Agenda item

Report of the Head of HR and OD. 

The Head of HR and OD submitted a report that sought the Committee’s approval on a set of agreed principles for the management of organisational change and the related policy amendments in connection with these. 

The Council is embarking on a period of organisational change due to Outcome Based Resourcing (OBR) decisions taken to address the budget deficit. The budget decisions for 2023/2024 will have staff implications and therefore the processes and procedures that guide the management of change have been reviewed to ensure that they are robust and fit for purpose.

A great deal of work has been undertaken in conjunction with Members and Trade Unions to ensure that the organisation is prepared as we embark on organisational change, and this work is described in section 2.0 of the report. In addition to existing policies which relate to organisational change, it was also agreed to formalise a set of key principles for management of change. This ensures clarity for all and means that any future restructuring is done so in a consistent, fair and transparent manner.

There are two policies which are relevant in managing organisational change;

The Council’s Early Termination of Employment Policy

The Council’s Redeployment Policy.

Personnel Committee are asked to comment on the approach to management of restructuring and organisational change and approve the key principles document.

Thereafter, Personnel Committee are asked to consider and approve the proposals made to the Redeployment Policy and the Early Termination Policy.

The amendments to the policies were set out in the report as follow:

Proposed amendment as follows to the section 1 of the Redeployment Policy:

‘It is not intended that this Policy will apply to employees who apply for voluntary redundancy. Nor will the voluntary redundancy scheme be available to an employee who has sought redeployment under this Policy. Should employees wish to be considered for voluntary redundancy, but also be considered for redeployment as an alternative to redundancy, they should speak to their manager ‘

Proposed amendment as follows to the section 8 of the Redeployment Policy:

‘If at the end of their redeployment period the employee has been unsuccessful in obtaining alternative employment within the Council, their employment will terminate on compulsory redundancy grounds, unless otherwise agreed earlier in the process.’ 

Proposed amendment as follows to section 10.8 of the Early Termination Policy:

The terms of the Redeployment Policy will not apply to any employee who applies for VR and does not express an interest in redeployment. Further, an employee who has unsuccessfully sought redeployment in a redundancy situation will not subsequently be eligible to apply for voluntary redundancy.

Re- employment of Chief Officers

            A review of relevant policies and procedures has also led to the proposal that section 17 of the Early Termination Policy is re-worded. This currently states:

Re-employment with Lancaster City Council

17.1     Any employee, up to and including Chief Officer, who:

·       was dismissed on redundancy grounds, and has received a voluntary (enhanced) redundancy payment, or

·       has received any payment in relation to the termination of their employment

may be considered for re-employment by the Council after a period of one calendar year has elapsed since the date of termination of employment.

Proposed amendment as follows to section 17.1 of the Early Termination Policy:

It is the Council’s policy not to re-employ any Chief Officer who was previously made redundant from the authority, or later engage them under a contract for service or interim contract except under exceptional circumstances.

Any employee, up to and including Chief Officer, All other employees, who:

·       were dismissed on redundancy grounds, and have received a voluntary (enhanced) redundancy payment, or

·      have received any payment in relation to the termination of their employment

may be considered for re-employment by the Council after a period of one calendar year has elapsed since the date of termination of employment.

This is proposed on a value for money basis.

The Committee was also informed of consultation undertaken with the JCC.  Trade Union representatives had sought clarification on the wording of the key principles to ensure both employees and unions are referred to in reference to consultation. 

It was moved by Councillor Mel Guilding, seconded by Councillor Paul Stubbins and agreed as follows. 

Resolved: -

(1)          That Committee approves the appended document outlining the principles that will be applied to organisational change to ensure consistency and bring clarity on how organisational change will be managed throughout the Council.

(2)          That, after the agreement of these principles, the committee approves the suggested changes to the related policies and procedures which have also been reviewed in line with the principles document.