The Voluntary Severance Scheme is only open to staff who are ‘in scope and at risk’. These individuals will have received a communication confirming that they are eligible to apply for voluntary severance.

No. If members of staff have given notice of their intention to leave and that has been accepted by the University, they will not be accepted for voluntary severance.

Individuals are still eligible to apply for voluntary severance if they are on maternity leave/parental leave or extended leave if they are in scope and at risk.

The scheme opened on 22 March 2022.

The scheme will close on 22 April 2022.

If I am interested, how do I find out more about voluntary severance and apply?

Staff who are eligible to apply will have been sent details of the scheme and how they can apply. Staff can also discuss this confidentially with their line manager, or their People and Organisational Partner. If individuals have not been informed that they are eligible to apply, they will be unable to apply for voluntary severance.

No. Applications will be considered on the basis of University requirements. This means that where an individual holds a critical skill which is not available elsewhere in the area and/or the loss of this person would impact on the ability to deliver core activity, the University is likely to decline the application.

Colleagues who leave through voluntary severance will not be eligible to re-join the University, or an associated employer, in any paid capacity directly or indirectly (including agency work) for a period of at least three years from the agreed leaving date.  Associated employers includes any subsidiary company of the University.

Applications for voluntary severance will be considered on the basis of University needs, the skills and experience of the individual and/or whether the loss of an individual would impact on the ability to deliver core activity. A panel of senior managers will consider each application and assess on the criteria identified above.

Applications will generally be considered after the closing date; however in some cases it may be possible to inform staff of the outcome of their application before this date.

If individuals are unhappy with the outcome of their application they should discuss this with their People and Organisational partner. There is however no right of appeal against the decision.

The voluntary severance calculation is based on the contract of employment applicable at the time the settlement agreement is drawn up. Agreements will take into consideration annual increment and cost of living increases, if these become applicable before a termination date. In all cases the drawing up of the agreement takes into account the circumstances of the applicant.

A Settlement Agreement is an individual legal agreement made between the University and an employee, setting out the terms of voluntary severance. It includes details such as the payments due and the agreed leaving date as well as confirming that the individual accepts the severance arrangements. Employees will need to seek legal advice before signing a Settlement Agreement. The cost for this advice, up to £350 (plus VAT), will only be paid by the University once the Agreement has been signed.

There is no requirement to provide comments in this section unless individuals would like to offer further supporting or contextual information about the reasons for their application.

Information provided may be taken into account when applications are considered.

You have simply sought to exercise your right to apply for VS and there will be no negative impact on your future career prospects. Your application will be kept confidential and shared only with decision making panels and People and Organisational Development colleagues who are managing the VS process.

No. The circumstances surrounding each VS scheme are different and can change with time – just because you have been turned down on a previous occasion, it doesn’t mean your application won’t be successful this time.

Applications will be considered on the basis of operational requirements, whether the skills, knowledge and/or experience of individual applicants should be retained by the University, and the potential costs to the University of accepting or rejecting individual applications.

It is important that you fully consider your application for VS before submitting, based on all the information available. It would be very unhelpful if you did withdraw your application once it had been accepted, as this would have an impact on other operational decisions. That said, until the formal settlement agreement has been signed by you and a solicitor, you may withdraw your application. However, if you have already consulted with a solicitor, you will be responsible for paying their fees.

The parameters of the voluntary severance package are as follows:

• Severance payments will be calculated using an individual’s actual basic salary
• Capped at a maximum payment equivalent to 30 weeks’ pay
• Payments will be calculated using a multiplier of 2.25 weeks’ pay per completed year of service
• Notice periods will either be worked, payment made in lieu of notice, or a combination of the two, as determined by the University 
• Given that VS applications are at the request of the employee, the University will not consent to payment of any additional pension costs, or enhancement of pension benefits

All Voluntary Severance payments will be paid inclusive of statutory redundancy provisions and will be subject to HMRC rules. All successful applicants will be required to enter into a legally binding settlement agreement with the University.

A Voluntary Severance payment calculator is available here.

You are not able to pay the 'pay in lieu of notice' element into your pension scheme, as this is subject to tax and National Insurance deductions. However, you can pay some or all of the rest of the severance payment amount into your pension scheme.  You will need to discuss your individual situation with the Pensions Team and confirm the amount you wish to be paid into the pension scheme so that this can be specified in your settlement agreement.

The first £30,000 of your severance payment will not be subject to tax, National Insurance or pension deductions. Any amount over £30,000 will be subject to tax and National Insurance deductions, but not pension deductions.  All payments as 'pay in lieu of notice' will be subject to tax and National Insurance deductions.

