Redundancy Policy

1.     Introduction

The Company’s intention is that it should maintain a long-term employment relationship with its colleague. Compliance Group Limited recognises the contribution that all staff make to deliver its business objectives, and also the need to ensure that staff feel secure and are appropriately supported throughout their employment.

The company will therefore seek to ensure that the business planning process takes account of staffing implications and wherever possible, avoid the need for redundancies. However, there may be situations caused by, for example, changes in business circumstances, organisational requirements and technological developments, which affect staffing needs. A potential redundancy situation arises in the following circumstances:

• When the company has ceased or intends to cease to carry on the business or which the colleague was employed, or has ceased or intends to cease to carry on that business in the place where the colleague was so employed; or The requirements of the company for colleague s to carry out work of a particular kind, or for colleagues to carry out work of a particular kind in the place where the colleague was so employed, have ceased or diminished or are expected to cease or diminish;

Redundancy is a form of dismissal (where the colleague is deemed to be not at fault) and becomes a consideration where work of a particular kind has ceased or diminished; i.e. the company has ceased to do work of a particular type, or that work has become less, requiring fewer people.

UK legislation is clear about the procedures which should be followed in a redundancy situation and Compliance Group Limited is committed to meeting those requirements.

The Redundancy Policy and Procedure will only be used where there is a genuine redundancy situation. This Policy and Procedure will be used in instances where there are fewer than 20 redundancies over a 90 day period. In the event of more than 20 roles being identified as potentially redundant, the statutory procedure for collective redundancy consultations will apply.

2.     Scope

This policy applies to all Compliance Group Limited colleagues. This policy does not form part of your terms and conditions of employment nor can it establish contractual rights. The Company will keep this policy under review and may from time to time amend, replace, or withdraw it in its sole discretion, for whatever reason.

3.     Policy

The Company will endeavour to avoid making your role redundant and will consider any viable alternatives to preclude such action. These may include:

• Seeking savings from non-staff budgets
• Reviewing the use of agency staff, self-employed contractors and consultants;
• Restricting recruitment in the areas into which you might be redeployed
• Reducing overtime in affected departments to meet contractual commitments or provide essential services
• Considering the introduction of short-time working, job-sharing or other flexible working arrangements, where these are practicable.
• Identifying suitable alternative work that might be offered to potentially redundant colleagues.
• Inviting applications for early retirement or voluntary redundancy from affected departments. In all cases the acceptance of a volunteer for redundancy will be a matter of our discretion and we reserve the right not to offer voluntary redundancy terms or to refuse an application where it is not in the interests of our business to do so;

Any measures adopted must not adversely affect our business and our ability to serve our customers.

In the event that redundancy becomes necessary, the Company will seek to minimise the number of colleagues affected and will consider the impact of such a decision on you before taking action.

Redundancy consultation and any dismissals will be conducted in a transparent, fair and equitable manner, in line with current legislation.

4.      Principles

The Company will aim to always comply with legislation and any redundancy process will be run as transparently as possible. Decisions regarding redundancy will be based, as far as possible, on objective assessment.

Following any announcement that there is a risk of redundancy, you will have the right to be accompanied to any individual consultation meetings by a Trade Union representative or colleague who is an colleague of Compliance Group Limited. Consultation periods may vary in duration according to circumstances and there is no minimum or maximum duration.

At all times during the process your Manager will make it clear to you what stage has been reached.

You will be notified in writing if you role is identified as potentially at risk of redundancy.

You will be invited, in writing, to a meeting and notification will clearly state the purpose of the meeting. There will be a minimum of two meetings held during the process. Further meetings will be held as appropriate.

Compliance Group Limited does not automatically enhance redundancy terms, in a redundancy situation any accrued but untaken annual leave entitlement will be paid with the final salary, subject to your normal statutory deductions. If you have taken more leave than was due by that point in the year, excess holiday pay may be deducted from your final salary payment.

If your role is made redundant you will normally be required to work your notice period, managers may either be asked to take garden leave or be given pay in lieu of the unworked notice at the request of the Company.

You will receive notification of redundancy and severance terms in writing.

You will have the right of appeal against any decision to make you redundant and If you have significant knowledge or expertise you may also be subject to extra agreements which concern confidentiality and anti-competition measures.

5.     Procedure

CGL will adopt a fair, consistent and objective approach to the selection of those whose employment is to be terminated.

5.1 Internal Announcement

Where a number of redundancies are contemplated either;

• Meetings may be called where individuals or colleagues within a department or business unit are informed of the need for redundancies. At this meeting the Manager will outline the fact that the Company is looking at a proposal which might lead to redundancies, the reason for the redundancies, whose roles may be impacted, the process which the Company proposes to follow and timescales and will answer any appropriate questions. This meeting will be followed up with a letter confirming what has been said,

 or;

• A letter will be distributed that outlines the fact that the Company is looking at a proposal which might lead to redundancies, the reason for the redundancies, who may be impacted, the process which the Company proposes to follow, timescales and will answer any appropriate question;

This meeting or letter does not form the start of consultation. Consultation will not be deemed to have begun until the first consultation meeting takes place.

