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Compulsory redundancies are normally only made as a last resort by National Health Service employers. In order to make best use of public money and to retain valuable skills and knowledge within the NHS, organisations will initially consider a range of alternatives to help reduce the number of compulsory redundancies. This may include cutting vacant posts and seeking volunteers. Organisations may also run a voluntary severance scheme to free up posts into which staff who would otherwise be redundant could be re-deployed.
Staff are not entitled to a redundancy payment if they unreasonably refuse either to apply for, or accept, suitable alternative employment within their own or other NHS employer; or where they obtain suitable alternative employment with the same or another NHS employer within four weeks of their termination date.
New NHS redundancy terms came in to effect on 1 April 2015 and include limiting payments to a maximum of £160,000 for employees earning £80,000 or more and who have at least 24 years of service. The Government announced plans in the Queen’s speech to legislate to put an end to taxpayer funded six figure redundancy payments.