Opinion: Legal

Legal: How to manage restructuring, redundancies and industrial action

With more budget cuts on the horizon, here are some answers to the questions leaders ask us most about their predictable consequences

With more budget cuts on the horizon, here are some answers to the questions leaders ask us most about their predictable consequences

22 May 2025, 10:21

With reports suggesting a 1.2-per cent gap between government funding and recommended pay rises, another round of ‘efficiencies’ (budget cuts) could be on the way. This means leaders may be forced to consider how best to manage restructuring, redundancies and industrial action.

Here, we answer some of the key questions school leaders ask us regularly.

Industrial action

Many schools may anticipate a repeat of the 2022/23 national strikes and localised industrial action last year.

During local disputes where schools have some influence, leaders should engage directly with unions to understand their concerns around pay and conditions.

Collective bargaining plays a vital role. School leaders should check whether they have a Trade Union Recognition Agreement (TURA) in place, which outlines how they’ll work with unions. Most schools will have a Joint Negotiating Committee (JNC) or Joint Consultative Committee (JCC) for negotiating terms and conditions.

If negotiations stall, the Advisory, Conciliation and Arbitration Service (ACAS) can help to find resolutions.

Meanwhile, a robust communications strategy that explains the school’s position directly to staff can be remarkably effective. It ensures staff receive a balanced overall picture of the issues in dispute, and our experience with clients shows that it can significantly reduce staff participation in strike action.

Closures

Contingency planning is mandated by the Department for Education. Headteachers are expected to take reasonable steps to keep their school open for as many children as possible. If staffing levels would compromise safeguarding or safety requirements, closing the school may be necessary.

Schools are within their rights to ask staff whether they intend to strike, though they can’t pressure them not to participate. Leaders must communicate expectations clearly for strike days, including that non-attendance will be treated as participation in the strike action unless staff have reported their absence for a different reason in accordance with their policies.

Crucially, parents and stakeholders need adequate notice of arrangements to make alternative childcare plans.

Unions must notify schools seven days before balloting members and 14 days before industrial action commences, providing valuable planning time. Using these notification periods effectively can help mitigate disruption.

Restructuring

Restructuring doesn’t necessarily indicate financial failure. While many schools consider restructuring in response to deficit concerns, it can also be a forward-thinking approach to achieve financial sustainability or improve student outcomes. A clear rationale should be attached to any restructuring plan.

We recommend employers start by creating organisational charts that map both current and proposed staffing structures to identify which roles are retained, job-matched or no longer needed.

Job-matching often entails comparing present and proposed job descriptions to determine the degree of overlap or change. Any substantial change is likely to result in the previous role being at risk of redundancy where it is displaced from the structure.

Redundancies

Where school leaders identify the potential need to make redundancies, one mechanism worth considering is voluntary redundancy, which gives staff a degree of control over their future.

Support staff aged over 55 in the Local Government Pension Scheme (LGPS) may be eligible to receive their pension if made redundant, which can result in pension strain costs. However, leaders must be mindful of potential discrimination claims if voluntary redundancy applications are handled incorrectly.

Whether voluntary or otherwise, consultation with affected staff and trade unions is not just good practice; it’s a legal requirement.

For collective redundancies (20 or more within a 90-day period), there are additional statutory obligations regarding consultation timelines. Schools should follow a fair and robust selection process. For those selected for redundancy, schools have a duty to seek suitable alternative employment before termination.

Redundancy packages should be calculated according to statutory requirements as a minimum, though some schools may offer enhanced terms where budgets permit. Staff with at least two years’ continuous service are entitled to a redundancy payment, with the amount depending on age, length of service and weekly pay.

Discussions about restructuring and redundancies may seem pessimistic, but proactive planning is preferable to reactive crisis management. School leaders who assess their options early and develop clear strategies will be better positioned to navigate these challenges while minimising their impact on provision.

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