Case studies

Case study 1

An employee on grade 3A (SCP 29) earning £24,892 a year, who is 45 years of age with 15 years' service at the point of leaving wants to apply for voluntary severance. What severance payment would they receive?

Statutory entitlement

In line with employment legislation the employee is entitled to receive 17 weeks statutory pay. This is determined by their age and length of continuous local government service.

Statutory entitlement plus enhancement of payment equivalent to 12 weeks pay

If the employee's application was formally approved based on this enhancement they would receive 17 weeks statutory pay, outlined above, plus an additional 12 weeks giving a total of 29 weeks pay.

The calculation would be based on their actual week' pay of £477.41 per week.

The employee would receive £477.41 x 29 = £13,844.89 enhanced severance payment.

Time limited offer of statutory number of weeks pay multiplied by 2.2

If the employee's application was formally approved based on this enhancement they would receive 2.2 times their 17 weeks statutory pay, outlined above, giving a total of 37.40 weeks pay.

The calculation would be based on their actual week's pay of £477.41 per week.

The employee would receive £477.41 x 37.40 = £17,855.13 enhanced severance payment.

Therefore, if the employee submitted a voluntary severance application* before the 30 June 2014 and their application* was formally approved they would receive an enhanced severance payment of £17,855.13 based on the 'time limited offer of statutory number of weeks pay multiplied by 2.2' as this is most financially attractive offer for them.

It is important to note:

  • If the employee submitted a voluntary severance application* after the 30 June 2014 but before the 31 March 2015 and their application* was formally approved they would receive a enhanced severance payment of £13,844.89 based on the 'statutory entitlement plus enhancement of payment equivalent to 12 weeks pay' as the time limited offer will have closed.
  • If the employee submitted a voluntary severance application* on or after the 1 April 2015 they would receive a severance payment based on the options available at that time.

*This is subject to the terms and conditions of the scheme.

Case study 2

An employee on grade 3A (SCP 29) earning £24,892 a year, who is 25 years of age with 5 years' service at the point of leaving wants to apply for voluntary severance. What severance payment would they receive?

Statutory entitlement

In line with employment legislation the employee is entitled to receive 4 weeks statutory pay*. This is determined by their age and length of continuous local government service.

Statutory entitlement plus enhancement of payment equivalent to 12 weeks pay

If the employee's application was formally approved based on this enhancement they would receive their 4 weeks statutory pay, outlined above, plus an additional 12 weeks giving a total of 16 weeks pay.

The calculation would be based on their actual week's pay of £477.41 per week.

The employee would receive £477.41 x 16 = £7,638.56 enhanced severance payment.

Time limited offer of statutory number of weeks pay multiplied by 2.2

If the employee's application was formally approved based on this enhancement they would receive 2.2 times their 4 weeks statutory pay, outlined above, giving a total of 8.80 weeks pay.

The calculation would be based on their actual week's pay of £477.41 per week.

The employee would receive £477.41 x 8.80 = £4,201.21 enhanced severance payment.

Therefore, if the employee submitted a voluntary severance application* before the 30 June 2014 and their application* was formally approved they would receive a enhanced severance payment of £7,638.56 based on the 'statutory entitlement plus enhancement of payment equivalent to 12 weeks pay' as this is most financially attractive offer for them.

It is important to note:

  • If the employee submitted a voluntary severance application* after the 30 June 2014 but before the 31 March 2015 and their application* was formally approved they would receive an enhanced severance payment of £7,638.56.
  • If the employee submitted a voluntary severance application* on or after the 1 April 2015 they would receive a severance payment based on the options available at that time.

*This is subject to the terms and conditions of the scheme.

This page was last updated on 31 January 2014

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