March 2002

Don’t compromise on advice

If you ever face redundancy, or negotiate a severance package with your employer, the chances are you’ll be asked to sign a compromise agreement. If this happens it is vital you get advice from ACM.

A compromise agreement is a legally enforceable document that sets out the terms relating to your termination of employment. The aim is to ensure that once the agreement has been signed, neither you nor the college can make any further claims against one another (such as a claim for unfair dismissal).

For a compromise agreement to be valid, you must receive professional advice on what it means, and the adviser must also sign the agreement. Who you go to for such advice is therefore very important. Solicitors will provide this service, but the experience of callers to the ACM helpline suggests the advice given is not always the most appropriate. Fortunately, ACM has its own properly certified advisers who have a great deal of experience in this area.

ACM Employment Officer, David Green explains, “Our helpline staff and all our caseworkers are insured to give advice on compromise agreements. We will negotiate with the college to ensure the agreement is suitable, making sure it is fair to our member. We can also supply colleges with a model com-promise agreement, reducing their own solicitors costs.”

So the message is clear - don’t compromise on good advice. Call the ACM helpline (0116 285 4055) or where you have one, speak to your ACM caseworker.

Redundancy and Restructuring

Redundancy is a potentially fair reason for dismissal. However, for a redundancy to be lawful, the employer has to demonstrate a) the need to cut jobs; b) the place of work has moved; or c) the work has closed down completely.

If the employer has identified 20 or more potential redundancies, then a “section 188” has to be issued. This is a legal document which has to include the reasons for redundancy, the number and description of staff affected, the proposed method of selection for redundancy and the proposed method of calculating redundancy pay. An employee normally has to work for a continuous period of two years to qualify for a redundancy payment.

Once the section 188 has been issued, the employer is obliged to enter into a consultation period with the recognised unions and representatives (30 days if 20 or more staff are affected and 90 days if 100 or more.) Consultation which in this context means “with a view to reaching agreement” will obviously centre on ways to mitigate the effects of redundancy such as redeploy-ment, voluntary redundancy and increased redundancy payments and packages.

If, in the worst case, the employer goes ahead with compulsory redundancies, the selection procedure has to be objective, measurable and applied fairly. Any failure to do this may result in an unfair dismissal claim.

Even in the event that less than 20 posts are proposed for redundancy, the employer has a legal duty to consult with the relevant employees and ensure that selection criteria are fair and objective. In practice, most colleges now issue section 188 documents irrespective of the number of employees affected and have redundancy procedures that are modelled on the section 188 requirements.

If you are facing redundancy or restructuring, please get in contact with ACM.

More information can be found in our employment relations leaflet no 7 “Restructuring and Redundancy” available on the members’ page of the ACM website www.acm.uk.com

Caseworker Service

ACM’s caseworker service continues to provide first class support for members in need of workplace representation. Indeed, feedback from members indicates a 95% satisfaction rate among users.

If you have a problem, and might need casework support, contact the ACM helpline on 0116 285 4055 or by email at helpline@acm.uk.com. Most enquiries can be dealt with by our experienced advisers, but where appropriate, you will be passed to a caseworker.

The helpline is open from 10.00am until 4.00pm, with an answerphone service at all other times.