Voluntary severance is becoming an increasingly common option within universities across the UK, and Lancaster is no exception. As institutions look to restructure and manage budgets, many employees are being offered voluntary severance packages. Understanding what voluntary severance means, how it differs from redundancy, and what your legal rights are can help you make an informed decision before signing any agreement.
What Is Voluntary Severance?
Voluntary severance is an arrangement where an employer offers staff the opportunity to leave their employment in exchange for a financial package. It is often used by universities to reduce staff numbers without resorting to compulsory redundancies. The decision to apply is usually up to the employee, but it must also be approved by the employer. Once accepted, your employment ends by mutual agreement, and you receive a severance payment based on your length of service, salary, and the terms set by your institution. It’s important to note that voluntary severance is not the same as redundancy for legal purposes, and it usually does not automatically entitle you to statutory redundancy pay unless the terms of the scheme explicitly provide for it.
Why Universities Offer Voluntary Severance
Universities like Lancaster may offer voluntary severance during times of restructuring or when faced with funding challenges. These schemes allow the institution to manage staffing levels in a more flexible and less confrontational way. It can be presented as an opportunity for staff to leave on agreed terms rather than facing uncertainty about future job security. While this can seem like an attractive option, it’s important to understand the implications of leaving under a voluntary severance scheme, especially where your departure could affect your pension, benefits, and future career options. In some cases, universities will present the offer as a time-limited opportunity, but this does not mean the terms are fixed or cannot be negotiated.
Key Legal Considerations
If you are offered voluntary severance, it is essential to review the terms carefully. The agreement will usually include a severance payment, the termination date, and conditions such as confidentiality clauses, waivers of claims, and possible post-employment restrictions. You may also be asked to sign a settlement agreement. This is a legally binding document that will waive your right to bring certain employment claims in the future, such as claims for unfair dismissal or discrimination. For the agreement to be legally enforceable, you must obtain independent legal advice from a qualified adviser. This is not just a recommendation but a statutory requirement. Legal advice can help you ensure you are not giving up entitlements such as accrued holiday pay, pension contributions, or the right to claim for any unpaid sums or benefits due under your contract.
How Voluntary Severance Differs from Redundancy
Voluntary severance differs from redundancy because it is initiated by mutual consent rather than through a formal selection process. In redundancy, the employer identifies roles for removal and is required to follow a defined consultation and selection process, often based on objective criteria. In contrast, voluntary severance allows employees to express interest in leaving, and the terms of the exit are typically negotiated. However, both outcomes result in the termination of employment, so it is important to weigh up how each scenario might affect your financial stability, employment history, and future entitlements. Unlike redundancy, there is generally no statutory framework governing voluntary severance, which makes it even more important to scrutinise the offer carefully.
Getting Legal Support in Lancaster
If you are part of the Lancaster University community and are considering voluntary severance, you should seek advice from a qualified legal professional. Understanding your rights and reviewing your agreement before signing can protect your financial and professional future.
For more information, contact us on 01524 907100, info@pre-law.co.uk or through our online enquiry form
