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Gradual reduction of Hours

Elizabeth Frank

| 0 Posts

9 Mar, 2020 15:46

Hi

Just need clarification that I am correct in the process I will be following:-

Bit of background (apologies if long).

We had an employee that put in a a flexible working request of their intention to reduce his hours over a period of time until they retire.  The full plan wasn't discussed but the first stages were that they were to reduce to a 4 day working week but no reduction in hours just longer working hours Monday to Thursday to cover their 37.5 with a plan to reduce to 3 days at some point up to their retirement  date. This was accepted and took effect Sept 19.

The employee has since mentioned in their appraisal that they plan to retire in July 2022 (1 year before they receive their state pension) and is already thinking of a plan of where their remaining responsibilities will fall and who to train etc..

Their manager (the CFO) has asked me to put together their options of reducing their hours as parts of their role have, over the past 2 years, naturally dropped off due to specialist hire's within the business (that the employee put forward so wont be a surprise to them) .  I am proposing the following (maybe earlier than what the employee had in mind I am unsure) as I feel we still need to keep the employee on board as they have been with the business 20+ years and that they have valuable knowledge of their remaining areas of responsibility within the business that do not fall within a specific department/business area.  We need to plan where this responsibility will sit within the business and a plan for them to impart their knowledge etc. regarding this area.  They are still a valuable resource to the business to keep part time at least.

The proposed plan:-

  • July 2020 – they could reduce to 3 days per week (22.5 hours per week) 
  • July 2021 – they could reduce to 2 days per week (15 hours per week) 
  • Retire July 2022 as they had originally planned.

I was going to suggest that the manager arrange a meeting with the employee and put forward the proposal and the reasons why and proposed dates and give them a chance to add anything to this (consultation). If the employee is ok with this, then we are ok to go ahead with the plans to reduce working hours. 

If they do not agree then what happens?  Do we force the change upon them (giving notice)? I don't really want to go down that route as they have put so much into the business and are a respected member of the business but I am unsure of what the option would be if they refused as I have never been in this situation before.  Would it be a redundancy situation? 

Also if the plan is accepted and down the line they decide to make the role redundant, would it be good practice to offer the difference in pay (from full time to part time as part of an ex-gratia payment if redundancy wasn't offered as an option at point of the proposed reduction in hours?

Hope I'm making sense, just got so many questions/options going through my head to make it the best outcome for the employee as he is a valued member of the organisation (and my line manager to add to the mix).

Many thanks for any advice/guidance.

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  • Keith

    | 0 Posts

    9 Mar, 2020 15:59

    Forcing the change will be unfair and potentially constructive dismissal - an ET is almost certain to find in their favor.

    I think you are starting in the wrong place - you are starting with a solution. You need to start with a conversation. What you are proposing is not consultation.

    A conversation might well lead to the same place but is likely to be fairer and more reasonable.

    There is no obligation to make up the redundancy pay and in the circumstances it would be a very expensive gesture. I am not sure why you would make some one redundant so close to retirement anyway. But you can of course pay what ever you want to the individual as long a sits over and above the statutory entitlement
  • Elizabeth Frank

    | 0 Posts

    9 Mar, 2020 16:09

    In reply to Keith:

    Thank you Keith, if the conversation doesn't lead to what the Exec Team have planned what would be the next course of action. Sorry I've not been involved in this situation and still learning in my standalone role (step up for me)
  • Keith

    | 0 Posts

    9 Mar, 2020 16:19

    In reply to Elizabeth Frank:

    You compromise and find the best agreement. Or you make their role redundant if the work has gone away

    Currently they are contracted to work 37.5 hours per week and you have to honor that or AGREE a change not impose it. The fact that they have indicated they might want to reduce hours in future gives an in to a discussion but no more than that. They dont even have any obligation to retire at the date they have suggested.

    So its all about having a discussion and trying to be open minded about solutions and not just getting with the FD wants

  • Ray

    | 0 Posts

    10 Mar, 2020 08:48

    Hi Elzabeth
    Sound advice from Keith. I would just add that you need to ensure that if these changes are agreed you need to be 100% certain that the person will go into retirement on XXXX date.If you simply reduce the hour progressively, it would be complicated if they indicated that they wanted to stay on. Try to wind everthing up into a single document where the person indicates that they will retire (unequivocably) on XX date, and that in the intervening period, ther hours will change from ZZ to YY and YY to XX on the specified dates.