Salary sacrifice and redundancy pay
If you take part in a salary sacrifice scheme, it’s important to know how this affects your redundancy payment.
A salary sacrifice scheme is an arrangement between you and Essex County Council, where you give up or ‘sacrifice’ a portion of your salary in exchange for other, non-cash benefits.
Common salary sacrifice schemes include:
Redundancy payments are based on your final contractual weekly pay, which is shown on your last payslip. Since salary sacrifice reduces your taxable pay, it can also lower your redundancy payment.
To avoid this, consider opting out of salary sacrifice schemes like AVCs and childcare vouchers well before any redundancy date. This will help make sure your final payslip shows your full contractual pay, maximising your redundancy payment.
If you leave the childcare vouchers scheme you won't be able to rejoin, but you may be eligible for alternative government childcare schemes.
If you’ve bought extra holiday or bought a bike through the Cycle to Work scheme, you can’t change or cancel this as you’ve committed for the entire repayment period. If your role is at risk of redundancy, think carefully before signing up to these schemes as they can lower your final redundancy payment.
Returning to the council after redundancy
Except for voluntary redundancy, if you return to work for Essex County Council within 4 weeks of leaving the council, your continuous service will remain unbroken, but you will need to repay your redundancy payment.