Redundancy Policy

About this Policy

This policy sets out the Society’s approach to dealing with potential redundancies in a way that is consistent with our DOES values.

The Society will always try to avoid the need for compulsory redundancies but recognises there may be circumstances where colleague requirements change, and compulsory redundancies cannot be avoided.

Whenever reduction in colleague numbers may become necessary, the Society will:

• Consult with colleagues and, where appropriate, their representatives on any proposals and their implementation. 
• Undertake any selection for compulsory redundancy fairly, reasonably and without discrimination. 
• Explore ways of avoiding compulsory redundancies. 
• Communicate clearly with all affected colleagues and ensure that they are treated fairly.

This policy applies to all colleagues (whether employed on a full-time, part-time, fixed term or permanent basis). It does not apply to agency workers or self-employed contractors.

This policy does not form part of any colleague’s contract of employment and we may amend it at any time.

 

Individual Consultation

When it is not possible to avoid making compulsory redundancies, we will consult with the affected colleagues at the earliest opportunity. This is known as individual consultation and its purpose is to consult fully with each affected colleague to explain the potential impact on them.

We will also notify USDAW (our recognised trade union) of the proposed redundancies before the consultation commences. Where 20 or more colleagues are proposed to be dismissed at one of our locations, we will also consult on a collective basis (see Collective Consultation).

The duration and number of meetings for individual consultation will depend on the circumstances, but we usually aim for 3 formal meetings; one at the start, one in the middle of the consultation period, and one at the end of consultation.  We commit to ensure that full and meaningful consultation takes place with all affected colleagues. Where a colleague is placed at risk of redundancy, we will ensure that:

• The reasons for the proposed redundancy are explained in writing.
• Where selection criteria is being used we will agree that with USDAW before selection takes place and the criteria will be explained to colleagues who are impacted.
• Full and meaningful consultation takes place with the colleague in the form of redundancy consultation meetings.
• Impacted colleagues are given the opportunity to put forward any alternative suggestions to the proposal
• That alternatives to redundancy (including other vacancies in the Society) are fully considered.
• The amount of any redundancy payments is explained.
• Colleagues are given the right to attend formal consultation meetings with a Trade Union representative or work colleague.
• If redundancy is confirmed, colleagues are given a right to appeal.

 

Collective Consultation

Collective consultation takes place where we propose to make 20 or more redundancies at one of our locations (e.g. a store or office) within a 90-day period. 

Collective consultation will be carried out with USDAW and is in addition to individual consultation (they run side by side); the duration depends on the numbers of affected colleagues. Where the number of proposed redundancies is between 20 and 99 colleagues, the collective consultation will start at least 30 days before the first redundancy dismissal takes effect. Where 100 or more redundancies are proposed, consultation will start at least 45 days before any redundancy dismissals take effect. 

The purpose of collective consultation is to provide USDAW with adequate information so that both sides can agree the consultation process, including any ways of reducing the potential number of redundancies. 

 

Outplacement Support

Outplacement support is assistance provided to colleagues who have been placed at risk of redundancy, to assist them in finding a new job. The support may, for example, consist of assistance with CV writing and preparing for job interviews. 

The specific outplacement support for individuals will be agreed during the consultation period and USDAW informed.     

Colleagues can also access the following websites for external support:- 

• https://nationalcareers.service.gov.uk/careers-advice/cv-sections
• https://nationalcareers.service.gov.uk/careers-advice/interview-advice 

 

Suitable Alternative Employment 

There are two types of alternative employment in redundancy situations.  The first is suitable alternative employment, the second is alternative employment.  During the consultation process colleagues will be made aware of internal vacancies and whether they are considered suitable alternatives, or alternative roles (the assessment of suitability will differ for individual colleagues). 

An application and/or selection process may, or may not be required, depending on the circumstances.  These will be explained during the consultation process. 

Please note: if a colleague unreasonably refuses an offer of suitable alternative employment, they may lose their right to redundancy payments. 

If a colleague is on maternity leave, adoption leave or shared parental leave during the consultation period, or is within 18 months of giving birth, adopting, or taking shared parental leave; different statutory obligations apply with regards preferential selection for alternative employment.  Given the complexity of these obligations and how they relate to individual circumstances, these cannot all be outlined in this policy, but will be discussed with colleagues during the consultation process.   

Colleagues who have been placed at risk of redundancy will be entitled to take a reasonable amount of paid time off work to attend interviews for external vacancies. Colleagues wishing to take advantage of this should speak to their line manager. 

 

Notice

Where a colleague’s redundancy cannot be avoided, they will be given written notice of redundancy in accordance with their contract. The Society will consider if colleagues are required to work all or part of their notice or if they will be paid in lieu of it (PILON).  Payment in lieu of the notice will mean that the colleague will receive a lump sum payment equivalent to the required worked notice.  The requirement to work notice or be paid PILON will depend on the relevant circumstances of the redundancy. PILON will be subject to tax and NI deductions.  Colleagues will be informed during the consultation period, which will apply to them. 

PILON will include car allowance (or equivalent) and employers pension contributions; all other benefits/allowances/holidays will not be paid for the PILON period. These will cease on termination date 

Colleagues who are paid in lieu of notice, will have pension contributions deducted from the notice pay.  Where colleagues receive a car allowance payment, this will be pro rata for the equivalent notice period time and paid in the final pay.  All other contractual benefits would cease at the point of termination, including salary sacrifice schemes.  

Where a colleague is working their notice period and secures external employment, which starts before the end of their notice, the Society will, where possible, agree an earlier termination date.    Any redundancy payments or PILON will be recalculated for the newly agreed dismissal date.  This will be subject to the colleague’s early release not negatively impacting on the Society’s business requirements. 

