Restructures & Redundancies in Schools 1

Overview of session Why might a restructure be necessary What can be changed during a restructure Initial considerations Consultations Restructure process Avoiding redundancies Duties on the employer Summary The aim will be to take through each of these restructure and redundancy related issues 2

Why might a staffing restructure be necessary? To address a budget deficit Existing staff structure does not meet the schools needs (e.g. following a curriculum change, redistribution of leadership responsibilities, introduction of new administrative arrangements or following a move into a MAT.) To address either a shortfall or surplus in capacity in a particular area A combination of the above There are a number of potential drivers behind a decision to look at a staffing restructure and in general terms the majority of restructures will be driven by one or more of these reasons A projected deficit in the school’s budget that without tasking steps to reduce staffing costs will escalate. A need to make changes to the staffing complement at the school. This may include redefining the scope of existing posts or the creation of completely new posts with new areas of responsibility and duties attached. This could go hand in hand with the need to look at employing staff with a entirely new skill set linked to a change of designation of the school and greater levels of shared resources across a group of schools. It might simply be a case of having too many or insufficient posts assigned to particular areas of work within the school. 3

What areas of a contract can be changed as part of a restructure? The whole contract The hours of employment The timetabling of hours Specific duties or responsibilities The grade or allowances (e.g. TLR payments/Leadership posts*) (N.B. salary safeguarding would apply in most cases where a teacher’s salary goes down as a result of a restructure – See STPCD Part 5, para. 32.1 – 38.10 ) Undertaking a staffing restructure may or may be about making whole sale changes to posts. It could simply mean changing one aspect of a post or group of posts. The specific changes to contracts of employment a restructure might introduce may be any of the above and range form changes to every part of the contract to changes affecting certain areas The extent of changes made to a post will determine whether it remains suitable for the existing post holder and or is seen by them as a position they would wish to continue to hold. For some staff whose post is affected by a restructure even relatively minor changes could have a significant impact on whether they would wish to continue – reduced hours and pay may make the post unattractive financially Whatever changes are proposed it’s crucial that during consultations these are made very clear to staff who are likely to be affected. Just one point to bear in mind if undertaking a restructure for financial reasons and removal of teachers allowances are proposed statutory salary safeguarding applies. 4

Initial considerations A Business Case - what are the reasons for the restructure & what evidence is there to show the need for change? How best can the restructure be achieved? Which groups of staff will be affected? (teachers / support staff) Could the restructure process lead to staff redundancies? What procedures should be followed? (review school policies) What is the likely time line? What information will I need to provide during consultations? Be clear about why a staffing restructure is necessary. What evidence exists to support the need for change. Which groups of staff will be directly affected. How soon can they be informed and meaningful consultations commence. Could the proposals lead to staff redundancies – if so how will staff be selected. Staff not directly affected should also be made aware. They may need to offer support to staff who are. Check policies / processes / legislation needs to be followed involve your HR adviser Regular communications with staff. Provide a clear time line linked to the steps in the process. Do changes need formal process or are contracts flexible to allow changes 5

Putting together a Business Case Background and rationale – what will be gained Proposals in terms of numbers and type of posts affected How consultations will be conducted, with whom and for how long Measures to avoid compulsory redundancy (remember help & support is always available from your HR Adviser.) When first announcing a proposed re-restructure the rationale or Business Case supporting the proposal should also be ready to be shared. Staff will need to be made aware of why change is needed and the status quo is not realistic. Business case should give an indication of the number and type of posts likely to be affected. From the outset affected staff should be aware of who they can speak to and where they can obtain more information. Staff will feel more vulnerable if they do not have the full picture. How the process will be carried out, by who and in what capacity. Governors, Headteacher, Business Manager, HR Adviser. What measures will be taken to avoid the risk of compulsory redundancy. 6

Potential Redundancies - Duty to consult Large scale redundancies of 20 or more employees within a 90- day period or less consultations must take place with employee reps. and the Secretary of State must be informed, and, Consultations must commence at 30 days prior to the first dismissal taking place, Undertake fair consultation procedure with a view to reaching agreement i.e. not enough just to inform what will happen. Redundancy is a dismissal and dismissals mean the termination of an employment contract. Changes to terms and conditions of employment could result in dismissal (new contract not reasonable alternative employment) Initial process review the school’s agreed policy/s; HT (supported by Chair of Governors or SLT) draft proposal to include The reasons why change is needed How the staff structure looks both before and after The number and type of posts likely to be affected Estimated time frames Proposals for filling posts in the new structure Governors agree, in principle, any proposal and the need to proceed with consultations. Not a party to any details at tis stage. 7

What information should be provided? Consultations must be meaningful and should cover; Why a restructure is necessary The number and type of posts affected The proposed method of selection/appointment Whether redundancies are likely (which staff group and numbers) The process that will be followed for staff who are displaced How any redundancy payments will be calculated What support will be offered to affected employees seeking to secure alternative employment 8

