Buckinghamshire Council Pay Policy Statement 2022

Last updated: 1 July 2022

8. Severance Payments

8.1 The Council adheres to the Governments Statutory guidance on the making and disclosure of Special Severance Payments by local authorities in England.

8.2 The statutory guidance defines Special Severance Payment examples, see below.

  • payments reached under a settlement agreement between the employer and employee to discontinue legal proceedings without admission of fault.
  • the value of any employee benefits or allowances which are allowed to continue beyond the employee’s agreed exit date.
  • write-offs of any outstanding loans.
  • honorarium payments.
  • hardship payments.
  • payments to employees for retraining related to their termination of employment

8.3 The Council approves Special Severance payments by the following process:

  • payments of £100,000 and above have been delegated for approval to SAPC, as set out in the Localism Act 2011.
  • payments of £20,000 and above, but below £100,000, must be personally approved and signed off by the Chief Executive, s.151 Officer, Monitoring Officer , with a clear record of the Leader’s approval.
  • payments below £20,000 must be approved by the Chief Executive, Monitoring Officer, and s.151 Officer.

8.4 As a Local Government employer, the Council must comply with its duties under The Redundancy Payments (Continuity of Employment in Local Government, etc.) (Modification) Order 1999.

8.5 In the event that an employee ceases to hold office and is eligible for a redundancy payment, such payment is determined in accordance with the Council’s redundancy policy and procedure that applies to all employees, or any protection rights accrued from a predecessor Council in Buckinghamshire where these have TUPE transferred to the Council.

Where the payment exceeds £100,000 this must be referred to the Senior Appointments and Pay Award Committee for consideration.

8.6 If an employee who is under notice of redundancy receives an offer of a job from another local authority or associated employer and accepts and starts working for the new employer within 4 weeks of the end of the individual’s employment with the Council, there is no dismissal for redundancy payment purposes and therefore the employee is not entitled to a redundancy payment. 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.

8.7 If the Council employs a Chief Officer already in receipt of a Local Government Pension Scheme pension, the Council will apply the normal pension abatement rules that apply to all employees.