HR Policy and GuidanceCareer Break Scheme
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HR Policy and GuidanceRedundancy
Quick GlanceWho does this policy apply to?
What can be done to avoid redundancy?
In what circumstances could I be made redundant?
Can I be made redundant whilst I am on maternity/additional paternity or adoption leave?
Will there be consultation about proposed redundancies?
Do I qualify for redundancy pay?
What redundancy pay will I receive?
Will I be entitled to any pension benefits? What notice will I receive?
Do I have a right of appeal?
Can I volunteer for redundancy?
Will I have the opportunity to be redeployed?
Do I get time off for job hunting?
Will I be paid for the time off job hunting?
What happens if I get another job outside of the council before my notice period ends?
What happens if I want to leave before the end of my notice period?
What support does the council provide for redundant employees?
When could I expect to receive my redundancy payment?
Do I have to pay tax on my redundancy payment?
Who does this policy apply to? / It applies to the following employees:- grades A – L (Green Book)
- grades SMG, PMG, director and group director (JNC Chief Officers)
- craft workers (Red Book)
- youth & community (Pink Book)*
- soulbury (Blue Book)*
- unattached teachers (Burgundy Book)**
- Gloucestershire Fire & Rescue Service (Grey Book)
- Gloucestershire Fire & Rescue Service (Gold Book)
- teachers (Burgundy Book)
- teachers in residential schools/establishments (Orange Book)
**The national conditions of service (Burgundy Book) are not prescriptive on this point,whichshould therefore be determined locally. In such cases it is the established practice of the council to mirror the relevant Green Book policy. However, application of this policy is also subject to the provisions of the Teachers (Compensation for Redundancy and Premature Retirement) Regulations 1997, which restrict the amount of a redundancy payment that can be made in certain circumstances where the employee is also eligible for release of pension benefits under the Teachers’ Pension Scheme.
Appendix oneto this policy provides additional information specifically for unattached teachers.
What can be done to avoid redundancy? / Your manager should consider the feasibility of using some or all of the following:
- Freeze external recruitment to job roles affected.
- Review recruitment to ensure that where possible internal appointments are made and vacancies created for redundant employees.
- End any voluntary overtime in areas where this could provide employment opportunities for redundant employees.
- Review the use of consultancy, contracting and agency services and consider whether this could create opportunities for redundant employees.
- Approach other public authorities to ask if they have any opportunities for our redundant employees.
- Consider whether it is possible to retrain employees to work in another part of the service/directorate or council.
- Retain employees for short periods when managers know a substantive post will shortly be available.
- Offer voluntary early retirement/redundancy in appropriate cases, subject to employer consent and a business case.
In what circumstances could I be made redundant? / The law states that redundancy occurs when adismissal is wholly or mainly because of one of the following:
- Theemployer has stopped, or intends to stop, carrying on thebusiness within which you are employed.
- The employer’s requirement for employees to carry out work of a particular kind has stopped or reduced (or is expected to).
- The business or kind of work for which you are employed is no longer to be undertaken in the place where you are employed, or the employer’s requirements for employees at the place where you are employed has reduced (or is expected to).
Non-renewal of a fixed term contract may also be a redundancy dismissal. For more information you should go to the Fixed Term Contract policy or contact HR.
Can I be made redundant if I am on maternity leave/additional paternity or adoption leave? / Yes. Your post may disappear due to redundancy whilst you are on maternity/additional paternity or adoption leave or you may be selected for redundancy whilst you are on maternity/additional paternity or adoption leave in the same way as other employees. In either case you will be offered an alternative job if a suitable vacancy is available.Will there be consultation about proposed redundancies? / Yes. The council will always consult with recognised trade unions.
Do I qualify for redundancy pay? / Only if you have two or more years continuous service.
What redundancy pay will I receive? / Your redundancy pay is calculated by your age, actual weekly pay and *length of service and is detailed in the Employment Relations Act 1996 (ERA).
The council provides a more generous payment than the statutory requirement as we multiply the number of weeks by 2.0.These payments (including the enhancements @ 2.0) can be found in the redundancy ready-reckoner by clicking here.
The current multiplier of 2.0 will reduce from 2 to 1.75 with effect from 1st April 2012.
The appropriate rate will apply dependent upon your termination date. A ready-reckoner for the reduced rate can be found here.
