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1.1 Explain the legal requirements that relate to the management of redundancy

Unit 29: Manage Redundancy and Redeployment

Unit reference number: M/506/2044 QCF level: 4

Credit value: 6

Guided learning hours: 39

Unit type: Competence

Unit summary

There will be occasions when a business will need to close, reorganise or relocate some of their business activities and the impact of these changes may result in the need to reduce their staffing levels or redeploy staff in other areas of the business. If there is a decline in customer demand for the products or services a business may need to reduce costs or sell their business and this could again result in the need to reduce staffing levels or to redeploy staff in different job roles.

In this unit you will learn how to manage the redundancy and redeployment processes. You will gain an understanding of the legal requirements that relate to both the redundancies and redeployment processes, and the steps that must be followed to ensure that these processes are fair and non-discriminating. You will learn the impact that redundancies and redeployment can have on both individuals and the organisation, and gain an understanding of the information and guidance that needs to be available for employees who will be retained and those who will be made redundant or redeployed. This unit will provide the opportunity for you to manage both the redundancies and redeployment processes.

Learning outcomes and assessment criteria

To pass this unit, the learner needs to demonstrate that they can meet all the learning outcomes for the unit. The assessment criteria outline the requirements the learner is expected to meet to achieve the unit.

Unit 29: Manage Redundancy and Redeployment

Learning outcomes

Assessment criteria

1 Understand the management of redundancy

1.1 Explain the legal requirements that relate to the management of redundancy

1.2 Explain the conditions required for a redundancy and their implications

1.3 Explain possible ways of avoiding redundancies

1.4 Explain the factors involved in identifying the pool for redundancy selection

1.5 Explain the factors involved in developing an appeals process

1.6 Explain the process for planning and managing a redundancy

1.7 Evaluate the implications of voluntary and compulsory redundancy on individuals

1.8 Evaluate the implications of voluntary and compulsory redundancy for organisations

1.9 Evaluate the type of information required by staff who are retained

1.10 Evaluate the type of information required by staff who are made redundant

1.11 Assess the role of outplacement in redundancy

Learning outcomes                                      Assessment criteria

2  Understand the principles of redeployment

2.1 Explain the concept of redeployment

2.2 Explain the legal requirements that relate to the management of redeployment

2.3 Explain the process for planning and managing a redeployment

2.4 Evaluate the type of information required by staff who are retained

2.5 Evaluate the type of information required by staff who are redeployed

2.6 Evaluate the benefits and limitations to an organisation of redeployment

2.7 Assess the role of project management techniques in the management of redeployment

3 Be able to manage a redundancy

3.1 Evaluate the available options for avoiding a redundancy and their implications

3.2 Develop a redundancy plan and timetable that addresses redundancy objectives

3.3 Take action to ensure that redundancy payments are calculated accurately

3.4 Use an appropriate method for communicating the outcome of a redundancy decision

3.5 Make agreed support services available to those who have been made redundant

Learning outcomes

Assessment criteria

4 Be able to manage the redeployment of staff

4.1 Explain to redeployees the reasons, purpose and benefits of redeployment

4.2 Develop a redeployment plan that addresses agreed objectives

4.3 Use an appropriate method for communicating about redeployment

4.4 Make agreed support services available to those being redeployed

4.5 Adhere to organisational policies and procedures, legal and ethical requirements for the redeployment of staff

Unit amplification: Unit 29: Manage Redundancy and Redeployment

AC1.1: Explain the legal requirements that relate to the management of redundancy
  • Employment Law: the impact of current UK legislation on the redundancy process; the impact of EU legislation on the redundancy process; appropriate procedures implemented; implementation of a fair and non-discriminating process
  • Reasons for redundancy: closure of the organisation; need to cut expenditure by reducing staff numbers; change in business activities; external factors; introduction of new technology; employees do not have relevant skills and knowledge
  • The redundancy process: criteria for selecting job role; criteria for selecting staff for redundancy
  • Implications: maintain efficient service with reduced staffing levels; impact on retained staff; impact on morale and motivation; impact on reputation
  • Ways to avoid redundancies: natural wastage; early retirement; using current employees to fill any vacancies; training or retraining; reducing hours or overtime; limiting the recruitment of permanent employees; reducing the use of temporary or agency staff; redeployment to a different location
  • Process for selecting employees: fair; non discriminating
    • Selection process: last in, first out; volunteers; review of disciplinary records; skills, qualifications and experience
    • Organisation process and procedure: informing employees of appeals process: timeframe for appeals; representation; refusing the appeal; upholding the appeal; informing employee of the outcome
    • Benefit for organisation and employees: opportunity to resolve issues early; identifies and deals with complaints; may reduce the need for a tribunal; awareness of employee reactions
      • Planning the redundancy process: informing managers or team leaders; notifying and consulting with all employees; selecting staff for redundancies; informing employees of notice periods and payments; providing the opportunity for staff to appeal
      • Steps in the redundancy process: consultation with employer e.g. sharing of information, involvement of unions or representation; redundancy pay e.g. statutory redundancy payments, minimum service time; notice period; time off to search for a new job; appeals process e.g. organisational process and procedure
