Recent department for Education data confirmed one in eight local authority maintained schools were in deficit in 2022-23, the highest number on record since 1999. With the continuing squeeze on school finances including rising food, energy and unfunded wage increases, you may find yourself being forced to consider reducing your workforce and staffing costs. This can result in difficult decisions around redundancies and can be a stressful time for the school, staff, pupils and parents. So, senior leaders in schools should be fully aware of the key considerations before embarking on a redundancy process.
It is crucial that your school is clear on its current financial position and why the impact of any financial challenges may have necessitated a review of staffing. School leaders need to have a clear business case to communicate as to why there is a need for redundancies and to ensure that it is a genuine redundancy situation they are confronting.
Most commonly in schools, the need for redundancies may come about due to the following:
Advance planning is key. Before embarking on any redundancy process, it is important to have a clear, collectively owned plan that follows employment law requirements and your own policies and procedures with appropriate timescales set out. We always recommend taking legal advice as early as possible so you are well informed and legal requirements are built into the plan.
To minimise successful claims of unfair dismissal (for employees with two or more years of continuous service), not only is it important to ensure there is a genuine redundancy situation, but that a fair procedure must be carried out.
The appropriate process will depend on the numbers involved but, as a minimum, this will include individual consultation. Where 20 or more individuals are involved, you will need to undertake both collective (see below) and individual consultation. Collective consultation will include consultation with trade unions (where recognised for this purpose) or with elected employees appointed via specific statutory rules that apply.
Where possible, objective redundancy selection criteria should be used which are capable of independent verification and supported by records such as HR documents; they must not discriminate against employees. Criteria should be measurable rather than based on personal opinion. It is reasonable for an employer to attach weightings to particular criteria reflecting their importance to the role so long as the weightings can be justified and are not discriminatory.
A redundancy process can affect staff morale and retention. Consider what support might be put in place for staff both at risk and not; for example, these could include access to senior leaders and HR and employee support programmes, plus access to counselling or medical support or outplacement services. Also, remember that employees on notice of redundancy are entitled to take reasonable time off to look for new jobs or to arrange training, some of which should be paid.
If an employee is made redundant while employed in an independent school, they will not be able to count previous service in local authority or academy employment as continuous service unless their contract of employment provides otherwise.
This is different for employees of certain public sector bodies, which include those employed in academy and maintained schools, as there is a statutory Order called the Redundancy Payment (Local Government) (Modification) Order 1999 (as amended), which covers redundancy payments. It has specific rules covering continuity of service and redundancy payments, known as the ’four-week rule’ which, in set circumstances, preserves continuity of service but means no redundancy payment is due. All school employers should be aware of these rules.
Currently, rules apply that provide that in a redundancy situation employees on maternity, adoption or shared parental leave have priority whilst on leave in respect of being offered a suitable alternative role where one exits.
New legislation, the Protection from Redundancy (Pregnancy and Family Leave) Act 2023, extends redundancy protection as follows:
Any redundancies will need to take these new rules into account.
Louise Brenlund is a Partner and Head of Employment at Warners Solicitors. If you are looking to make redundancies and would like more information, contact Louise on 01732 375325. Her email is [email protected].
