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Press release: New redundancy compensation agreed for NHS staff25 Oct 2006 New redundancy arrangements are to be introduced to the NHS with immediate effect. Anyone unfortunate enough to be made redundant from 1 October this year under the new arrangements will receive a redundancy package that no longer depends upon how old they are. The arrangements were drawn up and agreed between NHS Employers and NHS trade unions and endorsed by the Department of Health, Scottish Executive and Welsh Assembly. The proposals were subject to wide consultation among NHS organisations and trade unions. The arrangements are a result of the new age discrimination legislation, which came into force on 1 October this year. The legislation outlaws discrimination on age grounds unless covered by an exemption or "objectively justified". The existing NHS redundancy and early retirement arrangements had a number of age related thresholds that gave different benefits to people of different ages. The new arrangements will mean: * everyone will receive a flat rate of one month's pay per year of service with a maximum of 24 months * staff over the minimum pension age will able to retire early on redundancy with no reduction in the value of their pension * staff will be able to take early retirement in the interests of the service without the value of their pension reducing
NHS Employers project manager Tim Sands said: "The new arrangements will be fairer for everyone and will help ensure NHS trusts comply with the new age discrimination legislation. Employers responding to the consultation generally supported the new arrangements although some said they were worried about short-term transitional costs. "We accept that at the beginning of the transition, redundancy costs are likely to rise. However, we have to consider the new legal requirement and there is a greater financial risk to trusts if they don't comply with this requirement. In longer run, once the transitional arrangements are over, on average trusts who have a redundancy programme with an age profile that reflects the age profile of their workforce should see costs fall by around 20%." Notes for editors* In November 2005, the Department of Health and National Assembly for Wales asked NHS Employers to lead a review of current redundancy arrangements in the NHS as a result of the new age discrimination legislation coming into force in October 2006. It was subsequently agreed in partnership that the Scottish Executive would join the existing review. The NHS trade unions agreed to join the review and the outcome was agreed at the NHS Staff Council. * The new arrangements will affect all UK healthcare staff working in NHS organisations, apart from those employed by GP practices, who have their own arrangements. * The Department of Health has guaranteed full protection arrangements for staff who are part of a redundancy programme announced before September 2006 and who have agreed to stay on temporarily to assist with a transition or who have been offered guaranteed employment which runs beyond 1 October 2006. This is to help staff who may be made redundant as part of an NHS reconfiguration programme. Contact detailsThe press office provides a comprehensive service to keep journalists informed about the work of NHS Employers. If you have a media enquiry, please contact the press office team:
For out of hours media enquiries, please contact the duty press officer on 07880 500726. Last reviewed 25 Oct 2006 |
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