      • Managing the redundancy process: effective communication skills; knowledge of current legislation; complying with organisational process and procedures; psychological impact e.g. illness and stress, staff morale and motivation
      • Compulsory: no choice; forced to leave job role; formal selection process
      • Voluntary: choice; avoids selecting employees for compulsory redundancy; incentives; less stressful; opportunity for career change or retraining
      • Implication of redundancy: loss of regular income; potential of finding new employment; impact on home life
      • Psychological impact of compulsory redundancy: impact on employees and colleagues; impact on morale, motivation and self- esteem; stress
        • Implications of redundancy: loss of skills, knowledge and expertise; structural changes; change in job roles and responsibilities; effective management of moral and motivation of retained employees
        • Impact on retained employees: lower morale; decrease in motivation; emotional; uncertainty of future; additional or change in work tasks
          • Type of information required: any change in job role or responsibilities; future for the organisation; job security
          • Type of information: selection process; notice period; payments; timescale involved; impact on pension; holiday entitlement; information on claiming benefits; references for potential job roles; appeals process; contact details for union representation; support available
          • Outplacement: range of provision and support available; benefits for organisation; benefits for individuals
          • Redeployment: definition; reduces the need for redundancies; reasons for redeployment e.g. decline in one area of the business, end of a fixed term contract, a change in individual circumstances such as illness
          • Employment Law: the impact of current UK legislation on redeployment; the impact of EU legislation that requires organisations to take an active approach to redeployment
          • Planning redeployment: matching vacancies to individual employee skills, knowledge and expertise; consultation with employee; outline of job role and responsibilities; revising and reviewing the employment contract to account for changes; offers in writing; acceptance or rejection of job offer
          • Managing redeployment: effective communication skills; knowledge of current legislation; complying with organisational process and procedures
          • Type of information required: changes in job role or responsibilities; changes in pay structure, incentives and bonuses; impact on contract and pensions; changes in working hours and holiday entitlement; future for the organisation; job security
          • Type of information required: new role; job role and responsibilities; position in organisational structure; authority and accountability; terms on offer; skills, knowledge and experience required for job role; pay and bonus rates
          • Benefits of redeployment: reduces the need for redundancies; retains valuable skills, knowledge and experience; no redundancy payments; removes costs and time involved in the recruitment and selection of staff to fill vacancies; reduces the time spent on induction and training; increase in employee commitment and loyalty
          • Limitation of redeployment: no opportunity to access new skills and knowledge; retraining of existing employees; retaining employees with average performance
          • Project management techniques: e.g. project work plans; charting e.g. Gantt Load; analysis e.g. PERT, critical paths; risk management logs; dependencies, responsibilities
AC1.2:     Explain the conditions required for a redundancy and their implications
AC1.3:     Explain possible ways of avoiding redundancies
AC1.4:     Explain the factors involved in identifying the pool for redundancy selection
AC1.5:     Explain the factors involved in developing an appeals process
AC1.6: Explain the process for planning and managing a redundancy
AC1.7: Evaluate the implications of voluntary and compulsory redundancy on individuals
AC1.8: Evaluate the implications of voluntary and compulsory redundancy for organisations
AC1.9: Evaluate the type of information required by staff who are retained
AC1.10: Evaluate the type of information required by staff who are made redundant
AC1.11: Assess the role of outplacement in redundancy
AC2.1: Explain the concept of redeployment
AC2.2: Explain the legal requirements that relate to the management of redeployment
AC2.3: Explain the process for planning and managing a redeployment
AC2.4: Evaluate the type of information required by staff who are retained
AC2.5: Evaluate the type of information required by staff who are redeployed
AC2.6: Evaluate the benefits and limitations to an organisation of redeployment
AC2.7: Assess the role of project management techniques in the management of redeployment

Information for tutors: Unit 29: Manage Redundancy and Redeployment

Suggested resources
Books

Armstrong M – A Handbook of Human Resource Management Practice (Kogan Page, 2006) ISBN 9780749446314

Gennard J and Judge G – Employee Relations (Chartered Institute of Personnel and Development, 2005) ISBN 9781843980636

Rose E – Employment Relations (FT Prentice Hall, 2004) ISBN 9780273682592

Salamon M – Industrial Relations: Theory and Practice (FT Prentice Hall, 2001) ISBN 9780273646464

Sargeant M and Lewis D – Essentials of Employment Law (People & Organisations)

(Chartered Institute of Personnel and Development, 2002) ISBN 9780852929858

Singh B D – Industrial Relations and Labour Laws (Excel Books, 2008) ISBN 9788174466204

Websites

www.acas.org.uk – the Advisory, Conciliation and Arbitration Service provides information on the redundancy process including rights, statutory payments, notice periods and consultation

www.gov.uk – the government services and information website where information can be found on being made redundant, including rights, statutory payments, notice periods and consultation

Assessment

This unit is internally assessed. To pass this unit the evidence that the learner presents for assessment must demonstrate that they have met the required standard specified in the learning outcomes and assessment criteria and the requirements of the Assessment Strategy.

