Policy and Procedure Document

Document Name: Voluntary Severance Scheme Ref & version no.: VSJD Final Status: Agreed Equality Impact Desk top completed-stakeholder meeting took place 19/01/2011. Assessment: 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 [email protected]

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 5 Final 1.1 Legislative changes and discussions with trade unions - update 18/07/13

Owner: HR Division Page 1 of 5 Author: John Doran Document ref, VSJDV Final 01.03.2011 (update 22/05/2015) Scope & purpose:  This scheme replaces the discretionary scheme which was introduced in August 2007 and which was withdrawn on 9th July 2010.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 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

Owner: HR Division Page 2 of 5 Author: John Doran Document ref, VSJDV Final 01.03.2011 (update 22/05/2015) 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:  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 1.3 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 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

Owner: HR Division Page 3 of 5 Author: John Doran Document ref, VSJDV Final 01.03.2011 (update 22/05/2015) (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 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.

Owner: HR Division Page 4 of 5 Author: John Doran Document ref, VSJDV Final 01.03.2011 (update 22/05/2015) 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 Page 5 of 5 Author: John Doran Document ref, VSJDV Final 01.03.2011 (update 22/05/2015)