Policy and Procedure Document
Document Name:
Voluntary Severance Scheme
Ref & version no.:
VSJD Final
Status:
Agreed
Equality Impact
Assessment:
Desk top completed-stakeholder meeting took place 19/01/2011.
Approved by:
Executive Director of Human Resources
Effective from:
9th July 2010
Date for review:
Open ended. The application of the Voluntary Scheme/Compulsory
Redundancy approach (and payments) will be confirmed as part of
the collective consultation process and communication of Section
188 information.
Author:
HR Division
Owner:
HR Division
Document control:
All printed versions of this document are classified as uncontrolled.
A controlled version of this document is available from Human
Resources or in the ‘HR Documents’ section of the Staff Channel.
Questions on this policy should be initially directed to HR Reception
on 0161 2952121 or HR Advice@salford.ac.uk
Version History
Version number:
Date:
Nature of Change (reasons/comments)
1
16/09/2010
Introduction of new calculation factors @ x1 of
statutory factors excluding statutory earnings
cap. This scheme/policy is an essential element
of a suite of policies covering organization
restructure which includes Avoidance of
Redundancy/Redundancy Policy and
Procedure, Restructuring Principles Policy and
Procedure, and Redeployment Principles Policy
and Procedure
2
09/12/2010
Factor increased to x 1.25
3
Final 26/01/2011
Factor increased to x 1.5
4
Final 01/03/2011
Full policy wording
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Author: John Doran
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5
Final 1.1
Scope & purpose:
Legislative changes and discussions with trade
unions - update 18/07/13

This scheme replaces the discretionary scheme which was
introduced in August 2007 and which was withdrawn on 9th
July 2010.

Applications for voluntary severance will be sought by the
University in named areas of the University from time to
time. The circumstances giving rise to expressions of
interest in taking voluntary severance shall normally be
when the University requires job losses to be effected in a
particular area to address a budgetary deficit and/or
undertake an element of restructuring which may include
deletion of individual roles. When such a situation arises,
the University shall notify employees employed in that area
that applications for voluntary severance will be considered.
In these circumstances it will not be permissible for any
pressure to be placed on any individual to apply for
voluntary severance - an application is a matter of
employee choice.

Voluntary severance will normally be offered where the
University needs to lose jobs in a specific area. The
University is committed to avoiding compulsory
redundancies wherever possible and this scheme is one of
the means by which this can be achieved ( further
information is provided within the Avoidance of
Redundancy/Redundancy Policy and Procedure)
Start point:
The University invites applications for voluntary severance and
employee volunteers for voluntary severance
End point:
Application for voluntary severance is rejected or, if accepted,
employee leaves employment on voluntary severance terms. There
will be no right of appeal against a decision at any stage of the
process.
Compliance:
Equal Pay requirements
Who this applies to:
This scheme applies to all University employees with more than 2
years continuous service with the University. This scheme does not
apply to those who are not employed by the University, for example,
agency employees or contractors.
Users:

The Managers of affected employees will be responsible for
implementing the scheme in a fair, consistent, and cost
effective manner

All employees whose application for voluntary severance has
been accepted.

Employees are encouraged to seek the advice of their trade
union representative on any relevant matters relating to the
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Author: John Doran
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operation of this scheme

Trade Unions have agreed the policy and procedure and will
be available to offer advice and support to members as the
policy and procedure affects them.

Human Resources Division will be responsible for ensuring
compliance with this scheme and procedure and providing
guidance and direction
1. Detail of Scheme
1.1 Scheme Payments
The statutory redundancy scheme is calculated by multiplying a number of weeks’
pay, which is determined by age bands, by employment service within these age
bands and a weeks’ pay is capped at £475. The payments offered by the University
under this scheme represent lump sum payments to the value of the statutory number
of week’s pay, for each age band, which have been enhanced by a factor of x 1.5. In
addition, a weeks’ pay is not capped at the statutory level and is based on the
employee’s actual basic weekly pay. This provides the following benefits:
For each year of continuous service with the University of Salford (or in the case of
ex-UCS and ex Northern College of Nursing and Midwifery employees reckonable
continuous service), the following benefits will accrue:



