Stage 5: Compulsory redundancy dismissal process

If, at the end of the three month advance warning period, it has not been possible to achieve the necessary staff reductions by voluntary means or through redeployment, the compulsory dismissal process must be followed.

In all cases the process for dismissal on grounds of redundancy must include:

At the end of this process, the formal notice of dismissal (A8 Dismissal notice (24kb) ) may only be issued after appropriate authorisation.

Each dismissal notice must include provision for an appeal.

Stage 5a: Authorisation procedure

There are separate procedures for authorising redundancy in different staff groups:

 Academic and academic-related staff

  • dismissals should be in accordance with Statute XII, Part B
  • for academic-related staff on an open-ended, externally funded contract the arrangements for a Redundancy Committee must be followed.

Support staff

In all cases the advice of the HR Business Partner should be taken before the compulsory dismissal process is started.

Stage 5b: fair selection of staff for redundancy

In cases where the number of staff to be dismissed is smaller than the number of staff in the potential redundancy pool, there must be a selection process to determine which employees will be dismissed.

Selection will involve choosing between employees who carry out the same or similar duties.  Departments must, therefore, give careful thought to the criteria that will allow a choice to be made.

These criteria should generally be objective and appropriate and applied fairly and transparently.  What constitutes appropriate criteria will vary according to local circumstance and advice must be sought from HR Business Partners at an early stage.  Employees and the appropriate trade union(s) should be notified of the criteria and given the opportunity to comment, in order to ensure that any special circumstances that apply to employees at risk of redundancy are taken into account in the selection process.

Some commonly used selection criteria include:

  • skills or experience
  • standard of work performance or aptitude for work
  • attendance or disciplinary record

but whatever criteria are used, it is essential that employees can be marked against them in an accurate, consistent and objective way.

The criteria, or the application of them, should not discriminate because of

  • protected characteristics under the Equality Act 2010 (which include: disability; gender reassignment; marriage and civil partnership; pregnancy and maternity; race; religion or belief; sex; and sexual orientation); or
  • trade union membership or activities, or assertion of a statutory right; or
  • unjustifiably singling out one type of worker against another, for example unjustifiably selecting a full-time worker over a part-timer or a permanent contract employee over someone on a fixed-term contract.

Stage 5c: notice period

Employees who are dismissed on grounds of redundancy are entitled to receive their contractual or statutory notice period, whichever is the longer.  This notice period should be given in the notice of dismissal.

The notice period may vary according to length of service and type of employment from a minimum of one week up to three months or more.  For further information see Notice.

Payment in lieu of notice may be available, on the advice of the HR Business Partner.

Stage 5d: Redundancy payment

Employees are entitled to a statutory redundancy payment if they have worked continuously for the University for at least two years and their post is being made redundant.

This applies to those on fixed-term (whether terminated prematurely or at their expected date) as well as open-ended externally-funded or permanent contracts.

Employees may, however, not be entitled to a redundancy payment if they:

  • have found, or been successfully redeployed, to another post within the University;
  • have been offered and refused suitable alternative work without good reason;or
  • leave employment before the end of the notice period (by resigning) in order to take up alternative work outside the University, without having given proper notice.
  • HR Business Partners should be consulted on specific cases.

Whenever a redundancy payment is made, the employee must be given a written statement showing how the payment has been calculated.

Statutory Redundancy Pay (SRP) is payable at a rate that is set by Government and is calculated by reference to weekly pay, age and length of continuous employment.

  • the weekly pay rate is capped by Government and adjusted regularly.
  • all calculations should therefore be made by using the ready reckoner supplied by the Department for Business, Innovation and Skills.

An employee does not have to make a claim to redundancy pay in order to be entitled to it. The department should arrange payment by notifying the Payroll section. The employing department must therefore complete the following steps to action payment:

  • complete a Payroll Leaver Form noting the reason for leaving as “X02 Compulsory redundancy (including expiry of fixed term contracts)”
  • send the Leaver Form to the Payroll Manager/Deputy Payroll Manager together with a memo including the amount of redundancy payment due (as calculated by the ready reckoner) and the cost centre from which the payment should be made.
  • do not send a separate payment request to Payments, as the redundancy payments will normally be made with the final pay or in the next available pay period after notification as a bank transfer payment.

In cases where an employee is accepted for voluntary redundancy, enhanced terms may apply. Departments should discuss this with HR Business Partners.  Further information can be found on Voluntary redundancy.

Employees who, on leaving University employment, receive statutory redundancy payment should not be re-employed by the University in any capacity for a period of at least four complete calendar weeks (a calendar week being judged to start on a Sunday) after the leaving date.

Employees who leave the University on enhanced, voluntary severance terms should not be re-employed in any capacity for a period of time, normally at least three months, after the leaving date, the period to be determined by the University at the time of severance. For further information contact your HR Business Partner.