Change management agreement
Introduction
The change management agreement is between us and the Lincolnshire county branch of Unison. It applies to all employees under the terms and conditions determined by the NJC for local government services as supplemented by the Local Scheme.
The agreement does not apply in schools, where governing bodies are responsible for working arrangements.
There will be periodic review of the document to ensure its principles and procedures remain relevant to the needs of LCC, employees and representatives. Any future changes will require the agreement of both parties unless dictated by legislation.
Aims of the agreement
This agreement applies to structural and organisational changes. These decisions may lead to the reduction of employee numbers or alterations to contracts of employment.
This agreement aims to:
- ensure change is managed fairly and effectively
- provide a clear procedure for the management of change
- ensure changes follow accepted good practice and fall within our health and safety procedures
- encourage agreement of all parties by using a consultative approach
- recognise our responsibility to make reasonable efforts to offer suitable alternative employment to affected staff
- maximise flexibility in the deployment of staff and to provide training for the purpose
- recognise us as a single employer embracing all director areas
Consultation
We will consult employees and unions on proposals involving organisational change before making decisions. It allows time for the consideration of suggestions.
The following consultation periods apply for the expected number of redundancies:
- where there are expected to be less than 20 redundancies the consultation must start at least 14 days before any dismissal
- where there are expected to be 20 to 99 redundancies - the consultation must start at least 30 days before any dismissals take effect
- where there are expected to be 100 or more redundancies - the consultation must begin at least 45 days before any dismissals take effect
Procedure
Consultation should start at the earliest opportunity. At first this would be through informal discussion with employees and Unison. Informal discussions give affected employees the chance to consider and comment before the formal consultation begins.
Formal consultation with employees and unions will take place, with a view to trying to reach an agreement, before the executive director makes the decision.
Line managers will consult with individual employees where changes can be achieved within existing contracts of employment. Where appropriate, director area union representatives should be included.
Implementation
There are five steps to follow to implement changes in organisational structures. We aim to avoid compulsory redundancy where possible.
Executive directors, or their representatives, will:
- identify the posts and the areas being affected
- carry out an impact analysis assessment
- consider change mechanisms, eg, by natural wastage, restrictions on recruitment
- consider voluntary solutions such as early retirement, redundancy, reduction in hours, job share
- operate the redeployment procedure
The process
When we determine the positions in the new structure, existing employees should assimilate into the posts. We will take into account their expressions of interest, including voluntary solutions. Assimilation must take into account the extent to which those employees will meet the essential requirements of the job.
Employees affected by restructuring are entitled to discuss their interests and concerns with management. A work colleague or recognised trade union representative or official can accompany them.
Where the number of posts in the new structure is exceeded by the employees affected, it is likely that we will use ring-fencing. This will give such employees priority in applying for available posts. We will reach an agreement with the relevant unions on:
- the method of selection to the newly-established post
- any ring-fencing arrangements
During the assimilation process, we will safeguard the interests of employees who want alternative roles and to continue with the council but are not likely to find a role in the new structure. The executive director is responsible for this.
As a matter of principle, it should be agreed that, we will not make any significant promotion in a new structure at the expense of a redundancy elsewhere in the organisation. Where possible, the concentration of job losses should not centre on one group of employees (for example, lower-graded posts).
At-risk status
Once the position is clear and after consultation with the Executive Director of Resources, the Service Executive Director will declare those employees who have been, or who are likely to be displaced, as ‘at risk’.
Employees on fixed-term or temporary contracts will not receive at-risk status if their contract is reaching its fixed end date.
These employees will be eligible to apply for any vacant posts. They will not receive the prior consideration for posts that at-risk status provides. The exception is employees with at least four years of continuous local government service.
Employees on fixed-term or temporary contracts are eligible for redundancy payments. These are subject to certain qualifying circumstances.
For more details, read our fixed-term and temporary contracts policy.
We will try to ensure that we declare at-risk status in time for affected employees to find alternative employment, within or outside the council.
Executive directors will retain the right to recruit from outside the defined area. That is if it is clear that the existing employees in that area cannot meet the requirements of the post. In these circumstances, we will explain the reasons for this, both to at-risk employees and their union.
Lincolnshire County Council (LCC) has responsibilities in law as a single employer. Whilst Executive Directors hold prime responsibility for the recruitment and dismissal of employees, LCC has a statutory duty in redundancy situations to minimise the effect of redundancy and to actively consider whether suitable alternative employment exists and if such alternative employment is offered, it is offered subject to an appropriate trial period.
A redundant employee has a shared responsibility with us to look for suitable alternative employment. To maximise redeployment opportunities, employees must adopt a flexible approach when considering alternative posts.
Following the completion of the formal consultation, there may be a requirement to redeploy affected employees. Employees displaced as a result of change may be interested in voluntary redundancy or early retirement, reduction in hours, or job sharing.
For more details, read our:
At-risk employees have a right to prior consideration for appointment to any vacancy at the same or lower grade than their existing post. They must meet the essential requirements or would do, given suitable training. Prior consideration means that the employee is entitled to an interview before any other candidate.
Where at-risk candidates meet the essential requirements of the post, we should formally appoint them. If they are not appointed, the recruiting manager must inform the employee with reasons why, in writing, before making another appointment.
Where we make an offer, the employee gets a reasonable time to reach a decision and to discuss relevant issues or concerns. We will implement the proposals after all parties agree.
Employees who are under notice of redundancy have a statutory right to a trial period of four weeks in an alternative job. This applies where the provisions of the new contract differ from the original.
If by mutual agreement, we cannot achieve redeployment, we may offer at-risk employees a transfer to another post. This offer will be the responsibility of the employee's executive director, after consultation with the recognised trade union.
The offer for transfer will not be arbitrary and will take account of:
- qualifications, experience, ability and aspirations
- personal circumstances
- the status of the post offered
- whether the employee is following a course of study for a qualification
If the alternative employment is mutually agreed to be not suitable executive directors, or their representative, will discuss any appropriate redeployment opportunities which may exist at the time with the employee.
If an employee unreasonably refuses an offer of suitable alternative employment, we will withdraw the provisions of the policy and entitlement to a redundancy payment.
Employees previously redeployed through organisational change, who are on salary protection, will have a right to an interview. They must meet the essential criteria of any vacancy at the same grade to their previous post.
We will class the interview as at-risk. The vacancy must occur within two years of the original redeployment. The employee must not have moved house with assistance under the relocation scheme.
Support
Salary protection
Salary protection applies to an employee who accepts a post on a lower grade as a result of restructuring or change in the workforce. There will be no protection on a reduction in hours.
Salary protection will apply:
- for a maximum period of two years
- with a limit on the maximum protection available of £3,000 (pro-rata for part-time staff)
- with the existing salary immediately frozen. We will not pay increments or pay awards until or unless the substantive grade maximum exceeds the protected salary
After two years, we will adjust the salary paid to that payable at the maximum of the substantive grade.
Other support
- The application of the scheme of disturbance payments
- Protection of pension, where appropriate, shall be by following local government pension scheme regulations in line with the Pension act 2004
- Employee support and counselling service
If an employee feels we have unfairly applied the measures to them, they may seek redress through the grievance procedure.
Whilst confirming their commitment to the agreement, both parties retain a right to terminate by giving a minimum of six months' written notice.