Service under the age of 22 - ¾ of a weeks’ basic pay
Service over the age of 22 but below 41 - 1½ weeks’ basic pay
Service over the age of 41 - 2¼ weeks’ basic pay
A maximum of 20 years service is reckonable under the scheme providing for a maximum of
45 weeks pay for any employee with 20 years reckonable service over the age of 41.
1.2
Other Payment Conditions
1.2.1
The voluntary severance payment will incorporate the employee’s statutory
redundancy entitlement and, strictly in accordance with HMR&C rules
applicable at the time, will not be taxable up to a maximum payment of
£30,000. Employees will generally be required to work their notice period.
1.2.2
In the case of employees with a combination of full and part time reckonable
service, and part time employees who have worked different fractions of full
time employment at different times, the calculation of their basic salary to be
used in determining the appropriate voluntary severance payment is as
follows:

1.3
The average proportion of full time employment worked over the
length of service should be calculated. This average proportion of
final full time basic salary point for the employee should then be
used as the basis for calculating the voluntary severance payment
Release Of Pension Benefits
Subject to the appropriate pension scheme rules applicable at the time of voluntary
severance, pension benefits may be released without any actuarial reduction. For
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Author: John Doran
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further information and clarification refer to the HR intranet site or contact the
Pensions Adviser.
1.4
Application Of Scheme
1.4.1
The scheme will apply in circumstances where the employee’s leaving date
(by reason of voluntary severance) is on or after 9th July 2010. The only
exceptions to this will be in respect of a small number of cases where the
University has accepted, or already committed to, applications based on the
previous scheme
1.4.2
The scheme will not apply where an employee has opted to be served
formal notice of compulsory redundancy in which case statutory payments
will be applicable. - refer to Avoidance of Redundancy/Redundancy Policy
and Procedure (section 2.6) and Restructuring Policy and Procedure
(section 2.12). In addition, the scheme will not apply to employees who have
indicated that they are leaving the University or where the University has
indicated that the employee is leaving the University for any reason.
1.4.3
The Voluntary Severance Scheme, and its application, is entirely at the
discretion of the University and employees have no contractual right to
voluntary severance. Trade Unions will be consulted in the event that the
University decides to amend, withdraw, or terminate the scheme or any
elements of it.
2. Detail of Procedure
2.1. Acceptance Of Applications Under The Scheme
2.1.1 Acceptance of applications for Voluntary Severance under this scheme will be
determined solely by the University
2.1.2 In reaching its decision, the University will take account of:
a) Its commitment to mitigate compulsory redundancy
b) Its need to retain key skills, competencies, experience, and capability
c) The payroll cost savings that can be achieved by releasing an employee on
voluntary severance terms including consideration of the full cost of voluntary
severance against the future payroll costs of the applicant.
2.1.3 The University will require an employee to sign a Compromise Agreement as
a condition of the University accepting his/her application for Voluntary
Severance
2.2
Provision Of Estimates Of Individual Benefits
2.2.1
Where an employee responds to a notification from the University that
applications for voluntary severance will be welcomed from the area of the
University where the employee works, an estimate of individual voluntary
severance payments will be provided by the HR Division
2.2.2
Requests for individual estimates of pension benefits will be provided by the
Pensions Adviser
2.2.3
There will be no detriment to employees requesting details of estimated
voluntary severance benefits as voluntary severance is an essential element
of trying to avoid compulsory redundancy. Such requests will be kept strictly
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Author: John Doran
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confidential and no intent to leave the University on voluntary severance
terms will be assumed until an employee formally completes and submits a
formal application for consideration.
3. Links to Related Documentation or Other Policies
4.1. Related Policies

Avoidance of Redundancy/Redundancy Policy and Procedure

Restructuring Principles Policy and Procedure
Owner: HR Division
Author: John Doran
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