NORTHERN IRELAND FURTHER EDUCATION COLLEGES. VOLUNTARY EXIT SCHEME 1 October 2018 to 31 March 2019

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1 Introduction NORTHERN IRELAND FURTHER EDUCATION COLLEGES VOLUNTARY EXIT SCHEME 1 October 2018 to 31 March 2019 N.B. THE SCHEME IS SUBJECT TO BUSINESS CASE APPROVAL BY DfE AND DFP AND FUNDING 1. This Scheme is one mechanism through which Colleges will effectively manage their staffing requirement whilst reducing pay bill costs during this period of financial cuts. The scheme will be funded from the Government Restructuring and Reform Initiative (RRI) budget and the sector will be required to submit a business case for approval in order to access funding with any release of staff being subject to funding being available and the business needs of the Colleges being met. 2. Colleges will work in partnership with recognised trade unions and will ensure the Scheme is applied fairly to those eligible. 3. Colleges recognise the need to retain, develop and maintain a staff profile that can deliver their strategic objectives and therefore this Scheme will identify the processes applicable to ensure sufficient numbers of highly skilled staff are available in each relevant area to ensure that current and future needs of the Further Education Sector can be met. 4. This Scheme is a non-contractual Scheme which provides an opportunity for staff to apply for voluntary exit. This is not a voluntary early retirement scheme. Where a voluntary exit package is agreed with a staff member, there will not be any subsequent re-engagement or re-employment of that staff member, by the Sector from which they exited, in any capacity, for the period covered by the compensation payment. Please refer to the FAQs document for further information on re-employment in the FE Sector. 5. Due to the voluntary nature of the Scheme, the effect on Departments and business areas will not be known until applicants are selected to leave. However, as a consequence of the need to exit a number of staff in a short period of time, there may be a need to redeploy staff to maintain business continuity. Whether or not you apply for voluntary exit, there is no guarantee that you will be able to remain in your current post as a result of the impact of the Scheme. 6. Posts will not normally be replaced but where replacement is necessary this will be achieved in a cost effective way e.g. activity is reorganised and can realistically be sustained, another post is not replaced or appointments are made at lower levels allowing for better staffing structures or where the existing skills profile is obsolete. 1

2 7. The Scheme has a fixed budget within which exit costs will be contained. Colleges retain the right at all times to turn down any application for voluntary exit where there is a need to retain specific skills or experience or where the level of funding provided is insufficient. Seeking to achieve value for money will be a consideration in this exercise. 8. The qualifying date for the purposes of the scheme is 1 October Eligibility to Scheme 9. The following categories of staff are eligible: i. Staff who, at the qualifying date, are permanent College employees, whether full-time or part-time; ii. iii. iv. Staff on secondment; Staff who, at the qualifying date, are on career break or have agreed a career break commencement date; Staff who have been formally notified that: a. a disciplinary investigation or capability procedures have commenced; or b. they are subject to such action which could potentially lead to dismissal before the College selects those staff who are to leave under the scheme; or c. they are being considered for ill health retirement. However, a decision on selection under the Scheme will not be taken until the relevant procedures have been concluded, including all appeal stages. Where staff are formally notified that they have become subject to a disciplinary investigation or capability procedures (which potentially could lead to dismissal) between the date of selection for release under the scheme and their leaving date, their application will be put on hold until the disciplinary or capability proceedings have been concluded including all appeal stages. 10. The following categories of staff are not eligible: i. Casual, temporary and fixed term staff; ii. Staff who have been notified that they are due to transfer to another employer under TUPE arrangements ; 2

3 iii. iv. Staff who have, by the qualifying date, an agreed exit date due to resignation, ill-health retirement, voluntary exit under another scheme after the qualifying date or who have been given a dismissal date for disciplinary or capability. Where a staff member intends to avail of any entitlement to appeal under any of the above processes, they may apply for voluntary exit but a decision on their selection under the Scheme will not be taken until the appeal process is completed; Staff who have notified the College, by the qualifying date, of their intention to retire. Benefits Payable on Leaving Under Voluntary Exit Scheme 11. The compensation paid on voluntary exit under the terms of this scheme is 1 months gross salary for every full year of continuous service up to a maximum of 21 months. Gross salary is defined as your full-time rate of basic pay before deduction of employee s national insurance contributions and tax but does not include overtime or additional hours payments. 12. In all cases, the payment for part time staff will be calculated pro-rata based on their actual salary. The payment for staff on variable contracts will be based on their earnings over the previous 6 months worked or the average of their earnings over the previous 12 months worked, whichever is the greater. 13. Exit lump sum payments will be made having regard to the relevant legislation on taxation which allows the payment of up to 30,000 without any deduction of tax or national insurance contributions. 14. This is a voluntary decision by the staff member to leave employment at the College and is not a redundancy scheme. Statutory Redundancy Pay does not apply and will not be payable. The employment will end by mutual consent. 15. Staff must take their own advice in arriving at a decision to apply for and accept an offer of voluntary exit. Pensions Members of NI Teachers Pension Scheme 16. Members of NI Teachers Pension Scheme aged 55 and over, and who have not reached their normal scheme pension age, will be able, should they wish, to take an actuarially reduced pension. Those who have reached their normal scheme pension age will be able, should they wish, to take an unreduced pension. 3

4 Members of NILGOSC 17. Members of NILGOSC aged 55 and over, will be able to take an unreduced pension. 18. In all cases, staff should make enquiries regarding their personal entitlements directly to their relevant pension scheme and satisfy themselves regarding any pension options which they wish to explore. Links to the relevant pension schemes are available at: NILGOSC NITPS Notice 19. Staff selected will be entitled to their normal contractual notice. This notice will commence from the deadline for submission of expression of interest, should an offer of voluntary exit be accepted. In exceptional cases, Colleges may pay all or an element of the notice in lieu, i.e. payment in lieu of notice (PILON). In circumstances where an individual is absent due to sickness, and where it is anticipated that this absence will extend up to or beyond the planned termination date, the College may implement the leaving date with immediate effect. PILON will be made at this time. Annual Leave. 20. Management and staff are expected to make all reasonable efforts to facilitate annual leave requests prior to exiting under the scheme. It is the responsibility of staff accepted under the scheme to make every effort to take their annual leave prior to their leaving date, subject to normal line manager approval. In exceptional circumstances and with prior approval, payment in lieu of untaken annual leave will be made through payroll in the staff member s last month s salary. Terms of Offer 21. Staff are free to withdraw their application at any stage of the process with the following exception. Once you have been selected and provided with a formal offer, you will be required to confirm your acceptance or rejection of the offer. At that stage your acceptance or rejection will be binding and you will be unable to change your mind afterwards. 4

5 22. Your acceptance of the binding offer indicates that you also accept the terms relating to subsequent re-engagement within the Northern Ireland Further Education Sector as set out in this scheme and the FAQs document. 5