Compulsory Redundancy Policy

​​​​​​​​​​​​​​​​​​​​​Introduction

This document comes in 2 parts.

Part 1 sets out the Jersey Public Services policy and principles regarding compulsory redundancy.

Part 2 provides the procedure, setting out how to implement the policy with links to toolkit items to give you more information. The procedure is intended as a guide only and may change or be varied from time to time.

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This policy supersedes all previous policies, circulars and procedures connected with compulsory redundancy within the Public Service.​

This policy forms part of the code of practice for performance and accountability. This code will be reviewed at the start of each term of States Employment Board, or earlier where relevant legislation or regulations change.

Compulsory redundancy policy

Policy ​purpose

The purpose of this policy is to provide clear information and guidance on the Government of Jersey’s approach to compulsory redundancy.​

Compulsory redundancy is always a last resort. Other actions such as redeployment opportunities will always be considered first where practicable.

Policy scope

This policy applies to all Jersey public servants on permanent contracts of employment with more than 2 years’ continuous service.

In the case of redundancy, unless otherwise agreed by the Chief People Officer, a break of more than one week will constitute a break in continuous service, unless the break was between 2 fixed-term contracts.

This policy also applies to employees on fixed-term contracts with a minimum of 2 years’ continuous service.

Employees on zero-hours contracts with a minimum of 2 years’ continuous service will have statutory redundancy provisions applied as set out in Jersey employment law.

This policy does not apply to:

Performance and accountabilities

Read the performance and accountabilities toolkit​​.

The procedure

What is redundancy?

When an employee is made compulsorily redundant, the post they previously occupied no longer exists.

Redundancies may arise in the following circumstances: 

Changes involving transfer to another employer

Changes resulting in staff transferring to a different employer will be normally handled in line with the Government of Jersey’s guidance on the Transfer of Public Sector employees.

Formal notification and consultation

Formal notification and full consultation either on an individual or collective basis or both, must take place with the employees affected by redundancy and or their representative, at the earliest possible stage for a minimum of 30 days. This may be extended in exceptional circumstances. The formal notice period for redundancy is as stipulated in individual contracts of employment or statute.

As part of the formal consultation process, and in line with the organisational change policy, trade unions will be informed of any potential redundancies.

It is expected that Chief Officers, or their delegate, will establish a timetable for the redundancy process. In the event of restructuring, this should include arrangements and timescales for appointment to any new posts, including an outline of any recruitment process.

Chief Officers must inform their Ministers of any compulsory redundancies in their departments.​

Employees on leave

Employees whose role is at risk of redundancy and are currently absent from work, for example on sick leave, parental leave, career break, secondments or any other form of leave must be formally consulted with, notified, and kept appropriately informed of changes and vacancies.

Pregnancy and parental leave​

If an employee is pregnant or on parental leave, special consideration is necessary, as this is a protected characteristic for discrimination purposes, and redundancy should be avoided if possible.

Consultation with employees on parental leave must be completed, however, if they refuse, any consultation must be placed on hold until their period of parental leave has ceased.​

Approval for organisational change plans resulting in redundancy

The proposals for redundancy must be approved by the Chief Officer of the department concerned and the Chief People Officer, who is acting under the delegated authority of the States Employment Board.

In all instances the following should be included as part of the approval submission:

Selecting for redundancy

There are two methods used to select for redundancy. The first involves selection criteria and the second is through a competitive recruitment process. The second process would normally be used in cases of major organisational or departmental restructuring.​

Selection criteria

If this method is used, the criteria used for selection will be evidence-based and applied objectively.​

Examples of such criteria are as follows:​

Attendance record

Must be accurate and not include absences relating to disability, pregnancy or parental leave.

Disciplinary record

This should capture any live disciplinary warnings and include any indefinite safeguarding warnings.

Knowledge, skills, and experience

Existing knowledge, skills and experience.

Standard of work or performance

Performance reviews.

Employees will not be selected for redundancy for any of the following reasons:

Redundancy payments

All employees on a permanent contract with a length of service that meets statutory requirements, will be entitled to the Government of Jersey’s redundancy terms applicable at the date of redundancy.

For redundancy payment purposes an employee’s length of service must be continuous. In cases of broken service, only the last period of service up to the date of redundancy will be considered. In the case of redundancy, unless otherwise agreed by the Chief People Officer, a break of more than one week will constitute a break in continuous service unless the break was between two fixed term contracts.