To ensure that the assessment tasks and activities enable learners to produce valid, sufficient, authentic and appropriate evidence that meets the assessment criteria, centres should apply the Unit Assessment guidance and the requirements of the Assessment Strategy below.

Wherever possible, centres should adopt a holistic approach to assessing the units in the qualification. This gives the assessment process greater rigour and minimises repetition, time and the burden of assessment on all parties involved in the process.

Unit assessment requirements

Simulation is allowed for this unit and so the unit may be assessed either under real workplace conditions or in a Realistic Work Environment (RWE). Please refer to the Skills CFA Assessment Strategy for Business Administration, Customer Service and Management and Leadership, in Annexe A for further guidance on the use of simulation and RWE.

Unit assessment guidance

This guidance supports assessors in making decisions about how best to assess each unit and the evidence needed to meet the assessment requirements of the unit. Centres can adapt the guidance for learners and the particular assessment context, as appropriate.

It is possible to use simulation for this unit but evidence from the learner’s performance in the workplace should be used wherever possible. The evidence for this unit is most likely to come from a combination of learners’ work products, professional discussion or reflective accounts and witness testimonies.

Due to the cognitive demand of the assessment criteria for learning outcomes 1 and 2 the evidence would be more appropriate in the form of a reflective account or a professional discussion. If reflective accounts are used for learning outcomes 3 and 4 it would, where appropriate, be possible to integrate the assessment of learning outcomes 1 and 2. This will provide the opportunity for the learner to link and apply their knowledge to the workplace activities. For example, in a reflective account the learner could explain the possible ways of avoiding redundancies (AC1.3) and then how they evaluated the options available in their organisation for avoiding a redundancy and their implications (AC3.1).

For learning outcomes 1 and 2 the evidence could be generated in a reflective account or a professional discussion where the learner explains the legal requirements that relate to the management of redundancy and redeployment (AC1.1, AC2.2). A reflective account or a professional discussion could be used to explain the conditions required for redundancy, the implication on the organisation and the possible ways the organisation could avoid redundancies, such as the concept for redeployment (AC1.2, AC1.3 and AC2.1). The learner could also use a reflective account or professional discussion to explain the factors involved in identifying the pool for redundancy selection and the appeals process, and the process for planning and managing redundancy and redeployment (AC1.4, AC1.5, AC1.6, AC2.3). The professional discussions or reflective accounts must be in sufficient depth to satisfy the command verb of explain.

The learner could use a reflective account or a professional discussion to evaluate the implication of redundancy on individuals and the organisation and the benefits and limitations of redeployment (AC1.7, AC1.8 and AC2.6). A reflective account, professional discussion or work products could be used to evaluate the information required by staff who are to be made redundant, redeployed or retained (AC1.9, AC1.10, AC2.4 and AC2.5). Evidence could be drawn from interviews with staff but all documentation must be appropriately anonymised. A reflective account or a professional discussion could be used to assess the role of outplacement in redundancy and the role of project management techniques in the management of redeployment (AC1.11 and AC2.7). The professional discussions or reflective accounts must be in sufficient depth to satisfy the command verbs of evaluate and assess.

For learning outcomes 3 and 4, the evidence to confirm competence can either come from the learner’s performance in the workplace, where the work context allows this, or from simulation. Where simulation is used, it must be a structured exercise involving a specific task that reproduces real life situations. The simulation exercise must allow the learner to meet the requirements of AC3.1 to AC3.5 and AC4.1 to AC4.5. Assessors must be confident that the simulation replicates the workplace to such an extent that the learner will be able to fully transfer their occupational competence to the workplace and real life situations. The simulation exercise should be agreed with the learner beforehand.

For learning outcome 3 a copy of a redundancy plan, the redundancy time table, calculations of redundancy payments checked and signed by a line manager or colleague would provide evidence for AC3.2, AC3.3. Communication of the outcome of the redundancy decisions, which are appropriately anonymised, would provide evidence for AC3.4. Work products, such as communications on the support services, witness testimonies from line manager or colleagues would provide evidence for AC3.5. Alternatively a reflective account or a professional discussion could be used for AC3.5.

For learning outcome 4 communications with staff who are being redeployed, which are appropriately anonymised, could provide evidence for AC4.1, AC4.3. For AC4.1 the communication must be in sufficient depth to satisfy the command verb of explain. A copy of the redeployment plan and a witness testimony from a line manager would provide evidence for AC4.2. Work products, such as communications on the support services, witness testimonies from a line manager or colleagues would provide evidence for AC4.4. Witness testimonies from a line manager or colleagues which demonstrate how the organisation policies and procedures on legal and ethical requirements were adhered to could provide evidence for AC4.5. Alternatively a reflective account or a professional discussion could be used for AC4.4, AC4.5.

Evidence of Recognition of Prior Learning (RPL) can also be used within the unit to confirm competence. Wherever possible, the learning outcomes in this unit should be assessed holistically across the qualification

Unit 29: Manage Redundancy and Redeployment


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