Human Resources Services
Voluntary Severance 2009
At the beginning of April the Principal explained in an all-staff email that the University of Stirling’s grant from the Scottish Funding Council has been cut by 1.6 per cent.
This is exacerbated by continued cost pressures, mostly related to staff salaries and pension costs.
Since then, senior management have analysed the academic and financial implications, and continue to consult with heads of department and service directors to determine the best way ahead. The outcome of the analysis confirms that we are addressing a funding gap of around £4.4 million in 2009/10.
The University is working on a comprehensive development plan for its future direction, which will be put to Court on 22 June 2009, and consideration of measures to reduce costs will continue, including consultation with the Campus Unions.
While much effort is being given to finding ways to reduce our non-staff costs, it appears inevitable that some reduction in staff costs must be achieved in order to ensure the financial sustainability of the University.
At a recent special meeting of University Court, senior management were directed to address the underlying deficit and bring it into balance in 2009/10.
1. Funds have therefore been made available to provide for a number of voluntary severances. The Voluntary Severance scheme is intended as part of the University's sustainability plan outlined in the “Future Directions” paper to be presented at Court on 22 June, and is part of our ambition to avoid redundancies. Staff leaving the university under the VS scheme will be leaving by voluntary agreement and will not be entitled to redundancy payments.
Eligibility and criteria
2. Expressions of interest will only be taken forward in the management interest, meeting the following requirements:
2.1 Consistent with Department and University strategic objectives, which must include evaluation by Head of Department/Service (see also 3.2) of potential efficiency improvements, current and projected revenue generation and costs, and/or the need for a reduced cost base.
2.2 In the case of applications from academic staff, the HoD’s evaluation is expected of the net impact on research performance and costs, and/or teaching workloads and efficiencies.
2.3 Unless a variation is otherwise agreed with the relevant HoD/S, there should be no presumption of replacement posts.
2.4 Not normally applicable for staff who have already indicated/agreed their end resignation, end of contract or retirement from a University post at the date of publication of this scheme ie 10 June 2009.
3. Expressions of interest – by 14th September, 2009
3.1 Expressions of interest should be made direct to the HR Department by 14th September, 2009, but should where possible be made prior to this date. Forms available from HR & OD Department or download from the link at the foot of this document.
3.2 The HR Department will then notify the relevant Head of Department/Service and seek an evaluation of the impact of the potential severance as above.
This does not commit the individual or the University to acceptance of terms at that point, but will enable consideration of the cases presented, the opportunity to provide detailed severance terms to individuals, and for costings to be calculated.
4. Approval and Offer of Terms
The applications presented will be considered jointly by the Deputy Principals, University Secretary, Director HR & OD, Deputy Secretary and Director of Finance. Heads of Department and individuals will be advised as soon as possible.
Individuals will be required to indicate their acceptance or otherwise of terms by the 30th September,2009 and terminate not later than end October 2009, or on reduced terms (see below) end December 2009, unless otherwise agreed and in the management interest.
5. Communication and Clarification with HR
HoDs or individuals should consult with their HR Partner on any issues or need for clarification of timescales or process
6. Terms
General:
All terms quoted are inclusive of pay in lieu of notice and pay for holiday entitlement at time of termination.
These terms are not available to any staff who have previously taken advantage of University of Stirling severance schemes and been re-employed in any capacity
Note that payment up to £30,000 will be free of tax (other than any holiday pay, which is taxed at normal rates); any amount exceeding this will be subject to normal tax rates.
6.1 Terms for staff with more than two years’ service at 31st July, 2009, will be:
One year’s gross pay for all staff who terminate service by end October, 2009. This would reduce by two months’ gross pay for each month thereafter unless termination date is extended by agreement and at the request of the HoD. (see above)
6.2 Terms for staff with less than two years’ service at 31st July, 2009 will be:
A payment equivalent to 25% of service up to a maximum of six months gross pay for all staff who terminate service by end October, 2009. This would reduce by one month’s gross pay for each month thereafter unless termination date is extended by agreement and at the request of the HoD.
Martin McCrindle
Director of Human Resources & Organisation Development
10th June, 2009
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HR Adviser Team University of Stirling Stirling FK9 4LA UK |
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Tel: + 44 (0) 1786 467779 |
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Email: hradmin@stir.ac.uk |
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Web: www.hr-services.stir.ac.uk |
Any comments/enquiries relating to this website, please let us know hradmin@stir.ac.uk
