When organisational change is required, due to financial restrictions, organisational requirements or changing roles, you need to be aware of any potential pitfalls and understand the likely consequences of this type of change. It's by no means an option that should be taken lightly, which is why we're outlining the main considerations for schools and multi-academy trusts when implementing a restructure.
1. STPCD pay protection
School Teachers' Pay & Conditions Document (STPCD)
Importantly, a teacher’s salary is safeguarded where your School/Trust adheres to this document.
This essentially means that you may be required to continue to pay their current salary (and could also require them to complete their current duties), for an additional three years. You'll need to check any local agreements that apply to support staff in order to determine whether they're entitled to pay protection.
2. Pension strain costs
Upon being made redundant, Local Government Pension Scheme (LGPS) members who are 55 years, or over, can automatically access their pension. This would be at a cost to the employer, so it's best advised to seek an estimate of the cost of this from the pension provider early in the process. By giving consideration to the timing of redundancy, you could potentially avoid additional costs by implementing the process earlier.
3. Exit costs
Ensure that you're aware of all possible costs and consider whether these would allow you to make the savings needed within the required period. Academy converters may still be subject to local authority policies rather than academy terms and conditions, which means that there may be higher cost payments.
4. Enhanced and statutory payments
Knowing what your own policy provides for, regarding organisational change, is an essential aspect in understanding the process.
An employee may not be entitled to redundancy pay if they have less than two years’ service, however, under the Modification Order, this may refer to two years’ service generally and not specifically at your School. The length of an employee’s notice period also needs to be considered when implementing a change. It's best practice to work back from the proposed implementation date - this way, you will ensure that employees can ideally work their notice period before redundancy takes effect.
If you’re looking for support with organisational change or would like to learn more about our model policies and letters, along with relevant training, please talk to us.
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