This policy is not intended to be comprehensive, but to act as a guide. If you have any questions about this policy, please speak to your manager in the first instance. This policy does not form part of your terms and conditions of employment and may be varied and/ or withdrawn at any time without notice.
Kelly is committed to protecting the employment security of employees by appropriate planning and will ensure (where possible), the planning and budget setting processes will take account of potential staffing implications to avoid the need for redundancies. There may be occasions when changes in demand, organisational, technological and/ or economic developments impact on staffing requirements.
This procedure outlines the approach to be adopted in cases of potential redundancy and shall be applied with due regard to legislative provisions relating to redundancy.
It is important that you read and understand this policy and follow the provisions contained within it. This policy applies to all permanent UK & Ireland employees, as well as those who are working for and/ or on behalf of Kelly. If you have any questions about the Kelly approach to managing redundancy please speak to your manager in the first instance.
A redundancy situation will generally arise in the following circumstances:
o The requirement for an employee to carry out work of a particular kind has ceased or diminished, or is expected to do so o The requirement for an employee to carry out work of a particular kind, in the place where they are employed, has ceased or diminished, or is expected to do so o Where the Company has ceased, or intends to cease to continue the business in the place where the employee is employed.
Please note that the above is not an exhausted list.
Kelly will take all reasonable steps to avoid and/ or minimise the need for redundancies by considering alternatives, wherever practical. This may include, but not restricted to:
o Offering suitable alternative work o Reducing contractor population o Placing restrictions on recruitment o Seeking applicants for voluntary redundancy
Authorisation to proceed The steps outlined within this procedure will only commence once a discussion and authorisation has been received from the Managing Director (MD), Human Resources (HD) and the affected department senior.
Statutory notification UK - Should Kelly intend to make 20 or more employees redundant in one place of work within a 90- day period – a collective redundancy approach will be applied and the HR department is obliged to notify the Department for Business, Innovation & Skills (BIS) using form HR1, (which can be downloaded from the Insolvency Service website).
BIS must receive the HR1 form at least:
o 30 days before the first redundancy where there are 20 to 99 proposed redundancies and before the individuals have received personal notice of termination o 45 days before the first redundancy where there are 100 or more proposed redundancies and before the individuals have received personal notice of termination.
Redundancy consultation In all cases of potential redundancy, formal consultation will take place with the individual(s) affected at the earliest opportunity.
The purpose of consultation is to seek ways of;
o Avoiding the redundancy situation o Reducing the number of dismissals, or o Mitigating the effects of the redundancies proposed.
Consultation must start in good time and at least;
o 30 days before the first redundancy where there are 20 to 99 proposed redundancies o 45 days before the first redundancy where there are 100 or more proposed redundancies.
Collective Consultation Kelly has a statutory duty to disclose in writing to the Trade Union (if applies) the following information concerning proposals for redundancy so that they can play a constructive part in the consultation process
o The reasons for the proposals o The numbers and descriptions of employees with the potential to be dismissed as redundant o The total number of employees of any description employed at the particular site/ office o The selection criteria which employees will be applied for redundancy o How the dismissals will be carried out, including the period over which the dismissals are to take effect o The method of calculating the amount of redundancy payments to those who are under threat of redundancy.
This information will be handed to the appropriate Trade Union representative.
Ireland - Collective redundancies arise where, during any period of 30 consecutive days, the employees being made redundant are:
o 5 employees where 21-49 are employed o 10 employees where 50-99 are employed o 10% of the employees where 100-299 are employed o 30 employees where 300 or more are employed
Under the Protection of Employment (Exceptional Collective Redundancies and Related Matters) Act 2007, a Redundancy Panel was set up in accordance with the partnership agreement Towards 2016. Some collective redundancies may be referred to the Panel to determine whether the redundancies were (or are being) carried out to replace the employees with workers on lower pay or other less favourable terms and conditions. These are known as exceptional collective redundancies. If the panel decides the redundancies were carried out for this reason, the employees concerned will be able to take action for unfair dismissal.
