Discretionary Voluntary Redundancy

If an application for voluntary redundancy is approved the Director of HR/OD on behalf of the Council may exercise discretionary powers and award redundancy pay based upon actual weeks’ wage, together with a compensation payment based on a multiplier of 1.5 applied on the statutory calculation. So for example, where the statutory scheme provides that an employee should receive 10 weeks’ wages, they will receive an additional 50%. This gives a total of 15 weeks (10 weeks redundancy pay and 5 weeks compensation).

Example: Redundancy pay 10 weeks’ pay

Compensation for 5 weeks’ pay.

Total Voluntary Redundancy Payment = 15 weeks’ pay.

No employee shall receive a total payment of less than £1,000, or pro rata if part-time. The compensation cannot be more than the equivalent of 104 weeks’ pay.

Example: Employee working 20 hours per week

Redundancy pay calculated on actual weekly wage equates to less than £1,000.

To pro rata the payment uses the formula:

£1,000 divided by standard working week – for example, 37 hours.

Multiply by number of contracted hours – for example, 20.

£1,000 ÷ 37 × 20 = £540 (pro rata redundancy payment):

• the VR payment excludes notice pay
• that notice will be worked, unless counter notice is provided

All of this information is set out in the formal VR Scheme Guidance, so colleagues have clear, transparent information before making any decisions.

When the scheme will open and close

The voluntary redundancy (VR) window will open on 21 April 2026 and close on 23 June 2026. Colleagues will then have 14 days to review, sign and return their application paperwork.

The final deadline for all completed VR applications to be received is midday on 23 June 2026.

We will make sure colleagues have clear reminders, supportive information, and opportunities to ask questions throughout this period, so everyone feels informed and supported.