benefits and calculations • details of outstanding annual leave. • notification of the rights of appeal.

7.16 Notice and Annual Leave 7.16.1 Staff who are notified that their contract of employment will terminate

by reason of redundancy will normally be expected to work their notice and take any outstanding leave during this period. It may however be possible for employees to be released earlier where it is in the best interests of both the Institute and the employee.

7.17 Redundancy: eligibility and benefits 7.17.1 Eligibility for redundancy and redundancy entitlements are set out in

the current provision of Amendments to Section 16: Redundancy Pay of the Agenda for Change: NHS Terms and Conditions of Service Handbook and ‘Retirement and Redundancy – the right approach’ guidance. These can be found at:

• http://www.nhsemployers.org/pay-conditions/pay-conditions-1451.cfm (the relevant document under this link is called “the revised section

16”). • http://www.nhsemployers.org/pay-conditions/pay-conditions-1715.cfm

(the relevant document under this link is “briefing”) 8. Vacancy management 8.1 Immediately prior to and/or during periods of organisational change

and where post are at risk of redundancy, the normal recruitment processes are frozen8, and the vacancy management controls set out below are put in place to minimise the need for redundancies as far as reasonably possible.

8 All posts will be frozen unless it can be clearly demonstrated that there is no possibility that post to be advertised would be regarded as a possible redeployment opportunity for someone at risk. The Associate Director of Human Resources will be responsible for agreeing to “exceptions” to the vacancy freeze status during organisational change.




8.2 The following principles will guide how NICE will manage vacancies that arise, and determine whether those vacancies should be recruited to:

• The need to maintain business continuity throughout the management

of organisational change • The need to protect employment security, as far as is reasonably

possible, by minimising the need for redundancies • Promotion of equality of opportunity to all staff within NICE, and

adherence to relevant legislation • Retain, as far as possible, the skills experience and commitment of

existing staff; • Promotion of partnership working between UNISON, elected Staff

Representatives, and the Senior Management Team to ensure decisions are transparent within the organisation.

8.3 The following steps will be taken when a vacancy arises immediately prior to and/or during a period of organisational change:

• the vacant post is identified to the Associate Director – HR by the line manager.

• The vacant post’s line manager will be asked to set out any business continuity needs for filling the post and the implications of holding the post vacant for a period of time.

• The Associate Director – HR will consider the post and advise whether the recruitment should proceed, or whether the vacancy control methods set out below should apply

• The decisions of the Associate Director – HR will be reviewed and confirmed by the Business Planning and Resources Director.

8.4 For each vacancy that arises immediately prior to and/or during a

period of organisational change, the Associate Director – HR will consider how the vacancy should be managed. It may be that a particular vacancy may be deemed as suitable alternative employment for placement of an employee who may be declared as being at risk, following a formal consultation.

8.5 The Associate Director – HR will then advise the recruiting manager of

the options available to temporarily cover the duties of the post until it can be advertised in line with this process. The options are as follows:

• Assigning duties to other staff member(s) • Advertising the post as a temporary “acting up” role for an existing

employee • Engaging temporary workers through employment agencies • Engaging interim consultants on a self-employed contracting basis • Seconding existing staff to cover the role.


8.6 The final decision about which option to take will be made in consultation with the recruiting manager and the Associate Director of the affected team.

8.7 A flow diagram of the vacancy management process is attached as

appendix D 8.8 Where the line manager and the Associate Director – HR can not

agree about how to proceed with the vacancy management, and the matter can not be resolved by the relevant Director and the Business Planning and Resources Director, this will be referred to the Chief Executive for a decision. It is hoped that this process will only be needed in exceptional circumstances as all parties are expected to work within the principles set out above.

9. Transfer of staff into and out of the Institute

9.1 There are sometimes circumstances which arise that will involve the transfer of functions and staff from an external organisation into the Institute, or to an external organisation from the Institute. In this event, the transfer will be dealt with under this policy and procedure provided that it remains in accordance with the Transfer of Undertakings (Protection of Employment) Regulations 1981) (http://www.berr.gov.uk/files/file20761.pdf).

10. Relocation of work base 10.1 Organisational change can result in the Institute no longer requiring an

employee or group of employees to carry out their work at their existing work location. This can be as a result of relocating the work base of an individual, department or entire organisation to another location. The requirement for staff to move work base will be dependent primarily upon the distance to be moved and an employee’s individual personal circumstances.