Any colleague who does not work their full notice period may be subject to additional tax and NI deductions on the enhanced element of their redundancy pay due to Post Employment Notice Pay (PENP).

Notice pay, whether worked or paid as a PILON will be taxable in the usual way.

 

Redundancy Pay

If, at the end of the consultation process the colleague is confirmed as redundant, they will be given formal notice of termination of their employment due to redundancy. Colleagues will receive written confirmation of the redundancy payment they will receive. The final redundancy payment and holiday entitlement will be calculated as at the last day of employment. Holiday pay is explained further below. 

The Society’s enhanced redundancy calculation is based on the government’s statutory calculator (known as the ready reckoner). The statutory calculator gives a multiplier based on the colleague’s age and complete years of service. The Society uplifts the statutory multiplier by 50%. For the purpose of the calculation, weekly pay is uncapped.

The enhanced redundancy matrix sets out the multiplier based on age and length of service. This gives the number of weeks basic pay that the colleague would receive. Please note: the length of service is capped at 20 years, for example if a colleague has worked for the Society for 23 years, they will receive redundancy pay calculations for 20 years.

All Society colleagues will qualify for an enhanced redundancy payment.  Under the statutory redundancy obligations, colleagues with under 2 years’ service would not be entitled to a redundancy payment.  Under the Society’s enhanced redundancy payment policy, colleague’s with under 2 years’ service (as at the last day of employment), will receive 2 weeks contractual pay.

All Society enhanced redundancy payments are made inclusive of statutory entitlement. Redundancy pay is based on a colleague’s gross basic pay. Any redundancy pay under £30,000 is not taxable. 

 

Holiday Pay

Colleagues who are made redundant will also be entitled to receive a payment in respect of any accrued but untaken holidays. Holiday pay will be calculated up to the colleagues last day of employment.  

Where a colleague has taken holidays in excess of their accrued entitlement, a deduction will be made from the final payments owed to the colleague. 

Colleagues may be required by their line manager to take any accrued holidays during their notice period. Where the Society makes a payment in lieu of notice (PILON), holidays will be calculated up to the last day worked, and the period of any PILON will not count towards holiday accrual.    

 

Benefits

Where a colleague has 20 or more years’ service and is made redundant, they will be entitled to retain the colleague discount on their membership card for a period of 12 months. For all other colleagues, the Food colleague discount will end on their last day of employment. 

Where a colleague has a child in one of our nurseries, we will honour the colleague discount for 12 months from the date of termination regardless of length of service.  The discount will not be extended to any sibling who has not yet started the nursery.  If the colleague has salary sacrifice arrangement this will end at the point of termination.  It is possible that colleagues can take advantage of the salary sacrifice arrangement if paid in lieu of notice and this should be discussed as part of the consultation. 

Where a colleague has booked a holiday through Coop Travel before the announcement of proposed redundancy and the final balance is due after the colleague has left due to redundancy, the colleague discount will still be applied to the original booking but would not be applied if further bookings are made after the announcement of the redundancy. 

If a colleague is eligible to claim for professional memberships, and the fee’s are due before the date of termination, the society will pay any renewal due prior to the last day of employment.  

For long service and retirement voucher benefits which are issued based on years service, the vouchers will only be issued if the eligible service is achieved before the date of termination. 

If a colleague is eligible, thank you vouchers which are normally issued in July 2024 will still be issued. 

Please note, for benefits, discounts and professional memberships, the date of termination is the last day of employment, regardless of the length of notice worked.   

All other discounts and benefits will also cease at the point of termination of contract.

 

Other Benefits

Where a colleague is made redundant, any other benefits (such as Society car, allowance or bonus entitlement), will be treated in accordance with the terms of the colleague’s contract/relevant scheme. This will be discussed with the colleague during the consultation.

 

Returning to Work for the Society

Where a colleague is made redundant and wishes to return to the Society within 26 weeks of their redundancy taking effect (i.e. their last day of employment), the Society may request that the colleague pays back the enhanced element of their redundancy payment. Where the colleague returns after 26 weeks no such payments will be recovered. 

 

Appeals

Redundant colleagues may appeal against the decision to dismiss by reason of redundancy.  Redundant colleagues will have five working days from the date of the confirmation of redundancy letter to lodge an appeal, setting out the grounds of the appeal, in writing to the person named in the redundancy confirmation letter.

 

The Society will arrange for an appeal meeting to be conducted. The colleague will have the right to be accompanied by a work colleague or trade union representative at the appeal meeting. The outcome of the appeal meeting will be notified to the colleague in writing as soon as possible and will be final.

 

Additional Support

We understand that redundancy situations cause stress and feelings of insecurity. If you are concerned about your wellbeing or that of a colleague, you should speak to line manager in the first instance. 

There are resources available on colleague connect to support your mental health and wellbeing:-  https://colleaguesconnect.midcounties.coop/working-here/mental-health--wellbeing/

We also recommend the external support and information available at:

• https://www.groceryaid.org.uk/ for free, confidential online and telephone information and advice for financial, emotional and practical support
• www.acas.org.uk/redundancy, for free online and telephone information and advice on employment law issues; and
• www.gov.uk/redundancy-your-rights, for free information from the government on employment law and rights.

USDAW members can access support by speaking to an USDAW representative or by visiting the website:- https://www.usdaw.org.uk/ 

If you have any questions regarding this policy or require additional support, you can contact the HR advice line (hr.advice@midcounties.coop).

Redundancy Matrix