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Restructure. Legal Definition In law = Business Reorganisation Lord Denning: “It is important that nothing should be done to impair the ability of employers.

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Presentation on theme: "Restructure. Legal Definition In law = Business Reorganisation Lord Denning: “It is important that nothing should be done to impair the ability of employers."— Presentation transcript:

1 Restructure

2 Legal Definition In law = Business Reorganisation Lord Denning: “It is important that nothing should be done to impair the ability of employers to re-organise the workforce and their terms & conditions of work so as to improve efficiency”

3 Making it happen Decide what needs to be done Make the business case Identify the posts affected Create an implementation plan Implement Review

4 What do you need to do

5 1 SWAT Analysis Decide what needs to change – identify the issue / business reason Consider what you must do Charitable objectives Organisation’s mission People you want to work with Services you need to deliver Staff you must have

6 2 Decide what works –Service delivery –People in jobs –Systems Decide what doesn’t work –Service delivery –People in jobs –systems Think about the changes you want

7 The Business Case-1 The Aim: To achieve the best structure to deliver the services within the budget you have Summary of SWOT analysis What the proposal is and why

8 2 Communication with employees –Key to success –Agreeing changes –Supportive during implementation How you will communicate with staff –Individuals affected –Staff meetings –Emails on progress How staff can communicate with you –Those affected –The rest Consultation period – 20 working days

9 3 Jobs/Staff affected –Explain Current role –How identified –Explain what changes –Recommendations on process Jobs created –description of roles –Rationale –How they fit within the new structure –How they will be filled

10 4 New Structure –Descriptions –diagrams Timescale –Decide when you want new structure to be in place and work backwards –List who is involved –Time lines and Dates

11 Problem arises: Where employer wishes to reorganise operations in such a way as to make changes to employee’s job or the way s/he carries it out Employee’s contract is static so s/he can insist on continuing to perform it as it stands But sensible balance needs to be achieved to allow changes to be made

12 Sensible Balance Can lead to changes in terms & conditions of employment Can lead to dismissals Potentially fair reason for dismissal Right of employer to dismiss employee who refuses to go along with business reorganisation

13 Employee may be dismissed For refusing to agree to the resulting change Or Because the kind of work they do ceases or diminishes  Redundancy

14 S ome O ther S ubstantial R eason SOSR Catch all phrase for potentially fair reasons not covered by others Employer required to show a substantial reason, and That substantial reason is a fair one

15 Substantial Reason Must be –Genuine –Sound business reason –Some serious effect on business Putting business case together is essential!

16 Refusal to agree to change If contract allows  misconduct - disciplinary If contract does not allow  SOSR dismissal

17 Establishing SOSR - The Fairness Test Prove the reason for dismissal –Result of restructure –Reasonable response Submit evidence: –What the business reasons were –That they were substantial  The business case will help!!

18 SOSR in Employment Tribunals Employment Tribunal decides whether employer acted reasonably in dismissing for SOSR: Employee consultation Fair hearing & appeal Whether employer searched for available alternative employment Range of reasonable responses that a reasonable employer might adopt

19 What is Redundancy? A redundancy is a dismissal which occurs when there is: closure of the business as a whole; closure of the business at a particular workplace; or requirement for employees to carry out work of a particular kind ceases or diminishes

20 Redundancy dismissal Potentially fair reason for dismissal How reasonable is the decision that redundancy is necessary –  the business case The rest of the procedure is fair Automatically unfair in some circumstances, for example on grounds of pregnancy/childbirth

21 Reasonable Conclusion Two factual questions: Has the requirement for a particular kind of work to be carried out ceased or diminished Is the dismissal wholly or mainly owing to that reduction = has one brought about the other?

22 A fair procedure Includes three elements: Selection – the pool & criteria Individual Consultation Offer of Suitable Alternative Employment

23 Legal Update

24 Volunteer X v Mid Sussex Citizens Advice Bureau CA 2011 The Court of Appeal has decided that an unpaid volunteer was not covered by the Disability Discrimination Act 1995. The volunteer was not in 'employment', since she had no contract, and nor was the voluntary work an arrangement made by the respondent for determining to whom it would eventually offer employment. The Court also rejected the argument that the EU Equal Treatment Framework Directive, which also prohibits discrimination in relation to 'occupation', covers volunteers. The Court's decision has implications for all of the protected characteristics now covered by the Equality Act 2010.

25 Repeal of Default Retirement Age  Employees lawfully retired provided  Notice was given by 5 th April 2011  Employee is or will attain 65 by 30 th Sep 2011  If given 12 months’ notice on 5 th April 2011, then last day for employee to request to continue working is 5 Jan 2012 – 3 months before notice runs out  Last date to issue extension of 6 months is 5 th April 2012  Very last day for retiring employee will be 3 rd October 2012 = 12 months notice + 6 months extension  Will still be possible to retire employee if can be objectively justified http://www.acas.gov.uk/CHttpHandler.ashx?id=2976&p=0

26 April 2011 Equalities Act 2010 in force: –Medical information –Compromise Agreements (S. 147) –Positive action in recruitment –Duel discrimination rules postponed again Flexible working – extended to 18, consult on application to all Additional Paternity Leave – up to 26 weeks, share of SMP payments Right to request training postponed Bribery Act 2010 Employers Charter

27 Equality Duty July 2011 Watered down from that in the DDA Equality Act 2010 creates a single public sector equality duty, and states that specific duties can be created to help public bodies meet their requirements under this general duty. The Government published draft Regulations on the specific duties in January 2011, but is seeking views on revised draft Regulations that reduce the burden on public bodies.

28 October 2011 Agency Workers Regulations 2010 come into force NMW rates: £6.08; £4.98; £3.64 & £2.60 By & during 2012 Parental leave increased from 3 months to 4 for each parent, only 3 months transferable Obligation on employers to enrol staff in contributory pensions And beyond Allowing parents to share maternity & paternity leave instead of mother having to return to work before father can take additional paternity leave

29 Vetting & Barring Scheme Merging CRB and Independent Safeguarding Authority (ISA) Reducing number of positions requiring checks to just ‘most’ closely/regular work Portable CRB checks between jobs Removing requirement for volunteers working with vulnerable groups to register and be monitored Changes included in Protection of Freedom Bill intended to replace the Human Rights Act 1998 in 2012

30 Reform of Tribunal System - Consultation Increase qualifying period for claiming unfair dismissal to 2 years Charge fee to lodge tribunal claim Parties to pay fees for ET and EAT All claims submitted to ACAS before tribunal for pre-claim conciliation Automatic financial penalties for employers in breach of employment rights paid to exchequer Reviewing formula for calculating tribunal awards and statutory redundancy payment limits


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