5.2 Consultation

The first stage of the redundancy process is a consultation period. If your role is ‘at risk’ of redundancy you will be invited, in writing, to an individual meeting with the Line Manager and a member of the HR team to discuss the possibility of redundancy.

 At this meeting the Manager will:

• explain the reason for the proposed redundancy;
• outline the reason for your role being at risk;
• if there may be a need for selection, outline the proposed selection process;
• give an indication of what your redundancy package might be; and
• discuss proposed timescales;

Duing this and all other individual consultation meetings, you will have the right to be accompanied by a Trade Union representative or a currently employed work colleague. . The right to be accompanied does not extend to an colleagues friend, relative or solicitor. Colleagues are expected to make all arrangements for their accompanying person to attend meetings and it is expected that adequate time be allowed to arrange representation and attendance. Where the chosen companions cannot attend on the date proposed, the colleague can propose an alternative time and date so long as it is reasonable and within a reasonable timescale, normally within five working days of the original date;

• You will be given the opportunity and appropriate time to comment and to put forward any alternatives to the proposed redundancy that the Manager may not have considered;
• In the event that a selection process is required, you will have the opportunity to give your feedback on the proposed selection process You will be given appropriate time to consider the issues discussed at the meeting further, and to comment or respond as you consider appropriate. Further meetings may be held with you;
• Any alternative proposals to being made redundant that you feel are appropriate will be given due consideration;
• If no viable alternatives to the proposed redundancy are available, and the Company considers that your role will be redundant, you will be informed of this. Consultation will continue until you are formally notified that your role is no longer at risk or that your employment will be terminated;
• The Company will write to you reiterating the process to date, notifying you that your role has been identified as redundant and that, in the event that another suitable role is not found, the termination of your employment by reason of redundancy is proposed and the reason why. The letter will invite you to a meeting to discuss the matter and will clearly state that the meeting is to discuss your potential dismissal by reason of redundancy;
• This meeting will be held with you to discuss you redundancy and will be attended by your Manager, the HR Department and yourself. You can be accompanied by a work colleague who is an colleague of Compliance Group Limited or a Trade Union representative.
• You will be notified of your Manager’s decision in writing. If the decision is to dismiss you will be told of your right to appeal;
• As you will be working your notice period, during this period you will be entitled to reasonable time off work with pay to search for alternative employment and/or for training;
• Suitable alternative employment will be offered where appropriate. Suitable alternative employment must meet all criteria set forth in the relevant legislation;
• In considering whether a position represents suitable alternative employment the following will be taken into account: loss of status, loss of fringe benefits, place of work, general terms and conditions, job prospects, salary, hours, location and job content. If any of these factors change considerably the job will not be deemed a suitable alternative;
• If you unreasonably refuse an offer of alternative employment you may lose your right to a redundancy payment
• Where there has been no offer of suitable alternative employment, there may still be opportunities within the business that could offer an alternative to redundancy;
•  We will provide website addresses and relevant contact details so that you can seek information about such vacancies within the Company. If your role is at risk the HR Department will facilitate any appropriate introductions with Recruiting Managers;
• If you are interested in an alternative position within the Group then you will be considered along with other candidates for the role If you are offered a position, you will have the right to a 12 week trial period in the new job. The trial period can be extended by mutual agreement. During this period if you do not feel the role is suitable for you or the company feel you are not suitable for the role, we will revert to the original redundancy termination.

5.3 Appeals

In the event that you wish to appeal against the decision to make your role redundant, you should write to HR detailing the reasons for your appeal within 5 working days of receipt of written confirmation of redundancy.

HR will identify a suitable Senior Manager to hear the appeal. You can be accompanied at the appeal meeting by a work colleague who is a colleague of Compliance Group Limited or a Trade Union representative.

In the event of an appeal being lodged, the termination date will not be changed unless the outcome of the appeal is that you are reinstated, in which case you will receive back pay for any period in which you have not been on the payroll. You will be notified of the outcome of the appeal in writing.

Appeals can be made on the following grounds:

• The procedure was unfair, or the correct procedure was not followed.
• The decision was unfair because the evidence did not support the outcome.
• There is new information which was not previously available which would affect the decision to dismiss.

On the basis of the information presented by the colleague the manager/director hearing the appeal may reach one of the following conclusions:

• Confirm the dismissal appealed against.
• Uphold the appeal of the colleague if there is evidence to support his/her continued employment or if the procedure has been unfair.
• Adjourn the process due to significant new evidence.

The outcome of the appeal will be final and there is no further internal right of appeal. Any dismissal under this procedure will remain in force pending the outcome of any appeal.

6.4 Redundancy Payments

If your role is redundant, you are eligible to receive a statutory redundancy payment, unless you have unreasonably refused an offer of suitable alternative employment.

The Company will calculate redundancy payments using the statutory calculation as a template.

You must have 2 years’ continuous service to be eligible.

Any redundancy pay up to £30,000 will be paid free of normal deductions after you have left company service, any sum over this amount is subject to your normal marginal rate tax deduction and national insurance deductions.

Download our Redundancy Policy here