These compensation arrangements are discretionary and may be varied or withdrawn unilaterally by the council.
Non-renewal of a fixed-term contract may also be a redundancy dismissal. In certain circumstances the calculation of the redundancy payment may differ from the above. For more information regarding the payment that may be due you should go to the Fixed Term Contract Policy or contact HR.
*Length of service is calculated using the total of all your continuous service with local authorities and other organisations that are specified on a national document called the Modification Order. This can be accessed by registering on the Local Government Employer’s website HRif you are unsure.Will I be entitled to pension benefits? / To qualify for early release of your pension you must:
- be a member of the Local Government Pension Scheme (LGPS)
- have more than three months pensionable membership
- be 55 or over
What notice will I receive? / Three months.
Do I have a right of appeal? / Yes. Should you be made redundant, you will receive confirmation in writing and full details of your right of appeal will be included.
Can I volunteer for redundancy? / Only in those situations where you may be invited to express an interest in redundancy. However, there is no guarantee that an expression of interest will be agreed. Agreement to voluntary redundancy is entirely at the discretion of council.
Will I have the opportunity to be redeployed? / Yes, if you are compulsorily dismissed as redundant because the council has an obligation to try to offer any suitable alternative employment that may be available.The council has a long-established redeployment register that is used to match redundant employees with suitable vacancies. For more details please go to the Your Next Step Policy.
Do I get time off for job hunting? / If you have been continuously employed for two years by the date on which your notice ends, you are allowed a reasonable amount of time off during your notice period to:
- look for another job
- arrange training to help you find another job
Will I be paid for the time-off for job hunting? / There is a legal entitlement to receive up to a maximum of two days pay for any time-off taken during the notice period for looking for another job or arranging training. If more than two days is taken the additional amount of time will be unpaid.
What happens if I get another job outside of the
council before my notice period ends? / If you are under notice of dismissal for redundancy and before the end of your notice period you are offered a job from another organisation on the Modification Order, you must have a break of at least four weeks (including five Sundays) before starting the new job, in order to keep your redundancy pay. For details of the modification order go to
However, if after the end of your notice period, you are offered another job (by any organisation) you will not lose your rights to the redundancy payment.
Talk to HR if you are unsure of your position regarding a job offer.
What happens if I want to leave before the end of my notice period? / If you simply resign during your notice period then you are not treated as “dismissed” as redundant. This means that you are not entitled to a redundancy payment.
However it may be possible for you to leave early,and receive a recalculated redundancy payment (and pension if appropriate), if your manager agrees to shorten your notice period.
If you wish to shorten your notice period then you should write to your manager stating the reasons why you wish to do so. Your manager willdecide whether it is reasonable in the circumstances for the council to agree to your request and can authorise your receipt of a recalculated redundancy payment (and pension if appropriate).
What support does the council provide for redundant employees? / The council provides a range of support. For details please see the Transitional Support page.
When could I expect to receive my redundancy payment? / Your redundancy payment will be processed through the next available payroll run (end of the calendar month) following receipt by the Business Service Centre (BSC) of the relevant authorisation from your manager.
Do I have to pay tax on my redundancy payment? / Under the HMRC rules redundancy payments of up to £30,000 are free of tax. Any amount above £30,000 is taxable. For example, if a redundancy payment was £40,000 the first £30,000 would be free of tax but the additional £10,000 would be taxed at the appropriate rate.
Further information about the taxation of redundancy payments is available on the HMRC web-site at:
Information about claiming a tax refund after employment has ended is available on the HMRC web-site at
Ready Reckoner
Redundancy payments are made to employees who have a minimum of two years’ continuous local government service. This ready reckoner should be used for all employees, irrespective of membership in the LGPS.Please note the figures in this table include both the statutory redundancy payment and the council’s 2.0 multiplier (i.e. there is no further enhancement to the figures shown in the table).
A ready reckoner for the reduction in the multiplier can be found here.