Ensuring consultations are meaningful and fair? Entering into consultations when proposals are at a formative stage Be genuine in approach to consultations having an open mind and preparedness to be persuaded Provide adequate information Ensure effective communications both verbal and written Provide adequate time for staff /staff reps. to respond Give full and proper consideration to responses received Do not consult on the basis of ‘It’s a done deal’. Be prepared to listen – staff may well have valuable contributions they can make. Information should provided sufficient detail to enable staff to understand what is proposed in respect of their area of work and the likely impact on them should the proposals be confirmed. The period of consultations should be sufficient to allow both staff and unions the opportunity to receive, consider and respond to the proposals. Once consultations close give due consideration to all comments, suggestions and concerns and respond to them explaining whether they have prompted a change to the proposals or not and why. 9

Steps prior to consultations Be clear on why a formal restructure process is necessary Review the school’s agreed policy/s HT (supported by Chair of Governors or SLT) draft proposal Governors agree, in principle, the need to proceed Consideration should be given to whether there is sufficient flexibility within the terms of an existing contract to make changes that will address the issue through discussion with the employee and without the need for a formal restructure process. The policies to be reviewed will include any existing restructure process, redundancy policy and criteria. It may also include a review of the staff pay policy incorporating the school staffing structure. Model’s available from your HR advisers. Draft proposals should include; The reasons why change is needed How the staff structure looks both before and after The number and type of posts likely to be affected Estimated time frames Proposals for filling posts in the new structure Draft proposals taken to governors who should confirm the need to commence consultations. 10

Steps in a restructure process Initial considerations and preparation of a Business case Consultations with staff and unions on proposals Respond to feedback following consultations and make any agreed adjustments to draft proposals Appoint staff into posts within new structure using agreed criteria (slot-ins, ring fenced interviews, scoring system based on agreed criteria open advertisements) Confirm appointments in writing – issue new contracts Inform unsuccessful staff they are at risk of redundancy Consultations must be meaningful (i.e. it’s nota done deal you have a genuine interest in what staff and unions may have to say and will give proper consideration to any suggestion made. Where suggestions cannot be supported reasons will be provided; Criteria on which all decisions will be made will be based on fair objective post related criteria. The aim of any restructure process must be to achieve not only the right number of posts in the right areas but the best possible complement of staff based on their qualifications, skills, knowledge, and experience. Depending on the circumstances appointing staff to posts in the new structure may take the form of; Slot-ins (where number of posts is equal to or less than the number of existing staff) Ring fenced recruitment or scoring system (where there are more staff currently employed than there area posts for them in the new structure) Open advertisement (where the skills needed to undertake new posts are not held by existing staff and external recruitment may be required. 11

Avoiding redundancy - measures to consider Ending temporary contracts Volunteers to reduce hours / job sharing Flexible / phased retirement Volunteers for early retirement / redundancy Redeployment (existing or other school) 12

Employees who fail to secure a post in the new structure Employees who do not secure a post following a restructure will be at risk of redundancy. As such they will need to be informed in writing that they are at risk of redundancy an be given the right to make representations and appeal. The right to be represented by a colleague or union rep at key stages in the process The right to receive notice (the longer of contractual or statutory) The right to receive redundancy pay (for continuous service 2years or longer) The right to be supported in finding suitable alternative employment 13

Main duties of an employer Achieve the best possible outcome for the school, Stick to the agreed plan and comply with relevant policies, Act equitably and reasonably making every effort to appoint staff into most suitable posts Avoid compulsory redundancies Ensuring regular, clear communication with all staff and unions 14

Why do you need to get it right? Results in you having the right staff in the right places doing the right jobs Getting it wrong can damage your reputation as a good employer and relationship with staff Restructures and redundancies are dealt with efficiently and with least possible disruption Minimises the risk of successful employment tribunal claims Staffing represents by far the greatest expenditure for schools and ensuring staff employed and deployed into roles that best meet the needs of children and the school is essential. If your school is to be successful. Putting to one side existing staffing and designing your ideal staffing structure in the first instance. Then start to work back to see what changes would be required to get from the current structure to your ideal staffing structure. Is the level of change realistic and affordable. Getting any restructure or redundancy process right avoids the potential for unnecessary time and expense being incurred as well as damaged reputation for the school and relations between managers and staff. Restructures which are properly managed can be undertaken without undue delay be implemented from the earliest possible date and be accepted by staff. Where the need for a restructuring has been properly explained to and consulted on with staff the less likely claims will be made and if made will be more easily defended. 15

Summary Gather relevant evidence and build a Business Case Don’t delay – start the consultation process as early as possible Including the rationale, decision making process and timetable Communicate regularly and clearly with staff Be consistent objective and fair Be sensitive in approach and maintain confidentiality Seek advice as required throughout the process 16