Most recently, the PDA has seen a flurry of individual enquiries about voluntary redundancy (VR), as some ICBs have been asking for expressions of interest for VR. However, at the time of writing, there is still no indication that any central government funding will be available for VR in ICBs, and therefore, there is no guarantee that there will be VR available. As a union, whenever there is a large redundancy situation, the PDA would always advocate for a round of VR before any compulsory redundancies are made.
The difference between voluntary and compulsory redundancy
Compulsory redundancy (CR) applies when a post is no longer required by the organisation and there is no suitable alternative employment to offer an employee. This can be because the organisation is either changing what it does, doing things in a different way, or changing location or closing down.
VR is where employees are asked if they’d like to volunteer for redundancy. There must be a fair and transparent selection process, and employees are not automatically able to take VR just because they apply.
Compulsory redundancy
The details of the NHS compulsory redundancy scheme can be found in section 16 of the Agenda for Change staff handbook. The PDA also has a general briefing on redundancy which sets out employees’ rights, but is not specific to the NHS.
To qualify for NHS redundancy payment, a pharmacist must have a contract of employment under NHS Terms and Conditions with an NHS Employer and at least 2 years of continuous service, either full-time or part-time. Service with one or more NHS employer which has not been ‘broken’ for more than one statutory week (measured Sunday to Saturday) is classed as continuous service.
Voluntary redundancy
An employer should be providing employees with FAQs about VR but below are some key facts that may be helpful to know:
- If an employees expresses an interest in VR, this does not commit them to taking VR if they choose not to proceed. There should be a separate application process.
- Applying for VR does not guarantee VR. The employer will determine how many VR applications they can make and then will advise applicants as to whether they have been successful or not.
- An employer may set out some qualifying criteria for VR which excludes employees who are currently under a disciplinary sanction or subject to capability proceedings.
- For those who do take VR, pay in lieu of notice (PILON) may not be offered, and they may be asked to agree to an earlier leave date to that of their contractual notice period if their application is approved. However, this should be subject to negotiation and for PDA members a PDA Workplace Representative may be able to assist them with this.
- Employees may be asked to sign a settlement agreement which is a legal agreement about the end of the contract between themselves and their employer. In law, employees are required to get legal advice on the agreement and the PDA can assist members with this. The settlement agreement will set out the fee that the employer will pay to enable employees to get this advice. The PDA will provide advice on the settlement agreement and invoice the employer directly for this. The PDA will not charge members any more than the amount the employer has agreed to pay. If the advice needed on an employees settlement agreement is not straightforward, the PDA will advise them whether they should seek independent legal advice on the settlement agreement.
The PDA advises members to check that their continuous service date is correct.
The PDA cannot advise members whether to apply for VR or not. This is a personal choice, which needs to be made based on an individuals own personal, financial circumstances. A pharmacist should think carefully about whether voluntary redundancy is right for them, including how it will affect things like claiming benefits or their mortgage.
Pharmacists should check their mortgage protection policy to see what it says about voluntary redundancy. Voluntary redundancy is usually excluded, meaning the insurance won’t pay an individuals mortgage payments after their redundancy.
Some may wish to take independent financial advice. Those with any individual queries, specific to their own position can contact the PDA Member Support Centre.
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