10.2 Relocation expenses will be paid to contribute financially to the moving

and/or additional travel expenses incurred by employees when staff are required by the Institute to change their main office base or primary residence. Further details may be found in the Institute’s Relocation Policy (hyperlink below). http://niceintranet/pages/working_at_nice/hr/Policies/Relocation_Policy-Oct_07.pdf

http://www.berr.gov.uk/files/file20761.pdf

http://niceintranet/pages/working_at_nice/hr/Policies/Relocation_Policy-Oct_07.pdf

http://niceintranet/pages/working_at_nice/hr/Policies/Relocation_Policy-Oct_07.pdf


11 . Appeals 11.1 Employees have the right to appeal. This right may be instigated at a

number of stages and: • Misapplication of this policy and procedure, • Decisions relating to selection for automatic or competitive slotting-in,

redeployment or redundancy • Decisions relating to ring fenced posts (inclusion or exclusion from

ring-fencing). • Non selection for a post following application or interview. • Non eligibility of redundancy benefits because a decision has been

reached that an employee has unreasonably refused suitable alternative employment.

• Dismissal for reasons of redundancy

11.2 Appeals should be made in writing to HR within 10 days of the issue (against which the individual wishes to appeal) arising. The appeal will be conducted in accordance with the Institute’s Appeals Procedure.

12. Monitoring and Review 12.1 The Associate Director HR will be responsible for ensuring this policy is

properly administered and that the Institute complies with its Equality and Diversity Policy and Race Equality Scheme.

12.2 The use of this procedure and the outcome of any proposals for

change will be monitored and evaluated under the criteria of age, gender, ethnicity, disability, and reason for application. The results of the monitoring and evaluations will be published in annual equality reports.

Signed: Date: On behalf of the National Institute for Health and Clinical Excellence Signed: Date: On behalf of NICE UNISON Branch Signed: Date: On behalf of NICE Staff Representatives Approved by the NICE HR Sub Committee Date:


Appendix A: Definitions Acting Up Acting up is where there is a temporary change in

duties and responsibilities equivalent to a higher pay band.

Affected staff Affected staff can fall into three groups:

1. those who are formally identified as at risk of redundancy at the beginning of the consultation period and/or;

2. those identified as at risk of redundancy following unsuccessful application to competitive slotting-in or application for a vacant post (for which have not been ring fenced) or;

3. those whose posts have been identified as subject to change (e.g. team/line manager/directorate change or changes to job description).

At risk This term is used to describe employees who have

been identified as being at risk of redundancy (see definition of redundancy below).

Automatic slotting-in An employee is automatically slotted-in to a post

when there is a post in the new structure of which the number, range and level of responsibilities and required skills are the same or substantially similar to their existing post and there are enough posts for the number of staff in that post.

Capitalised Costs Capitalised costs are the total costs to the

organisation of the redundancy or early retirement including employers contribution.

Competitive slotting-in Competitive slotting-in takes place when there is a

post in the new structure that is the same or substantially similar as an employee’s existing number, range and level of responsibilities and required skills, but there are more staff that currently do that job than there are posts available. The employees in that job would then be required to compete for the available post(s) by submitting an application form and attending an interview.

GAC The GAC or Governance and Assurance

Committee is a Committee set up and run by the Department of Health. The Committee is responsible for monitoring redundancies in Special Health Authorities and all redundancies that are likely to cost


more than £100k must be approved in advance by the GAC.

Equality Impact assessments (EqIA) are a way of examining the main functions and

policies of an organisation to see whether they have the potential to affect people differently. Their purpose is to identify and address real or potential inequalities resulting from policy and practice development. EqIA should cover all of the six strands of diversity and ensure that all receive equitable attention.

Preferential Interview affected staff at risk of redundancy who apply for

available posts in the structure will receive priority consideration for posts at the same pay band or one band lower. This means that they only need demonstrate at interview that they fulfil the essential criteria for a post (as outlined in the person specification) to be offered the post. In the event of more than one person fulfilling these criteria, the best candidate will be offered the post.

Redeployment period A period of at least 28 days during which suitable

alternative employment is sought. Employees can also use this time to seek alternative employment externally.