Where a potential redundancy situation has been identified (in addition to any collective consultation), a formal consultation will take place directly with the individuals affected.
Determining the redundancy pool
In a situation where there are many employees doing similar jobs and a headcount reduction exercise needs to take place, these employees will be placed in a redundancy ‘pool’.
In the event of a redundancy pool, a formal selection process will be undertaken to determine which employee(s) will be put at risk of redundancy.
The redundancy selection criteria will be determined in consultation with the trade union (where required). In all cases, the criteria will be non-discriminatory and applied consistently.
Kelly may request voluntary redundancy applications in compulsory redundancy situations and consider such applications in line with future business requirements. There is no obligation to accept a voluntary redundancy application.
Individual consultation meetings
The employee will be invited, in writing, to attend at least two individual consultation meetings, thus giving Kelly the opportunity to answer any questions raised within the first consultation meeting. The notice period for individual consultation meetings should be a minimum of 48 hours.
During the consultation process, the employee will be advised of the following;
o That they are at risk of redundancy o The reason for the redundancy situation arising o The rationale for their inclusion in any redundancy pool o The selection criteria and the reasons for their score (in redundancy pool situations).
The employee will be invited to put forward any suggestions as to how their redundancy could be avoided.
The right to be accompanied
All employees are entitled to be accompanied to any formal meetings by a trade union representative or a work colleague and it is important that this is made clear to the employee when inviting them to the meeting.
You may wish to consider allowing an employee to bring a different representative to the meeting if, for example, they have a disability which means that they need support from a family member and you should always organise professional support (for example a translator) where this is required. If the employee is a trade union representative, they may be accompanied by another a full-time trade union official.
The representative can act as a witness, ask questions, take notes during the proceedings, may put and sum up the employee’s case and may ask for adjournments to discuss issues with the employee, but they may not answer questions on the employee’s behalf or prevent you from explaining your case. If you believe that the employee’s representative is acting unreasonably, you should adjourn the meeting and seek guidance from HR.
The employee may ask to postpone the meeting to enable their chosen representative to attend. If this is the case, the Company may postpone the meeting for a period not normally exceeding 5 working days although in exceptional circumstances the Company may postpone the meeting for a longer period. If the representative is still unable to attend, the Company may ask the employee to choose an alternative to accompany them. There is no obligation on a person to act as a representative if they do not wish to do so. If the employee chooses not to be represented, confirm this with them at the start of the meeting.
A trade union representative who is not an employed official must belong to a recognised Trade Union and be certified to carry out the role by their Union. Ensure that their information is noted within the meeting minutes.
Suitable alternative work
Kelly will attempt to avoid a redundancy dismissal by offering the employee suitable alternative work, if available. This work can include permanent, fixed term positions and temporary assignments. Suitability depends on various factors, including skill and ability, pay, job status, location, working environment and hours of work.
An employee who is under notice of redundancy has a statutory right to a trial period of 4 weeks
in an alternative job, where the provisions of the new contract differ from the original contract. This trial period will begin when the previous contract has ended.
The 4-week trial period can be extended for retraining purposes by written agreement and following consultation with a HR representative.
If the employee works beyond the end of the 4-week period, or the jointly agreed extended period, any redundancy entitlement will be lost.
Should the Company wish to end the new contract within the 4-week period for a reason connected with the new job the employee will preserve the right to a redundancy payment under the terms of their old contract. If the dismissal is due to a reason unconnected with redundancy, the employee may lose that entitlement.
Confirmation of Redundancy
If the consultation process has not been able to identify sufficient redeployment opportunities, then the post will be declared redundant. The employee will receive written notification confirming their redundancy and their right to appeal, together with details of any redundancy payment and notice provisions.
Any appeal should be submitted in writing within 5 working days of the employee receiving the written decision to dismiss. The appeal must state the grounds for appeal.
The appeal will be heard by a more senior manager than the dismissing line manager and the hearing will be a review of the decision to dismiss.
The decision following the appeal shall be confirmed in writing and shall be final.
