Re: Changes in Severance Terms

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    shergar001 shergar001 is offline Junior Member
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    Default Re: Changes in Severance Terms

    I work for a local authority and I am about to be made redundant.

    Last year the Council approved changes in the Council's Redundancy Payment Scheme but without the collective agreement of the trade unions.

    The main proposal approved was to reduce severance payment terms for redundancy from 3 weeks to one and a half for every years completed service - effectively a 50% cut. The changes were approved to take effect as from 30th April 2010.

    I have recently received an estimate of my severance payment and this has been calculated on the basis of 16 years completed at one a half weeks being 24 total weeks.

    As this effectively represents the Council making an unilateral change to an existing employee's terms and conditions of employment, can such a change be applied retrospectively?

    I would have thought that the reduced severance terms could not be applied to completed years service prior to 30th April 2010 but only to any completed years service after the 30th April 2010. In other words any years service completed before 30th April 2010, should be calculated on the basis of 3 weeks and not one and a half and not as indicated in the estimate received.

    Regards
    Andrew R.

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    Atlas01 Atlas01 is offline Junior Member
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    Unfortunately although i see you've put consideration into your argument it simply doesn't work that way, yes you can argue it's a change of contract imposed on staff without agreement of the collective bargaining side but it is something they can do

    No union would agree this so therefore the authority imposes it, the union then has two recourses

    1) Through the courts
    2) Industrial Action
    2 and a bit) Note it, not like it but do nothing

    Neither will be pursued because unions know their members are not willing to give money back to their employer by means of striking at the moment and legally there isn't a god dam thing they can do on this.

    I've taken much advice over this as many LA's are doing this, it came back quite simple, LA employers still offer in the eyes of the law extremely beneficial redundancy packages when you add to it notice time and redeployment before people are actually made redundant. In addition I'd assume if you are redeployed you will be on some form of pay protection arrangement for a considerable time (in the eyes of a tribunal)

    Add these together and the employer in court would agree a fair change of conditions under (SOSR) some other substantial reason, with financial pressure (30-40%) central government grant reduction, generous package for redundant staff every opinion i got said they would win easily

    Even though the local government act still states an employer can offer up to 104 weeks pay in this situation it carries no responsibility for any to do so.

    The cherry i forgot to add to the top was it's also public funds meaning another strong argument to add for them as it will still annihilate most private sector provision in this area

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    I regret to say - I agree.

    Certain and several parties to the Coalition appear, at least publically, to haved failed to spot several clear electoral signs last week. If you wish to complain about imposed changes in the public sector, the adddress is "Nick Clegg c/o The Tories...."


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    shergar001 shergar001 is offline Junior Member
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    Thanks for the responses.

    However I do think that public sector staff should be treated no differently from other staff generally. I merely referred to the point that changes were made without trade union agreement as it is accepted that local authorities, being employers of relatively large numbers of staff, would seek to make changes in terms and conditions of employment through trade union consultation and agreement rather than seek such agreement with individual members of staff.

    Notwithstanding the fact that acting to reduce severance payments in advance of the need to make staff redundant is somewhat cynical, the fundamental point here is whether such changes can be implemented retrospectively.

    For example, there has been much debate in relation to the public sector in making changes to what are seen as being the very generous final salary pension arrangements as compared with the usually defined pension benefits that are increasingly applied in the private sector. Indeed in recent times, I have noted some changes in the local government pension scheme. However such changes have not been implemented retrospectively in that previous entitlement prior to the imposition of change has been protected.

    Arguably therefore this may set a precedent in itself as it would not appear not to be reasonable for some changes to be applied retrospectively and some not.

    I would be interesting if anyone has any further views on this as I am sure that there must be some restriction as to when changes in terms and conditions can be applied retrospectively.

    I would add, as I have some experience in this regard in a professional capacity, that I have also raised a query with the Council concerned as to whether an Equality Impactment Assessment was carried out as part of the report made to members in making their approval.

    By way of a separate argument, if such an EIA was not carried out, it could be further argued that approving such changes would impact more significantly on older employees particularly those of long service and that consequently due regard should have been made by elected members as part of their decision?

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    Quote Originally Posted by shergar001 View Post
    Thanks for the responses.

    However I do think that public sector staff should be treated no differently from other staff generally. I merely referred to the point that changes were made without trade union agreement as it is accepted that local authorities, being employers of relatively large numbers of staff, would seek to make changes in terms and conditions of employment through trade union consultation and agreement rather than seek such agreement with individual members of staff. You have answered your own point. They woulld seek to make changes with agreement. It is not compulsory that they do. They failed to reach agreemnet wit the unions (at the moment they seldom do). So what are you going to do about it? Because your union now needs you. To take industrial action to proect your conditions. The numbers of staff in a workpace have nothing to do with anythiing - the power of a union depnds on the members willingness to fight for their conditions.

    Notwithstanding the fact that acting to reduce severance payments in advance of the need to make staff redundant is somewhat cynical, Cynical it may be - unlawful it is not. Join half of the rest of the public sector - this is realitythe fundamental point here is whether such changes can be implemented retrospectively. They aren't being imposed retrospectively. The changes were made then - you are redundant now.

    For example, there has been much debate in relation to the public sector in making changes to what are seen as being the very generous final salary pension arrangements as compared with the usually defined pension benefits that are increasingly applied in the private sector. Indeed in recent times, I have noted some changes in the local government pension scheme. However such changes have not been implemented retrospectively in that previous entitlement prior to the imposition of change has been protected. Not entirely true - and totally irrelevant. The point in question is not the pension scheme - it is your authorities redudancy scheme.

    Arguably therefore this may set a precedent in itself as it would not appear not to be reasonable for some changes to be applied retrospectively and some not. Not arguably in law.

    I would be interesting if anyone has any further views on this as I am sure that there must be some restriction as to when changes in terms and conditions can be applied retrospectively.

    I would add, as I have some experience in this regard in a professional capacity, that I have also raised a query with the Council concerned as to whether an Equality Impactment Assessment was carried out as part of the report made to members in making their approval. Impressive. Really?. A whole question about a non-statutory impact assessment? Wow. Compared to 30 + years as a barrister in employment law (me) and a similar backgraound for Atlas in public sector unions. Knock yourslef out mate!

    By way of a separate argument, if such an EIA was not carried out, it could be further argued that approving such changes would impact more significantly on older employees particularly those of long service and that consequently due regard should have been made by elected members as part of their decision?
    EIA' must be carried out - and they are almost entirely irrelevant rubbish meant to give members with nothing better to do something to do. I concur with Atlas' advice to you. I regret that I do. And no it isn't nice or "fair" - but it is lawful and you have no chance of challenging it on these grounds. I really am sorry - I am seeing the public sector decimated before my eyes and I hate it. But this is not the way to stop it.


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