The VS calculation is based on your substantive, contractual salary at the time the settlement agreement is drawn up. This will include your basic salary plus any other contractual elements of your salary, for example shift pay, market supplements.  If you are on secondment, the payment will be based on the contractual salary in your substantive role. Agreements will take into consideration annual increment and cost of living increases if these become applicable before a termination date. In all cases, the drawing up of the agreement takes into account the circumstances of the applicant.

Temporary payments such as acting up allowances, exceptional duties allowances and honoraria received in relation to an additional role or responsibilities, are not included when calculating VS payments.

In discussion with your line manager, where possible you will be required to take any outstanding annual leave prior to your leaving date.  However, you will be paid for any outstanding holiday which you are entitled to but have not taken at your leaving date.

Where possible, at the end of the month of leaving.

You will need to read the wording of your insurance policy carefully to ascertain whether it precludes voluntary redundancy. The University will be prepared to confirm to the insurance company that it is undergoing a process of headcount reduction and that your reason for leaving was voluntary redundancy. We will not be able to confirm to the insurance company that you would have been made redundant compulsorily if you had not volunteered.

A statutory redundancy payment may be payable if the member of staff has at least two years’ continuous service at the date their contract will end.

Employees would be provided with details of their statutory redundancy pay and how it is calculated by letter confirming their formal notice of redundancy. In addition, the University will pay, by way of enhancement, an additional 10% of the total redundancy figure to the employee (subject to a cap of a maximum of 30 weeks’ pay). This is set out as follows:

• For each complete year of service up to a maximum of 20 years, employees are entitled to:
• For each year of service under the age of 22: half a week’s pay*, plus an additional 10% of the redundancy calculation (not inclusive of pay in lieu of notice)
• For each year of service at age 22 but under 41: one week’s pay*, plus an additional 10% of the redundancy calculation (not inclusive of pay in lieu of notice)
• For each year of service at age 41 or over: one and a half week’s pay*, plus an additional 10% of the redundancy calculation (not inclusive of pay in lieu of notice)

*A week’s pay is subject to the maximum statutory limit of £538 (from 6 April 2020) which is reviewed annually on 6 April.         

• Compulsory redundancy payments are capped at a maximum payment of 30 weeks.
• Notice periods will either be worked, payment made in lieu of notice, or a combination of the two, as determined by the University.

Individuals who leave on VS will either work their notice period, or be paid in lieu of notice.

Each individual’s contractual notice period is determined by the University terms and conditions of employment. Your notice (subject to successful application and offer of VS) will be 'served' to you by the University from the date that a settlement agreement is issued, of when the decision to accept your application is formally confirmed in writing from People and Organisational Development.

The notice period you are available to work will be the time between the date notice is served to you, and your leaving date. For the remainder of your notice period, you will be paid in lieu of notice. This element of your payment will be subject to the usual tax and National Insurance (NI) deductions as required by HMRC.

Compulsory redundancy payments are not inclusive of notice pay. In a compulsory redundancy situation, colleagues would either work their notice period or be paid in lieu

If there is insufficient take-up of the Voluntary Severance Scheme, then subject to consultation and in line with the principles agreed between the University and the trade unions, we will then consider the need to move to compulsory redundancy. This will be subject to Board approval, however this will only occur after all other options have been fully explored.

Yes. If you require a reference for future employment please advise People and Organisational Development Operations when applying for voluntary severance. People and Organisational Development operations will provide a standard employment reference, as part of the Settlement Agreement, detailing length of service, posts held and key responsibilities.

No. IT policy and guidelines clearly state that all University devices must be returned. You can see full information at the University of Manchester Computer Delivery Service page.

The University will offer all staff who accept VS access to outplacement support – a service to help former employees transition to new jobs after leaving. The kind of things offered include support to consider career options and advice about job searches, applications and interview skills.

Under the University Retirement policy, staff who choose to retire may apply for pre-retirement leave. Providing they meet the relevant criteria (outlined in the policy), staff may be eligible for up to 6 days’ leave – based on length of service and complete months’ notice given of intention to retire. 

If you have been accepted for voluntary severance and it is your intention to also retire, you can apply for pre-retirement leave. You will need to confirm in writing that you intend to retire from the University and draw your pension. The "notice period" would be considered to start from the date you receive confirmation that your VS application has been accepted. Applications should be made to your line manager using the form provided in the policy.

Yes, a reference can be included as part of the settlement agreement.