A redundancy payment for any permanent employee must be calculated in line with the Government of Jersey’s redundancy rates applicable at the date of redundancy. Where the Government of Jersey’s calculation and the statutory calculation provide for different figures, the higher figure applies.​

If the statutory entitlement to a redundancy payment exceeds the Government of Jersey’s calculation, then the statutory entitlement will be met. For example, an individual may receive a payment under this policy or their statutory entitlement, but not both.​

Redundancy and fixed term contract holders​

Employees on fixed term contracts with a minimum of 2 years’ continuous service will be paid statutory redundancy pay if their fixed term contract expires or ends prior to the planned contract end date.

There is no requirement for the employer to give notice to an employee when a fixed term contract is ending as notice has already been provided through the end date of the contract.

Redeployment support

Find more information in the redeployment policy​​.

Redundancy payment

Redundancy payments will be calculated on substantive contractual pay and contractual allowances only. “Acting up” allowances and other non-pensionable or non-contractual supplement and allowances will not be included when calculating redundancy payments.

The redundancy payment is based on your continuous length of service. For compulsory redundancy, you will receive 3 weeks’ pay for each full year of continuous service. This is capped at a maximum of 12 months' salary, the equivalent of 52.18 weeks. A cap is also applied where your annual salary exceeds civil service grade 15 increment 4 or equivalent.

Examples are provided below and note for the purpose of these, the 2023 pay scale rates have been used:​

Example 1

An employee has worked for the Jersey Public Service for 40 full years and are a civil service grade 10 increment 4.

As this amount exceeds 12 months’ salary, the redundancy amount is capped at 12 months’ pay, which is £60,931.11​.

Example 2

An employee has worked for the Jersey Public Service for 15 full years and are above a civil servant grade 15, increment 4 on an annual salary of £120,000.​

The maximum amount the employee can receive is the annual salary at Civil Service 15 increment 4, which is capped at 12 months’ pay.

Employees can access the compulsory redundancy calculator to work out their compulsory redundancy payment.

Assisting e​mployees affected by redundancy

Employees affected by redundancy will be supported through the redeployment policy and scheme.

Pensions​

Subject to the rules of the relevant pension scheme, if your employment is terminated by reason of redundancy you may choose to surrender some or all your resultant lump sum to purchase additional pensionable service. Contact pept@gov.je​ for more information.

Re-employment following redundancy​

Re-employment guidelines are available on MyStates (internal website) for more information.​

Confirmation of redundancy and pay in lieu of notice (PILON)​

If an employee is being made redundant, they will receive the following information in writing:

Notice period will be determined based on an employee’s individual contract of employment or statute if more beneficial. Employees may request to leave prior to completing their notice period and any requests will be given full consideration subject to operational requirements. Consideration will also be given to pay in lieu of notice in certain circumstances.

Appeal against redundancy decision 

If employees think the reason for redundancy is unfair or the process was not followed correctly, they should write to the Chief People Officer within People Services. This should be done within 10 working days of the date that they were served notice of redundancy, setting out the grounds of their appeal.

An employee should set out the reasons they are appealing against the redundancy. These may include:

• they were unfairly selected​
  
• the employer did not follow a fair redundancy process
  

The appeal will be considered by an appeal panel made up of:

Within 1 week of receipt of the appeal, the employee will be informed in writing of the membership of the appeal panel and the date on which the appeal will be heard. The panel will review the grounds for appeal and any associated paperwork and will decide based on the evidence provided in the papers.

The appeal panel will write to the employee to confirm the outcome, including whether they accept or reject the appeal. The Panel’s decision is final and there is no further right of appeal.​

Matters related to unfair treatment or which involves a protected characteristic, should be raised through the dignity and respect at work or resolving grievances policies.

Right to be represented or accompanied, including companion support

By law, any employee can bring one person to a formal meeting; this can be a trade union representative or a workplace colleague. In addition, employees who require reasonable adjustments may also be entitled to companion support.​

Right to be accompanied​

Support and wellbeing

Your wellbeing is our priority, everyone should feel safe and supported in the workplace. Sources of wellbeing support and guidance can be found for public servants on MyStates.​

Employees will be supported throughout the redundancy process by both their line manager and People Services and will be provided with details of additional support offered by the Wellbeing team.

Confidentiality​

​We all have a right to confidentiality throughout this procedure. Read our confidentiality toolkit for more guidance.

Confidentiality

Glos​sary

See our glossary of terms for definitions or explanations.​

People po​licies glossary​​