Our annual, one day conference for school leaders helps you to keep up with the pace of change and get the most out of your employees. At this year’s conference we heard from keynote speakers Nick MacKenzie and Heather Mitchell on the changing education landscape and how employment law changes affect schools and academies. Our education and HR experts also covered the post-election employment position, restructures, pay and reward, managing misconduct, strikes and work to rule, and leadership and management judgment in respect of HR. https://www.brownejacobson.com/education/services/employment-and-human-resources

1. HR conference for school leaders
Restructuring to balance the books

2. Restructuring to
balance the books or
centralise services
Tips and know how
Tom Wallace, HR Consultant, Browne Jacobson LLP
11 October 2016

3. Context:
• Our joint Leadership Survey confirms that 55% of respondents are
facing the need to make staffing reductions due to financial
pressures. Our recent webinar also indicated the same.
• Statement from the Schools’ Minister, Lord Nash:
“Education in schools has operated in a relatively benign financial
climate for a long time. But a new generation of school leaders is
going to have to emerge to cut their cloth to drive efficiencies.
This is one of the biggest challenges facing the school system:
schools will increasingly have to do more with the same money.”

4. Are you considering a restructure?

5. Session purpose:
Help you to ensure that any restructure is done in a way that:
• is legally compliant and minimises the risk of legal challenge
• considers staff morale and minimises the disruption to
teaching and learning
• complies with good practice whilst minimising prolonged
uncertainty.

6. What we will cover:
• centralised Services
• a step by step guide to a restructure
• top tips and pitfalls to avoid
• Questions.

7. Tips if restructure needed
• Consider pay protection when planning costs: three years for
teachers and typically one year for support staff if redeployed to
other roles on lower pay.
• LGPS members who are 55 or over must access their pension if
made redundant and the employer must meet the cost of pension
strain – get costs in advance.
• Check your funding agreement as the EFA may fund redundancies
(in some but not all cases).
• Check your policy to see if you offer enhanced payments.

8. Centralised services

9. Centralised services
• Consider HR, Finance and IT.
• Can bring significant time savings, removing inefficiencies
generated by completing the same task at each academy.
• Can ensure greater consistency and accountability. Can also
eliminate any areas of non-compliance with the Academies
Financial Handbook and the MATs own financial guidelines.

10. HR
• One of the main benefits of a centralised HR approach will
be the consistency in delivery and implementation of HR
policy and procedure.
Task Transfer to the MAT
Advice and Guidance Yes
HR Policies Yes
HR Support to Staff Yes
Induction of new staff No
Monitoring leave and overtime Yes
Payroll – Changes Yes
Payroll – Income Tax Yes
Payroll – NI Yes
Payroll – Pensions Yes
Payroll – Processing Yes
Pre-employment checks Yes
Recruitment Yes
Sickness absence monitoring Yes

11. Finance
Task Transfer to the MAT
Acquiring additional funding Yes
Banking and Cash Management No
Budget Management Yes
Budget Setting Yes
Contract Management Yes
EFA Reporting Yes
Financial Accounting Yes
Financial Reporting Yes
Financial Strategic Plans Yes
Implement Financial Handbook Yes
Internal Audit Yes
Investments Yes
Invoices and Payments Yes
Maintenance of PSF Yes
Management of School Finances Yes
Month End Processing Yes
Ordering No
Procurement Yes
Year End Processing Yes
Year End Reporting Yes

12. IT
• Combine on-site support and remote support.
• Consider external ICT Support Organisations.

13. A step by step guide
to a restructure

14. Planning
• Do not underestimate the importance of planning.
• Start before you are facing a deficit and use any surplus
wisely.
• Staffing levels and structure should be determined by:
• curriculum plan
• student numbers and demographics
• class sizes
• income
• SLT structure and distributed leadership.

15. Considerations
Secondary schools are critically evaluating:
• breadth of curriculum and whether sustainable
• class sizes and whether small KS5 classes can run
• free periods in excess of PPA and discontinuing instead or
before redundancies
• seeing through those students already doing GCSEs can be
expensive so plan ahead
• size of SLT and role/impact of middle ‘leaders’
• SLT teaching allocation.

16. Timeframe
• Consider contractual notice periods:
- teachers – October, February and May
- support staff – no specified dates.
• If restructure involves teachers - work back from the notice
dates and ensure steps in policy including dismissal meetings
happen in time.
• Don’t forget half term – exclude for the purpose of the
process.
• Contingency for slippage of dates.

