Southampton Metropolis Council is to scale back its price of redundancy pay to be able to enhance the affordability of restructuring.
The council had provided each voluntary and obligatory redundancy pay levels above the statutory minimal. It beforehand calculated voluntary redundancy funds at 1.25 the speed for obligatory redundancy, which was additionally above the statutory minimal.
Going ahead, employees will obtain statutory minimal fee ranges, no matter the kind of redundancy. These are based mostly on an worker’s age and size of service, to a most of 20 years. Statutory redundancy pay has a most threshold of £19, 290.
The council has calculated that, based mostly on common redundancy prices, it might anticipate to avoid wasting £3,088 for a voluntary redundancy and £1,150 for a obligatory redundancy. Some senior workers, nevertheless, might see potential redundancy funds halve.
The adoption of statutory redundancy funds has been authorised by the council’s governance committee and the organisation is now in conversations with commerce unions.
Southampton Metropolis Council has confirmed the change to Worker Advantages and was contacted for remark previous to publication.