NHS Redundancy and Redundancy Retirement Trade Union Consultation

1
NHS Redundancy and Redundancy Retirement Trade
Union Consultation

• Presentation prepared by Mike Jackson
• UNISON Senior National Officer (Health)

2
Why change the current arrangements?

• 2006 UK Employment Equality (age) regulations in
  force from 1st October- outlaws any
  discrimination in employment linked to age.
• Agenda for Change provisions Sec.16 (formerly
  Sec. 45 46 GWC) give entitlements according to
  employees age
• High probability of a legal challenge if not
  amended

3
Summary of Current NHS Redundancy provisions
(Sec.16)

• Age 18 21 Half weeks pay per year
• Age 22 40 One weeks pay per year
• Age 41 over Two weeks pay per year up to age
  41, plus 4 weeks pay for all years over 41
• Age 50 over Option to take enhanced early
  retirement worth as much as 6X annual salary
• Over 65 No entitlement

4
Example of current arrangements

• An employee with 20 years NHS service
  currently is entitled to
• 19 weeks pay if redundant aged 40
• 40 weeks pay if aged 41
• 56 weeks pay if aged 49
• 4.8 X Annual salary if aged 50
• Clearly age discriminatory

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Proposal for Consultation

• From Ist October 2006 an entitlement to one
  months pay per year of continuous service.
• No age cap at 65
• Minimum threshold of 2 years service
• Maximum qualifying length of service 24 years,
  i.e. a maximum payment of 104 weeks pay
• Staff over minimum pension age can take pension
  early without reduction (and receive any cash
  balance) or take redundancy payment.
• including special classes

6
Transitional arrangements

• New entitlements, i.e. I month per year from 1st
  October 2006
• Early retirement added years phased out over 5
  years
• Based upon maximum enhanced service at 30th Sept
  2006
• 100 to 30th June 2007
• Pro-rata reduction thereafter.

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Transition model
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Consultation on these proposals

• All comments to be received by 11th Sept.
• Employers to respond to NHS(E)
• Unions to consult internally (Unison responses by
  8th Sept. please)
• All comments to be considered jointly
• Staff Council to agree amendments to Terms
  Conditions Handbook 15th September
• Government to sign off

9
Questions to be considered

• Do you agree to a new flat rate of one months
  pay per year of continuous service based on max
  104 weeks payment?
• Should staff over minimum pension age be allowed
  to retire early on redundancy without actuarial
  reduction but with no added years?
• Should arrangements continue for staff to retire
  in the interests of the service?
• Should transitional protection be provided for
  until Sept 2011?