AGE / SERVICE (COMPLETED YEARS)2 / 3 / 4 / 5 / 6 / 7 / 8 / 9 / 10 / 11 / 12 / 13 / 14 / 15 / 16 / 17 / 18 / 19 / 20*[3]
18* [1] / 2
19 / 2 / 3
20 / 2 / 3 / 4
21 / 2 / 3 / 4 / 5
22 / 2 / 3 / 4 / 5 / 6
23 / 3 / 4 / 5 / 6 / 7 / 8
24 / 4 / 5 / 6 / 7 / 8 / 9 / 10
25 / 4 / 6 / 7 / 8 / 9 / 10 / 11 / 12
26 / 4 / 6 / 8 / 9 / 10 / 11 / 12 / 13 / 14
27 / 4 / 6 / 8 / 10 / 11 / 12 / 13 / 14 / 15 / 16
28 / 4 / 6 / 8 / 10 / 12 / 13 / 14 / 15 / 16 / 17 / 18
29 / 4 / 6 / 8 / 10 / 12 / 14 / 15 / 16 / 17 / 18 / 19 / 20
30 / 4 / 6 / 8 / 10 / 12 / 14 / 16 / 17 / 18 / 19 / 20 / 21 / 22
31 / 4 / 6 / 8 / 10 / 12 / 14 / 16 / 18 / 19 / 20 / 21 / 22 / 23 / 24
32 / 4 / 6 / 8 / 10 / 12 / 14 / 16 / 18 / 20 / 21 / 22 / 23 / 24 / 25 / 26
33 / 4 / 6 / 8 / 10 / 12 / 14 / 16 / 18 / 20 / 22 / 23 / 24 / 25 / 26 / 27 / 28
34 / 4 / 6 / 8 / 10 / 12 / 14 / 16 / 18 / 20 / 22 / 24 / 25 / 26 / 27 / 28 / 29 / 30
35 / 4 / 6 / 8 / 10 / 12 / 14 / 16 / 18 / 20 / 22 / 24 / 26 / 27 / 28 / 29 / 30 / 31 / 32
36 / 4 / 6 / 8 / 10 / 12 / 14 / 16 / 18 / 20 / 22 / 24 / 26 / 28 / 29 / 30 / 31 / 32 / 33 / 34
37 / 4 / 6 / 8 / 10 / 12 / 14 / 16 / 18 / 20 / 22 / 24 / 26 / 28 / 30 / 31 / 32 / 33 / 34 / 35
38 / 4 / 6 / 8 / 10 / 12 / 14 / 16 / 18 / 20 / 22 / 24 / 26 / 28 / 30 / 32 / 33 / 34 / 35 / 36
39 / 4 / 6 / 8 / 10 / 12 / 14 / 16 / 18 / 20 / 22 / 24 / 26 / 28 / 30 / 32 / 34 / 35 / 36 / 37
40 / 4 / 6 / 8 / 10 / 12 / 14 / 16 / 18 / 20 / 22 / 24 / 26 / 28 / 30 / 32 / 34 / 36 / 37 / 38
41 / 4 / 6 / 8 / 10 / 12 / 14 / 16 / 18 / 20 / 22 / 24 / 26 / 28 / 30 / 32 / 34 / 36 / 38 / 39
42 / 5 / 7 / 9 / 11 / 13 / 15 / 17 / 19 / 21 / 23 / 25 / 27 / 29 / 31 / 33 / 35 / 37 / 39 / 41
43 / 6 / 8 / 10 / 12 / 14 / 16 / 18 / 20 / 22 / 24 / 26 / 28 / 30 / 32 / 34 / 36 / 38 / 40 / 42
44 / 6 / 9 / 11 / 13 / 15 / 17 / 19 / 21 / 23 / 25 / 27 / 29 / 31 / 33 / 35 / 37 / 39 / 41 / 43
45 / 6 / 9 / 12 / 14 / 16 / 18 / 20 / 22 / 24 / 26 / 28 / 30 / 32 / 34 / 36 / 38 / 40 / 42 / 44
46 / 6 / 9 / 12 / 15 / 17 / 19 / 21 / 23 / 25 / 27 / 29 / 31 / 33 / 35 / 37 / 39 / 41 / 43 / 45
47 / 6 / 9 / 12 / 15 / 18 / 20 / 22 / 24 / 26 / 28 / 30 / 32 / 34 / 36 / 38 / 40 / 42 / 44 / 46
48 / 6 / 9 / 12 / 15 / 18 / 21 / 23 / 25 / 27 / 29 / 31 / 33 / 35 / 37 / 39 / 41 / 43 / 45 / 47
49 / 6 / 9 / 12 / 15 / 18 / 21 / 24 / 26 / 28 / 30 / 32 / 34 / 36 / 38 / 40 / 42 / 44 / 46 / 48
50 / 6 / 9 / 12 / 15 / 18 / 21 / 24 / 27 / 29. / 31 / 33 / 35 / 37 / 39 / 41 / 43 / 45 / 47 / 49
51 / 6 / 9 / 12 / 15 / 18 / 21 / 24 / 27 / 30 / 32 / 34 / 36 / 38 / 40 / 42 / 44 / 46 / 48 / 50
52 / 6 / 9 / 12 / 15 / 18 / 21 / 24 / 27 / 30 / 33 / 35 / 37 / 39 / 41 / 43 / 45 / 47 / 49 / 51
53 / 6 / 9 / 12 / 15 / 18 / 21 / 24 / 27 / 30 / 33 / 36 / 38 / 40 / 42 / 44 / 46 / 48 / 50 / 52
54 / 6 / 9 / 12 / 15 / 18 / 21 / 24 / 27 / 30 / 33 / 36 / 39 / 41 / 43 / 45 / 47 / 49 / 51 / 53
55 / 6 / 9 / 12 / 15 / 18 / 21 / 24 / 27 / 30 / 33 / 36 / 39 / 42 / 44 / 46 / 48 / 50 / 52 / 54
