Reorganisation and redundancy

If you’re affected by a reorganisation, you’ll have opportunities to learn about the proposed changes, ask questions, and provide feedback.

Redundancy pay

You will be entitled to redundancy pay if your role is made redundant and you've:

  • worked continually for the council for 2 years or more, or 
  • have transferred from another local authority (and some other public bodies covered by the Local Authority Modification Order) with combined continuous service of 2 years or more

Both voluntary and compulsory redundancy payments are paid at the same level. 

Currently, we choose to make payments above the statutory minimum. 

How much redundancy pay you will get is based on:  

  • your age 
  • your length of service at the date you leave employment.  
  • your contractual weekly pay 
Redundancy payments based on age and length of service
Redundancy payments age band Payment per year of service within age band
21 and under  0.75 week (three quarters of a week)
22 to 40  1.5 weeks (one and a half weeks)
41 and over  2.25 weeks (two and a quarter weeks)

Redundancy payments are tax free up to £30,000.  

We use the ready reckoner to calculate redundancy payments (PDF, 144KB). 

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 

If you leave the council due to redundancy, you are welcome to apply for positions here in the future.   

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.  

If you leave the council due to voluntary redundancy, your re-employment will be restricted for at least 12 months and up to 3 years. See the Voluntary Redundancy section for more details. 

If you get a job at another local authority 

If you begin your new role within 4 weeks of leaving Essex County Council, you will need to repay your redundancy pay.  

However, your continuity of employment will remain unbroken. This means your service at Essex County Council will transfer to your new employer and count towards entitlements such as annual leave, and any enhanced sickness and family leave schemes. 

A full list of the public bodies that continuous service applies to can be found in the Local Authority Modification Order.

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