Decision details

Budget Strategy 2012/13 - Proposed Change to the Council's Redundancy Scheme

Decision Maker: Cabinet

Decision status: Approved

Is Key decision?: Yes

Is subject to call in?: Yes

Purpose:

The Cabinet will be presented with a progress report on the budget setting process for 2012/13 and asked to consider appropriate proposals that would enable the Council to set a balanced budget for 2012/13

Decisions:

The Cabinet Member for Customer Services and Human Resources presented a report on proposed changes to the Council’s current redundancy scheme moving from 66 weeks’ pay at maximum to 45 weeks’ pay at maximum.

 

The Cabinet Member advised that the current scheme which offered 66 weeks’ pay at maximum could no longer be sustained due to the financial pressures faced by the Council, and local government in general.  There was, however, an acknowledgement that staff affected by the current savings proposals should be able to benefit from the current scheme arrangements and it was therefore proposed to have staggered implementation arrangements. 

 

The Leader of the Council reported that stemming from the latest discussions with Union representatives on the proposals, an undertaking had been given to suspend the implementation of the proposal to move to 30 weeks’ pay at maximum to allow further discussions between the Council and Unions on possible alternative proposals.

 

Cabinet agreed:

 

(i)  That the Council’s policy on redundancy, as required by Regulation 7 of the 2006 Local Government Act (Early Termination of Employment) (Discretionary Compensation) (England and Wales), be amended as follows:

 

a.  For redundancy notices issued on or after 1 December 2011, the enhanced redundancy compensation payments to LBBD and schools non-teaching staff be reduced from x2.2 of the equivalent statutory redundancy weeks to x1.5 of the equivalent statutory redundancy weeks (i.e. up to 45 weeks’ pay at maximum, depending on age and service);

 

b.  That where further savings proposals are made for the 2012/13 financial year in advance of the setting of the budget by the Assembly on 22 February 2012, the arrangements in (a) above be extended for a comparable period of time to those staff affected to enable them to volunteer for redundancy at the enhanced rates;

 

(ii)  That the above revisions to the redundancy scheme be recommended for adoption by Governing Bodies of schools; and

 

(iii)  That the option of implementing the statutory redundancy scheme (i.e. up to 30 weeks’ pay at maximum, depending on age and service) be suspended pending further discussions between the Council and Unions on possible alternative proposals.

Report author: Tracie Evans

Publication date: 25/11/2011

Date of decision: 22/11/2011

Decided at meeting: 22/11/2011 - Cabinet

Effective from: 01/12/2011

Accompanying Documents: