6.3.5 There are three categories of early departure. Before you can launch any scheme you will need approval from the Scheme Manager, Cabinet Office. You will need to complete the relevant application forms and send to:

redundancyschemes@cabinetoffice.gov.uk

6.3.6 The categories are:

Voluntary Exit (VE)

This can be offered in the interests of workforce efficiency and where employers wish to reduce staff numbers, to support organisational changes, address promotion blockages and where there is limited efficiency. There is no compulsion on individuals to accept the offer; it is an agreement between the employer and employee.
There is a standard tariff of one month’s pay per year of service up to a maximum of 21 months’ pay for those under scheme pension age. Employers may offer more or less than the standard tariff subject to limits. To offer more than standard tariff, employers must have Scheme Manager approval.
Tapering of compensation will apply where the member is close to the scheme pension age. For members who moved into alpha from one of the PCSPS schemes on or after 1 April 2015, the compensation is tapered in relation to their Normal Pension Age (NPA) in alpha

For those over scheme pension age there is a maximum of six months' pay. For members who have moved into alpha from one of the PCSPS schemes, it is the alpha NPA which applies.

Voluntary Redundancy (VR)

This can be used in a variety of situations where the employer has identified business changes which may result in redundancies:

  • The work may be changing or reducing
  • The work will be done in a different way
  • The work will be stopping, or
  • The location of the work is changing/the office is closing.

A Voluntary Redundancy (VR) scheme must be offered before Compulsory Redundancy (CR) and the employer must have begun formal consultation with the Unions about possible redundancies before a scheme is launched. The VR scheme should cover at least all staff selected for redundancy, but if the scheme is run before selection is complete it may cover all those who are at risk (i.e. all those in the unit of redundancy, also known as the redundancy pool).
There is no compulsion on staff to apply for VR at this stage, but they must be aware they could be made compulsorily redundant at a later stage of the same scheme and receive CR terms. However, if an employee applies for VR but does not meet their employer’s criteria for release (or was never offered VR) they cannot be subject to the CR terms at a later stage of that redundancy exercise. Staff in this position will be entitled to the VR terms.

Employers must offer the standard tariff of one month’s pay per year of service up to a maximum of 21 months’ pay for those under scheme pension age.

Tapering of compensation will apply where the member is close to the scheme pension age. For members who have moved into alpha from one of the PCSPS schemes on or after 1 April 2015, the compensation is tapered in relation to their NPA in alpha.

For those over scheme pension age, there is a maximum of 6 months' pay. For members who have moved into alpha from one of the PCSPS schemes, it is the alpha NPA which applies.

Compulsory Redundancy (CR)

This is used in the same situations as Voluntary Redundancy (VR). However, individuals should first be offered VR, making it clear that they are at risk of CR, before employers move to a compulsory scheme. The CR scheme cannot cover anyone beyond the staff who were (or should have been) included in the preceding VR scheme.

Any member of staff who was turned down for VR (or was never offered VR) and is later made compulsorily redundant under the scheme linked to that VR scheme, will receive VR terms. This protection does not extend to anyone who did not apply for VR or refused an offer of VR linked to the CR scheme.

There is a standard tariff of one month’s pay per year of service up to a maximum of 12 months’ pay for those under scheme pension age.

Tapering of compensation will apply where the member is close to the scheme pension age. For members who have moved into alpha from one of the PCSPS schemes on or after 1 April 2015, the compensation is tapered in relation to their NPA in alpha.

For those over scheme pension age, there is a maximum of six months' pay. For members who have moved into alpha from one of the PCSPS schemes, it is the alpha NPA which applies.

Please note: Annex 6F contains further detailed information about VE, VR and CR. This includes further information on the tariffs, employer’s discretion, Scheme Manager approval, member’s options and other important information.

Published:
4 January 2022
Last updated:
11 May 2022