Blue Book Redundancy Procedure

[Nomad]

 (Thanks to Dizdaz)

BLUE BOOK REDUNDANCY PROCEDURES:

A. INTRODUCTION

The company recognises that security of employment is of prime importance to all its staff. In consequence the company will make every effort to maintain continuity of employment as a major aim and objective, it is however, recognised by the parties that economic, trading and other factors and conditions may arise from time to time so as to render this objective unattainable.
Where the situation requiring a notification of redundancy to the trade union arises, it is the intention of the company to handle the resulting redundancy in a most sympathetic manner.

B. NOTICE TO TRADE UNION

It is agreed that the trade union will be notified in writing and fully consulted by Management at the earliest possible moment in a redundancy situation. This written notification will state the reason for the redundancy, and the number and descriptions of the employees to be made redundant. The notice to the Trade Union will be ninety days in the case of 100 or more potential redundancies and thirty days in the case of between 10 to 99 (inclusive) potential redundancies.
Simultaneously the above notification to the Trade Union, the Department of Employment will be notified ninety days before the first date of termination in the case of 100 or more employees and thirty days in the case of 10 to 99(inclusive) employees.
Not withstanding the above notification to the Trade Union and the Department of Employment, the company undertakes to advise the Trade Union as soon as practicable of the likelihood of a redundancy situation.

C. LABOUR REQUIREMENTS

The Company will endeavour at all times to plan recruitment to take account of long term labour requirements.

D. REDUCTION OF STAFFING LEVELS

As a alternative to declared redundancy, reductions in staffing levels may be carried out by a process of natural wastage or other measures following consultation and negotiation between the parties.

E. OVERTIME

Where possible the company and the Trade Union will co-operate in obtaining reductions or abolition of overtime working in potential, or actual redundancy situations.

F. PRELIMINARY PLANNING

The Company will endeavour if practicable to:

i. Offer transfer to alternative duties and/or locations for such suitable vacancies as may be available.
Ii. Offer re-training facilities as available to new employees.
Iii. Compile a list of appropriate vacancies for distribution.

G. ALTERNATIVE EMPLOYMENT

An employee who accepts alternative employment will be allowed a four week trial period. During this four week trial period they may still elect to be treated as redundant where it can be shown that the alternative employment is unreasonable.

H. TRANSFER TO WORK AT A LOWER RATE OF PAY

Any employee who, as a result of redundancy, if offered and accepts alternative employment which involves a lower basic rate of pay shall, starting starting from the date of commencement in the new job, be paid the new base rate plus a 'personal rate'. All other payments will be those applying to the new job.

The personal rates referred to above are subject to the following:

i. That they do not exceed twenty-five percent of the 'New' basic rate.
Ii. They are reduced by any wage increase agreed, including promotional increases or by twenty-five percent of the personal rate per year, whichever is the greater.
Iii. That they do not attract any premium payments.

I. RE-TRAINING

i. Where there are suitable employees who would otherwise be made redundant they will, where possible , be given the opportunity of re-training for a maximum period of four weeks to fill these vacancies.
Ii. If at the end of the agreed re-training period trainees are not competent in the job in which they have been re-trained or if during that period it is judged that they will not become competent, their employment will be terminated following consultation with the appropriate Trade Union official. They will still qualify for the redundancy payments provided for in this Agreement.

J. SELECTION CRITERIA

Where redundancy is declared , selection for such redundancy will be in the following order:

i. Employees beyond the company's normal retirement age.
Ii. Casual staff, I.e. those employees who are on a contract of Employment of less than thirteen weeks duration or undergoing full-time education.
Iii. Voluntary redundancy within the Department or Grade, where acceptable and practicable, subject to Management approval.
1v. All other employees within the Grade, Department or the location affected (wherever is applicable).

Such redundancies within the categories indicated above to operate on a basis of 'Last in First out' all things being equal.

K. NOTICE TO EMPLOYEE

All employees will receive the notice of termination of employment as provided for their contract of Employment.

L. SEEKING ALTERNATIVE EMPLOYMENT

Employees declared redundant will be entitled to four half-days off with pay, in order to seek alternative employment, attend interviews etc., by arrangement with their immediate superior.

M. REDUNDANCY PAYMENT

The Redundancy Payment is a compensatory award, paid by the company, based on the following elements:

i. Statutory Minimum Entitlement.
Ii. Additional Service Entitlement.

i. Statutory Minimum Entitlement

The full details of the statutory Minimum Entitlement can be obtained from the appropriate Personnel Department, or the local office of the Department of Employment.

Ii. Additional Service Entitlement.

The Additional Service Entitlement Element is based solely on the employee's continuous service with the company and / or its subsidiaries and is payable to all employees, except:

a) Those employed as Temporaries.
b) Those employed on Fixed Term Contracts of less than two years duration.
c) Those beyond the company's normal retirement age.

Each individual employee declared redundant within the terms of this Agreement, will receive, in addition to their Statutory Minimum entitlement, the following:


Service.............................No. of weeks pay

Over 1 month but under 5 years ..... 8
Over 5 years but under 10 years .... 10
Over 10 years but under 11 years... 12
Over 11 years but under 12 years... 14
Over 12 years but under 13 years... 16
Over 13 years but under 14 years... 18
Over 14 years but under 15 years... 20
Over 15 years but under 16 years... 22
Over 16 years but under 17 years... 24
Over 17 years but under 18 years... 26
Over 18 years but under 19 years... 28
Over 19 years but under 20 years... 30
Over 20 years but under 21 years... 32
Over 21 years but under 22 years... 34
Over 22 years but under 23 years... 36
Over 23 years but under 24 years... 38
Over 24 years but under 25 years... 40
Over 25 years ............................ 52


N.B: Under the Additional Service Entitlement a 'Weeks Pay' means the average of the twelve weeks GROSS PAY immediately prior to the issuing of the official Redundancy Notice.

N. ADJUSTED PAYMENT

The Statutory Minimum and Additional Service Payments referred to above are adjusted for staff who are within twelve months of their normal retirement date, or their last twelve months employment where they have opted to retire earlier.

This adjustment is equal to a reduction of one-twelfth for each full months service completed in the final year.

O. TRAVERLLING ALLOWANCE

If an employee is offered and accepts employment in another establishment of the company within reasonable daily travelling distance, the employee will be paid an allowance agreed between the parties for a period of twenty-six weeks from the beginning of the new employment.

P. REMOVAL EXPENSES AND DISTURBANCE ALLOWANCE

If the company, as an alternative to declaring a redundancy, offers the employee, and the employee accepts employment in another establishment of the company beyond reasonable daily travelling distance, that employee will receive:

1. A. Removal expenses (to be arranged between company and employee).

B. Where the removal involves house sale and / or purchase, professional fees and legal charges necessarily incurred.

C. A day off with pay for the purpose of moving house.


Note: The total of a. and b. not to exceed the redundancy payments detailed in this agreement.

Ii. Disturbance Allowance equal to two weeks basic pay.

Q. INTERPRETATION

It is agreed that any questions relating to the interpretation of the Redundancy Section of these Procedures shall be referred to The Grievance Procedures Terms and Conditions Section.

The company and Trade Union agree that there shall be no industrial or unconstitutional action whilst matters are in procedure.

This link will work out your Statutory Minimum Entitlement.
Add this to your Additional Service Entitlement to get an idea of your redundancy award.

http://www.dti.gov.uk/cgi-bin/er_feb07_reconner.pl