Time Off to Look for New Work/Training
An employee who is under notice of redundancy, and has been employed continuously for 2 years or more, has a statutory entitlement to a reasonable amount of time off to look for another job or to arrange training.
Prior notice of time off must be given to the employee’s Manager/Supervisor and approval sought. Kelly will endeavour to approve such requests, subject to business requirements.
Employees on Maternity Leave
If the position of an employee on maternity leave becomes under threat of redundancy, or the employee is in a redundancy pool, formal individual consultation should take place. The consultation can either be face-to-face or via written correspondence, including email.
If the employee’s role becomes redundant, she must be offered a suitable alternative vacancy where one is available. Under the Maternity and Parental Leave Regulations (1999), the employee on maternity leave must be offered first refusal on any suitable alternative vacancy over other employees under threat of redundancy, even if they are better qualified than the employee on maternity leave.
_Request to take Retirement
If an employee wishes to apply for retirement whilst in the redundancy process then they must make this request prior to notice of redundancy being served. Should Kelly accept this application then the employee will be required to sign an agreement confirming their reason for leaving. In such circumstances the employee will not be entitled to any redundancy payment.
Redundancy payments will be calculated in accordance with government guidelines. Eligibility for a redundancy payment may be lost if an employee unreasonably refuses an offer of suitable alternative employment, is dismissed under the disciplinary procedure prior to confirmation of redundancy or resigns prior to confirmation of redundancy.
A redundancy payment is due only to employees of Kelly with at least 2 years of continuous service.
UK - An employee who qualifies for a redundancy payment will normally be entitled to Statutory Redundancy Pay (SRP) only.
SRP is calculated on the employee’s age, counting back from the date of dismissal;
o 0.5 week’s pay per complete year of service up to their 22nd birthday o 1 week’s pay per complete year of between 22 and 41 o 1.5 week’s pay per complete year of service after 41st birthday
- A week’s pay is capped at £525 where the employee’s employment ends on or after 6 April 2019. Length of service is capped at 20 years. - The maximum amount of SRP is £15,750.00.
- SRP is tax free up to a maximum of £30,000.
Ireland - The amount of the redundancy payment is determined by the employee's length of continuous service and weekly earnings. Weekly earnings include gross weekly wage, average regular overtime and benefits-in-kind. Currently, the maximum weekly amount for a statutory redundancy payment is €600. If an employee is eligible for a redundancy payment, they are entitled to:
o Two weeks’ pay for each year they have been employed and o A bonus week's pay
If an employee has worked part of a year, they are entitled to two weeks multiplied by the part of the years
Employees may be required to work the full notice period once a notice of termination for redundancy has been issued. Reasonable time off to look for alternative work will be permitted in such circumstances (see time off to look for work/ training).
In some circumstances, it may not be necessary or appropriate for employees to work throughout the notice period. In such cases, Kelly may decide to place the employee on Garden Leave for the duration of the notice period. This means that the employee will continue to be employed by Kelly throughout the notice period, but will not be required to attend work or carry out their normal duties for all or part of the notice period. Employees may be required to attend work on occasion throughout this period, for example, to hand over work or to provide training and being available to attend work where necessary is a condition of the garden leave arrangement.
As an alternative to remaining in employment at work or on garden leave, Kelly may decide to make a payment in lieu of notice to the employee (known as PILON). This means that the employee’s employment with Kelly will end immediately without notice and a single/ final, payment representing the employee’s salary throughout the notice period shall be made to the employee.
For further advice and information, please contact the HR department.
Kelly recognises that going through a redundancy process can/ will affect each person differently. You may need extra support and guidance throughout this process. The Aviva Employee Assistance Programme (EAP) offers a 24hr helpline with experts who can give you personal support and guidance on all manner of issues. They can also offer counselling either over the telephone or face-to-face where appropriate. You can contact the EAP on 0800 015 5630 or download the free EAP in your pocket mobile app, using the access code AVIVAIYP1116.
All employee data is handled in line with the General Data Protection Regulation (GDPR) 2018.