Redundancy
When an employee is facing redundancy, the manager will request an estimate of any applicable redundancy payment.
Members of the Local Government Pension Scheme (LGPS) will also get an estimate of the accrued pension benefits. They must be aged 55 or over at the proposed date of redundancy.
A redundancy payment may be due when a temporary or fixed-term contract ends, and we do not offer the employee a contract renewal.
This is a dismissal, however, the entitlement to a redundancy payment depends on whether:
- the employee has completed two years' service (if not, there is no entitlement)
- the reason for the decision not to offer renewal of the contract is redundancy
If a fixed-term contract is to end early, entitlement to a redundancy payment will apply. It will also apply where an employee has transferred from a permanent to a temporary or fixed-term contract.
We must offer a suitable vacancy, where one exists, to an employee at risk of redundancy:
- from the point an employee has informed us they are pregnant (using the Mat B1 form)
- whilst on adoption leave
- whilst on shared parental leave
This protection applies until 18 months after the birth or placement of the child for employees returning from maternity, adoption, or shared parental leave.
Employees will not usually need to compete for such a role. We may hold a meeting to decide whether their skills and experience match the essential requirements of the job.
If they match the essential criteria, we will offer the employee the role without a competitive interview. This is regardless of the number of colleagues in the ring-fence for that role.
For the right to the offer of an available vacancy, an employee must comply with provisions to notify their line manager of their intention to return.
The only exception to this right without a competitive recruitment process is when more than one employee is at risk of redundancy whilst on maternity, adoption or shared parental leave. In that case, some form of a competitive application process may be necessary.
Enhancements
Interest in efficiency – we do not normally exercise discretion to award payments under these criteria. Only accrued pension benefits will be released for those meeting minimum pensionable age criteria.
In exceptional circumstances, a business case may be submitted for consideration by the director of resources. The business case must demonstrate savings and benefits to the council.
Redundancy
An enhanced payment of up to 66 weeks is payable for both LGPS members and non-scheme members.
Under the discretionary elements of the LGPS, we have the option to grant additional pension in redundancy or interest of efficiency situations. We do not usually exercise this option, but we will consider it in exceptional circumstances.
View our enhanced redundancy payments.
Voluntary early retirement
Under the LGPS, the earliest age for retirement is 55. There are mechanisms within the scheme that define any applied reductions to drawn benefits before the normal pension age.
Pre-funding
In most cases of redundancy and interests of efficiency, there is a requirement for directorates to pre-fund the pension scheme for the cost of the early release of benefits. The pensions section will provide these costs.