HR conference for school leadersRestructuring to balance the books

Restructuring to balance the books or centralise servicesTips and know how

Tom Wallace, HR Consultant, Browne Jacobson LLP11 October 2016

Context:• Our joint Leadership Survey confirms that 55% of

respondents are facing the need to make staffing reductions due to financial pressures. Our recent webinar also indicated the same.

• Statement from the Schools’ Minister, Lord Nash:

“Education in schools has operated in a relatively benign financial climate for a long time. But a new generation of school leaders is going to have to emerge to cut their cloth to drive efficiencies. This is one of the biggest challenges facing the school system: schools will increasingly have to do more with the same money.”

Are you considering a restructure?

Session purpose:Help you to ensure that any restructure is done in a way

that: • is legally compliant and minimises the risk of legal

challenge • considers staff morale and minimises the disruption to

teaching and learning

• complies with good practice whilst minimising prolonged uncertainty.

What we will cover:

• centralised Services

• a step by step guide to a restructure

• top tips and pitfalls to avoid

• Questions.

Tips if restructure needed• Consider pay protection when planning costs: three years

for teachers and typically one year for support staff if redeployed to other roles on lower pay.

• LGPS members who are 55 or over must access their pension if made redundant and the employer must meet the cost of pension strain – get costs in advance.

• Check your funding agreement as the EFA may fund redundancies (in some but not all cases).

• Check your policy to see if you offer enhanced payments.

Centralised services

Centralised services• Consider HR, Finance and IT.

• Can bring significant time savings, removing inefficiencies generated by completing the same task at each academy.

• Can ensure greater consistency and accountability. Can also eliminate any areas of non-compliance with the Academies Financial Handbook and the MATs own financial guidelines.

HR• One of the main benefits of a centralised HR approach

will be the consistency in delivery and implementation of HR policy and procedure.

Task Transfer to the MATAdvice and Guidance YesHR Policies YesHR Support to Staff YesInduction of new staff NoMonitoring leave and overtime YesPayroll – Changes YesPayroll – Income Tax YesPayroll – NI YesPayroll – Pensions YesPayroll – Processing YesPre-employment checks YesRecruitment YesSickness absence monitoring Yes

FinanceTask Transfer to the MATAcquiring additional funding

Yes

Banking and Cash Management

No

Budget Management YesBudget Setting YesContract Management YesEFA Reporting YesFinancial Accounting YesFinancial Reporting YesFinancial Strategic Plans YesImplement Financial Handbook

Yes

Internal Audit YesInvestments YesInvoices and Payments YesMaintenance of PSF YesManagement of School Finances

Yes

Month End Processing YesOrdering NoProcurement YesYear End Processing YesYear End Reporting Yes

IT• Combine on-site support and remote support.

• Consider external ICT Support Organisations.

A step by step guide to a restructure

Planning• Do not underestimate the importance of planning.

• Start before you are facing a deficit and use any surplus wisely.

• Staffing levels and structure should be determined by:• curriculum plan• student numbers and demographics• class sizes• income• SLT structure and distributed leadership.

ConsiderationsSecondary schools are critically evaluating:• breadth of curriculum and whether sustainable• class sizes and whether small KS5 classes can run• free periods in excess of PPA and discontinuing instead

or before redundancies• seeing through those students already doing GCSEs

can be expensive so plan ahead• size of SLT and role/impact of middle ‘leaders’• SLT teaching allocation.

Timeframe• Consider contractual notice periods:

- teachers – October, February and May - support staff – no specified dates.

• If restructure involves teachers - work back from the notice dates and ensure steps in policy including dismissal meetings happen in time.

• Don’t forget half term – exclude for the purpose of the process.

• Contingency for slippage of dates.

Timeframe - exampleAction Date

Trade Union Officials notified w/c 5 January 2016

Formal announcement staff meeting 12 January 2016

Individual Consultation Meetings w/c 19 January 2016

Consultation Ends 27 February 2016

Selection Process Begins 9 March 2016

Outcome of selection process communicated 17 April 2016

Formal dismissal meetings w/c 5 May 2016

Appeals (if applicable) June 2016

Outcome of Appeals (if applicable) June 2016

Termination Date 31 August 2016

Top tipsTimings:

• don’t forget relevant notice for dismissal hearings – normally five working days – can be up to 10 days in policy

• agree hearing and appeal dates with unions at the outset to ensure availability if possible.

