RESTRUCTURING AND REORGANISATION

RESTRUCTURING AND REORGANISATION - RESTRUCTURING AND...

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RESTRUCTURING AND REORGANISATION MANAGEMENT GUIDANCE 1. Introduction 1.1 In managing businesses re-organisations and staffing reductions, employers are expected to operate within a procedural framework. This document provides guidance on how the Council policy on restructuring, re-organisation and re- deployment should operate in accordance with good practice and underpinning employment law. 1.2 This document provides additional guidance to managers and should be used in conjunction with the Restructuring and Reorganisation Policy and Procedure. 1.3 The Staff Consultation Framework lays out lays out the Council’s requirements for consultation with Staff Side and employees in situations of organisational change, outsourcing of services and redundancy. It is essential that the provisions of this Agreement are followed during the restructuring and reorganising of services. 2. Redundancy (also see Appendix 2 of the Staff Consultation Framework) 2.1 The Employment Rights Act defines redundancy as a dismissal that is attributable wholly or mainly to the fact that: The employer has ceased, or intends to cease: (i) to carry on the business for the purpose of which the employee was employed; or (ii) to carry on the business in the place where the employee was employed; or The requirements of the business for employees: (i) to carry out work of a particular kind; or (ii) to carry out work of a particular kind in the place where the employee was employed; have ceased or diminished, or are expected to cease or diminish. 2.2 The are several ways in which the need to reduce employee numbers could arise at Croydon: A decision to close down a particular service, resulting in all the jobs in that service ceasing to exist. A decision to reduce a particular service, resulting in some of the jobs in that service ceasing to exist. Improvements in efficiency that result in a reduced need for jobs of a particular type. Changes in the way that a service is delivered, leading to a change in the type of jobs in the service. HR & OD Handbook – Apr 2005 1
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2.3 All of these scenarios could lead to redundancies. This Guide sets out the legal obligations that must be observed and establishes how the Council will manage the process. 2.4 Consultation is a legal requirement and the essential, core feature of the process. 2.5 If it appears that employee reductions may be needed the Managers concerned and their personnel advisers should get together as early as possible to assess the extent of the reductions required and to start making plans on how they might be achieved. 2.6 It is essential that this process starts at the earliest possible stage so that effective action can be taken to reduce the extent of any eventual redundancies.
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