17. Timeframe - example
Action Date
Trade Union Officials notified w/c 5 January 2016
Formal announcement staff meeting 12 January 2016
Individual Consultation Meetings w/c 19 January 2016
Consultation Ends 27 February 2016
Selection Process Begins 9 March 2016
Outcome of selection process communicated 17 April 2016
Formal dismissal meetings w/c 5 May 2016
Appeals (if applicable) June 2016
Outcome of Appeals (if applicable) June 2016
Termination Date 31 August 2016

18. Top tips
Timings:
• don’t forget relevant notice for dismissal hearings –
normally five working days – can be up to 10 days in
policy
• agree hearing and appeal dates with unions at the
outset to ensure availability if possible.

19. 20 or more redundancies
• HR1 Form – must be completed if 20 or more staff are at risk
– if you miss their notice periods you cannot make any
redundancies.
• Consultation periods are longer if 20 or more redundancies
within a 90 day period

20. The business case
• Summarises the case for the restructure and who and how
staff are affected.
• The enabling process should be included; along with a
timeline.
• Include current and proposed organogram and financial
implications.
• Send to trade unions.
• Staff also receive a copy – including absent staff.
• This forms the basis of consultation.

21. The business case
Proposal and numbers and type of staff affected:
• Direct match
If a role in the new structure is considered very similar to the
current role and there are sufficient or excess posts for people,
then it will be deemed to be a direct match. As a result the post
will not be opened up for applications.
• Ring-fencing
Ring-fencing applies where the number of people exceed the
number of the same type of post e.g. Maths Teacher.
All staff at risk of redundancy should have the opportunity to be
considered for new or vacant posts in the structure.

22. The Business case
• Justification for each staff area/position:
- e.g: There is no longer the need for the same number of
finance officers. This is because of the improved efficiencies
and benefits of PS Financials – the new accounting system
which has the ability to e-mail receipts, invoices and
statements as PDF files and an improved bank reconciliation
process and more efficient reporting.
• Need to demonstrate either a reduced or diminished need
for the work in order for there to be a fair redundancy
reason for dismissal.

23. Top tip
• Staff want to know how they are potentially affected and
what their options are - ensure this is as clear as possible to
minimise uncertainty and have meaningful consultation.

24. Consultation
• Timing – statutory or policy.
• One-to-one meetings (notes taken) with employee and rep
(if applicable).
• Have redundancy figures ready and decide in advance about
any enhancements for volunteers.
• Staff can raise very genuine points/proposals during
consultation which may alter the new structure – that is the
point of consultation.

25. Pools
• The business case details who is deemed to be in each pool.
• Give thought to this and don’t rely on job titles.
• Seek advice and don’t have favourites.

26. Question:
Question
If you need to reduce by one ICT Technician
would you pool all Technicians?

27. Selection criteria
• Consult on the proposed method and criteria by including in
the business case.
• How will you select for redundancy?
- Interview
- Scoring/skills matrix
• Declaration of interest form if staff can apply for more than
one role

28. Top tips
• Best practice is to have a panel of three scorers or
interviewers.
• If using attendance must exclude maternity and disability
related absences.

29. Voluntary redundancy
• During any restructure Voluntary Redundancies (VR) should
be offered as this will reduce the number of compulsory
redundancies.
• Must state they will be accepted on an individual and case
by case basis ensuring the needs of the school and pupils are
met.
• Can incentivise by paying in lieu of notice. Avoid enhancing
financially and be consistent.

30. Redundancy payments
• Statutory or enhanced – check policy and previous
precedents.
• Ensure calculations have been run for all at risk staff in
advance.
• Support Staff in the LGPS who are over 55 and under 60 are
entitled to have their pension ‘topped’ up – big additional
cost.
• Ensure continuous service is correct and ask whether
previously made redundant (this breaks service).

31. Support for displaced Staff
• Suitable alternative roles in other Academies if a MAT
• Paid time off for interviews
• Support with interview tips/c.v
• Time to access support from trade union
• Be aware some staff may not have applied for a job in a
number of years.

32. The Modification Order
• Staff either receive redundancy pay and lose continuous
service or keep continuous service and pay back redundancy
pay.
• If staff are made redundant with effect from 31 August they
cannot start a new job in a school (or body covered by the
Modification Order) on 1 September, unless they pay back
their redundancy pay.

33. Any questions?

34. Further information
Brownejacobson.com/education

35. Contact us
Tom Wallace
+44 (0)20 7871 8513
tom.wallace@brownejacobson.com
visit our education portal brownejacobson.com /education
Please note
The information contained in these notes is based on the position at March 2016 . It does, of course, only represent a
summary of the subject matter covered and is not intended to be a substitute for detailed advice. If you would like to discuss
any of the matters covered in further detail, our team would be happy to do so.
© Browne Jacobson LLP 2016. Browne Jacobson LLP is a limited liability partnership.