F–E.9.11
(L3482/DGW/BMW)
SWANSEA UNIVERSITY
Personnel Department
Redundancy Payments Procedure
Introduction
The Council of the University of Wales Swansea at its meeting on 6 December 1999 agreed to discontinue the use of Waiver Clauses with effect from 1 January 2000. Redundancy payments must now be made to all staff dismissed because of redundancy, whose fixed term contracts terminate from 1 January 2002 and who have been continuously employed for at least two years.
Redundancy pay will be calculated in accordance with the Employment Rights Act 1996. The following procedures will apply and are designed to dovetail with the Code of Practice for Consultation Regarding the Expiry of Fixed Term Contracts (K1319), attached.
Procedure
1. Three months before the expiry of the fixed term contract, a letter will be sent to the employee in accordance with the Procedure for the expiry of fixed term contracts initiating the consultation process.
2. One month before the expiry date of the fixed term contract, a letter is sent to the employee terminating the employment with effect from the date of the contract. This letter will enclose a paragraph stating:
(a) whether a redundancy payment will be made;
(b) if a redundancy payment is to be made, that it will be paid with the final payments made to the employee;
(c) that the employee will receive a statement of redundancy payment with the final payslip and P45;
3. At the same time as the termination letter is sent to the employee, an electronic form will be completed by the Personnel Officer issuing the letter to be sent to the Finance Department.
4. The form will give the following information:
Date of continuous service and termination date;
Number of completed years service;
Age of the employee;
The calculation date for payment – (This will be the expiry date of the fixed term contract).
5. On receipt of the form, the Finance Department will calculate the redundancy payment due based on a formula calculated in accordance with the Employment Rights Act 1996 on:
(i) the age of the employee at the calculation date;
(ii) the number of weeks payment based on the completed years of continuous service;
(iii) the calculation of a week’s pay at the calculation date.
6. The redundancy payment will be made with the final salary payment through the payroll.
7. The Finance Department will provide the statement of redundancy pay (a printout of the form), which will be sent to the employee with the P45 and final payment.
8. In some cases, the appointment may be renewed after the termination letter has been sent. In this case, a reappointment letter will be sent continuing the employee’s service.
9. In certain cases the appointment may be renewed when it is already too late to stop the redundancy payment being made. In this case, the employee will be required to repay the redundancy payment by deduction from salary in subsequent months. This will require the authority of the employee. The termination and reappointment letter will contain a deduction from wages clause. The employee will be required to sign and return a copy of the reappointment letter to permit the deduction. In this case, if the
letter is not signed and returned then the employee will not be deemed to have accepted the appointment and salary will be withheld.
10. Redundancy payment for appointments terminating on or before 1 August 2002, will be charged to a central fund. Redundancies after 1 August 2002 will be charged to Departments. Heads of Departments will be notified of this. A statement to this effect will also be included in the letter sent to Heads of Departments reminding them of the upcoming expiry of fixed term contracts.