Voluntary Severance Scheme

Overview 

The University has introduced a Voluntary Severance Scheme (VSS) to support deficit reductions and achieve a financially sustainable position. This scheme is available to all qualifying employees who wish to voluntarily resign in return for a severance payment. 

Key Points of the Scheme 

  • Eligibility: All employees with at least one year of service, except those on fixed-term contracts ending before January 31, 2025, or those who have already accepted another job offer. Adjunct Faculty are ineligible. 
  • Application Period: From October 3, 2024, to October 31, 2024. 
  • Severance Payment: One month’s basic salary for each year of service, capped at 12 months and a maximum of £50,000. 
  • Notice Period: Employees will work their full notice period, with faculty expected to teach until the end of the Spring semester. 
  • Settlement Agreement: Required for the severance payment,we pushed for the fee to be aligned with UCU costings and the University have agreed to cover up to £400 plus VAT for independent legal advice. Settlement agreements must be reviewed by a solicitor or other independent legal adviser before they are legally binding in the UK. 
  • Re-employment Restrictions: Employees leaving under the scheme cannot return to work for the University in any capacity for two years. 

Financial Considerations 

  • Tax Implications: Payments over £30,000 will be taxed, potentially at a higher rate, which could be refunded at the end of the tax year. Higher National Insurance contributions and student loan repayments will also apply. 
  • Payment Timing: The lump sum will be paid in your final month’s pay. 
  • Benefits eligibility: You may not be eligible for benefits you may wish to use a benefits calculator 

Leave Entitlement 

The Branch has raised concerns that faculty members, who are contractually obliged to take leave out of term time, will lose their annual leave if they take up the scheme. Faculty will be expected to teach until the end of the Spring semester, providing time to seek alternative employment while being paid until the end of May.  The University has responded to our concern as follows:  

“…whilst we do appreciate the majority of Faculty would not take leave during the semester, the employment contract does not completely rule this out (see extract 9.2 below). This means that some colleagues may take some leave during a semester”. They have also agreed that accrued leave may be paid but would be subject to tax.  

We advocated for payment of annual leave for all, rather than leaving individuals to negotiate on this issue in the terms of their settlement, as annual leave is a statutory right. We advise all those approved for VS to apply for their full remaining annual leave entitlement (calculated from September to the end of May; approximately 25 days) in writing to ensure there is written evidence in case of any dispute over this issue.

Independent Advice 

  • Legal Advice on Rights: ACAS 

 

UCU Support 

While your UCU Branch cannot offer financial or legal advice, members have access to UCU national legal advice through their membership (please contact the Branch for a referral and view UCU Legal information). We are here to support you and to fight for fair terms and conditions. 

For further details, please refer to the full Voluntary Severance Scheme document or contact HR. 

 

Richmond UCU Branch Executive Committee