56 / 6 / 9 / 12 / 15 / 18 / 21 / 24 / 27 / 30 / 33 / 36 / 39 / 42 / 45 / 47 / 49 / 51 / 53 / 55
57 / 6 / 9 / 12 / 15 / 18 / 21 / 24 / 27 / 30 / 33 / 36 / 39 / 42 / 45 / 48 / 50 / 52 / 54 / 56
58 / 6 / 9 / 12 / 15 / 18 / 21 / 24 / 27 / 30 / 33 / 36 / 39 / 42 / 45 / 48 / 51 / 53 / 55 / 57
59 / 6 / 9 / 12 / 15 / 18 / 21 / 24 / 27 / 30 / 33 / 36 / 39 / 42 / 45 / 48 / 51 / 54 / 56 / 58
60 / 6 / 9 / 12 / 15 / 18 / 21 / 24 / 27 / 30 / 33 / 36 / 39 / 42 / 45 / 48 / 51 / 54 / 57 / 59
61* [2] / 6 / 9 / 12 / 15 / 18 / 21 / 24 / 27 / 30 / 33 / 36 / 39 / 42 / 45 / 48 / 51 / 54 / 57 / 60
Expressed in Numbers of Weeks Pay
18*[1] - It is possible that an individual could start to build up continuous service before age 16, but this is likely to be rare, and therefore we have started Table 2 from age 18.
61*[2] – The same figures should be used when calculating the redundancy payment for a person aged 61 and above.
20 yrs service* [3] - The same figures should be used when calculating the redundancy payment for a person with more than 20 years service
Appendix 1 – Additional information for unattached teachers only
What notice will I receive? / Three months. This must end in line with an academic term as set out in the Burgundy Book national conditions of service.What redundancy pay will I receive? / The council currently provides a more generous payment than the statutory requirement as we multiply the number of weeks by 2.2 (unattached teachers currently remain on the previous multiplier) and do not apply the statutory ‘cap’ on the amount of a week’s pay.Please note the multiplier will reduce to 1.75 with effect from 1st April 2012.
However, if you are aged 55 or over, you can apply for early access to your pension (‘premature retirement’) butIf this is agreed, your redundancy payment can only be made in line with the statutory scheme in respect of the number of weeks’ pay due and subject to a maximum of £430 per week.
Will I be entitled to pension benefits? / To qualify for early release of your pension you must be:
- a member of the Teachers Pension Scheme with two or more years membership
- be aged 55 or over on the last date of employment
Can I claim enhanced redundancy pay and premature retirement at the same time? / No. As the council provides an enhanced redundancy payment, this would be an alternative to premature retirement because both benefits are at the council’s discretion (i.e. they are not statutory entitlements). If you choose an enhanced redundancy payment over premature retirement, the pension regulations require that you will have to wait until normal retirement age to draw your full pension.
How will I know how much I am likely to receive in respect of pension and/or redundancy entitlement? / You will be provided with provisional (estimated) details by the Business Service Centre (BSC).
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