Redundancy The legal definition of redundancy is when

employees are dismissed in the following circumstances: • Where the employer has ceased, or intends to

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

• Where the requirements of the business for employees to carry out work of a particular kind, in the place where they were so employed, have ceased or diminished or are expecting to cease to diminish.

Ring-fenced Posts that have been identified in the new structure as

being suitable for one or more employees will be ‘ring fenced’ for those employees. This means that no other employee will be permitted to apply for those posts until the affected employees have had the opportunity to apply for and be considered for the post(s).


Suitable Alternative Suitable alternative employment in this policy

means Employment an offer of redeployment to a post which is at the

same pay band or one pay band lower (irrespective of any salary protection that may apply) as the post occupied before redeployment. This offer will be made if the employee has the qualifications or experience and ability to perform satisfactorily with reasonable training, if appropriate; and with similar terms and conditions of employment.

Reasonable refusal Examples of a reasonable refusal of alternative

employment may include (but are not limited to): the post attracts a significant drop in pay and is not eligible for pay protection; the employee feels that they do not have the required qualifications or ability to perform the role satisfactorily even with reasonable training; the location is not suitable in that it will require significant changes to travel arrangements; or the terms and conditions offered are substantially different to those that would have existed in their current roles.

TUPE TUPE stands for The Transfer of Undertakings

(Protection of Employment) Regulations 1981 and

2006. TUPE regulations intend to safeguard an

individual’s interests if they are working in an

undertaking which is transferred from one employer to

another.


APPENDIX B

Template for a Consultation Paper Introduction

State background and context of the proposed change.

Current position

State how the service is provided currently.

Drivers for Change

Detail what is driving this change and what it will achieve.

Proposed Changes

Outline the proposed changes. Include a copy of the old and new structure charts to illustrate how posts are affected.

Impact on Posts Include specific information on how the change impacts on the post and the reasons for it. This section will clearly identify those posts that are new, redeployed, changed or likely to be redundant. Where redundancy is a possible outcome of the change, the following information will be supplied in this section:-

• The number and description of the posts at risk of redundancy; • The proposed method of selecting employees who may be at risk of

redundancy; • The number and description of any posts that may be available as

suitable alternative employment; • The proposed method of carrying out redeployment and

redundancies (in line with this policy)

Support for Staff

Detail the support on offer to staff (e.g. individual meetings to discuss redeployment opportunities, counselling, interview skills development etc)

Risk Assessment

Assess the risk to the Institute of doing and not doing the proposed change.

Financial Issues

Detail the financial implications of implementing and not implementing the proposed change.

Consultation Timetable

Detail the timescales for the consultation.

Implementation Plan

Outline the implementation plan in draft. This plan should be updated post-consultation to include any amendments.

Evaluation Plan Detail how the change will be monitored and how its effectiveness will be evaluated.

APPENDIX C

FLOW DIAGRAM – IMPLEMENTING CHANGE IN A NEW STRUCTURE (where individuals may be at risk by reason of their post being redundant)


Assimilation

Automatic “slotting in” Competitive slotting in

Confirmation

Issued

Interview

Successful Unsuccessful

Successful

Trial Period

28 day Redeployment Period

Commences/Continues

Unsuccessful Successful

Unsuccessful

Contract Terminated

by Reason of

Redundancy

Trial Period

Unsuccessful Successful

Confirmation

Issued

Preferential Interviews in New

Structure for “at risk” Staff

Successful

Trial Period

Successful Unsuccessful

Confirmation

Issued

Unsuccessful

Confirmation

Issued

Staff placed “at

risk”

Implementing Change

APPENDIX DVacancy Management Process

Approved

No

Application to recruit to the vacancy received by AD -

HR

AD – HR to discuss whether post needs to be recruited

immediately

Could the vacancy provide alternative employment for

employees at risk?

Discussed between AD – HR and manager.

Recommendation to fill post temporarily

Vacancy is put on hold and referred to

Directors responsible for new

structure.

Discussed between AD– HR and

recommendation to the Directors.

Vacant post is brought to attention

of at risk staff, following

consultation on the new organisational

structure

Advertise internally

Vacancy is filled temporarily

Internal appointment made?

External advertising (only for posts that have not been filled internally)

Vacancy filled permanently

Yes

Yes

Approved

No

Yes

No

Temporary appointment made?

No


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