20 or more redundancies

• HR1 Form – must be completed if 20 or more staff are at risk – if you miss their notice periods you cannot make any redundancies.

• Consultation periods are longer if 20 or more redundancies within a 90 day period

The business case• Summarises the case for the restructure and who and

how staff are affected.• The enabling process should be included; along with a

timeline.• Include current and proposed organogram and

financial implications.• Send to trade unions.• Staff also receive a copy – including absent staff.• This forms the basis of consultation.

The business caseProposal and numbers and type of staff affected:• Direct match If a role in the new structure is considered very similar to

the current role and there are sufficient or excess posts for people, then it will be deemed to be a direct match. As a result the post will not be opened up for applications.

• Ring-fencing Ring-fencing applies where the number of people exceed the number of the same type of post e.g. Maths Teacher.

All staff at risk of redundancy should have the opportunity to be considered for new or vacant posts in the structure.

The Business case• Justification for each staff area/position: - e.g: There is no longer the need for the same number of

finance officers. This is because of the improved efficiencies and benefits of PS Financials – the new accounting system which has the ability to e-mail receipts, invoices and statements as PDF files and an improved bank reconciliation process and more efficient reporting.

• Need to demonstrate either a reduced or diminished need for the work in order for there to be a fair redundancy reason for dismissal.

Top tip

• Staff want to know how they are potentially affected and what their options are - ensure this is as clear as possible to minimise uncertainty and have meaningful consultation.

Consultation• Timing – statutory or policy.• One-to-one meetings (notes taken) with employee and

rep (if applicable).• Have redundancy figures ready and decide in advance

about any enhancements for volunteers.• Staff can raise very genuine points/proposals during

consultation which may alter the new structure – that is the point of consultation.

Pools• The business case details who is deemed to be in each

pool.

• Give thought to this and don’t rely on job titles.

• Seek advice and don’t have favourites.

Question:

Question

If you need to reduce by one ICT Technician would you pool all Technicians?

Selection criteria• Consult on the proposed method and criteria by

including in the business case.

• How will you select for redundancy?- Interview- Scoring/skills matrix

• Declaration of interest form if staff can apply for more than one role

Top tips

• Best practice is to have a panel of three scorers or interviewers.

• If using attendance must exclude maternity and disability related absences.

Voluntary redundancy• During any restructure Voluntary Redundancies (VR)

should be offered as this will reduce the number of compulsory redundancies.

• Must state they will be accepted on an individual and case by case basis ensuring the needs of the school and pupils are met.

• Can incentivise by paying in lieu of notice. Avoid enhancing financially and be consistent.

Redundancy payments• Statutory or enhanced – check policy and previous

precedents. • Ensure calculations have been run for all at risk staff

in advance.• Support Staff in the LGPS who are over 55 and under

60 are entitled to have their pension ‘topped’ up – big additional cost.

• Ensure continuous service is correct and ask whether previously made redundant (this breaks service).

Support for displaced Staff• Suitable alternative roles in other Academies if a MAT

• Paid time off for interviews

• Support with interview tips/c.v

• Time to access support from trade union

• Be aware some staff may not have applied for a job in a number of years.

The Modification Order• Staff either receive redundancy pay and lose

continuous service or keep continuous service and pay back redundancy pay.

• If staff are made redundant with effect from 31 August they cannot start a new job in a school (or body covered by the Modification Order) on 1 September, unless they pay back their redundancy pay.

Any questions?

Further information Brownejacobson.com/education

Contact us

Tom Wallace+44 (0)20 7871 8513tom.wallace@brownejacobson.comvisit our education portal brownejacobson.com /education

Please noteThe information contained in these notes is based on the position at March 2016 . It does, of course, only represent a summary of the subject matter covered and is not intended to be a substitute for detailed advice. If you would like to discuss any of the matters covered in further detail, our team would be happy to do so.

© Browne Jacobson LLP 2016. Browne Jacobson LLP is a limited liability partnership.