Financial entitlements
Last updated:10.1 The school will need to follow the Local Authority’s financial regulations in respect of redundancy costs and severance payments in schools. Costs are generally charged to the school’s budget although they may be able to apply to the Council for some contingency funding.
10.2 An employee who is dismissed by reason of redundancy will be entitled to a redundancy payment providing they have at least two years’ continuous service with the Authority or related employers in line with the Modification Order 1999 (see below). Where an employee unreasonably refuses an offer of suitable alternative employment, no redundancy payment is payable.
10.3 Redundancy pay is calculated based on actual salaries not the statutory redundancy pay cap, as permitted by the Teachers (Compensation for Redundancy and Premature Retirement) Regulations 1997). Appendix 4 of the Toolkit explains this further.
10.4 Under the Redundancy Payments (Continuity of Employment in Local Government) Modification Order 1999, continuous employment with more than one local authority or other specified employer, is counted as continuous service with one employer, both for the calculation of a redundancy payment and in the disqualification from payment in certain circumstances where an offer of further employment is accepted.
Consequently, a redundancy payment will not apply where the employee, still in employment with the Local Authority, receives an offer of employment, with another local authority or other specified body, commencing within four weeks after the end of the current contract of employment. In cases where the current contract ends on a Friday, Saturday or Sunday, the redundancy payment will not apply where employment commences on or before the fifth Monday following the end of the current contract. Where an offer of employment with another local authority or other specified body is made after the employee has left before the fifth Monday after their contract has ended with The Buckinghamshire Council the employee would still be entitled to a redundancy payment.
10.5 For any employee who has transferred to a school because of TUPE, their existing T&Cs in relation to redundancy payments will apply.