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Council workers in Perth and Kinross could lose thousands in redundancy pay-out changes

Perth and Kinross Council headquarters on High Street, Perth.
Perth and Kinross Council headquarters on High Street, Perth. Image: Dougie Nicolson/DC Thomson

A new redundancy policy at Perth and Kinross Council could see staff lose tens of thousands of pounds from their final pay packet.

The council has changed rates for employees taking voluntary redundancy, who cannot access their local government pension, by halving the pay per year of service while adding a £6,000 payment on top.

Local authority bosses said the old rates are now “unaffordable”.

Someone earning the Scottish average salary – £26,500  – could lose £9,000 if they have worked for the council for 20 years and cannot access their local government pension.

A higher earner, on a £60,000 salary, could lose up to £28,615.

What is the new redundancy policy?

The new policy, agreed by the finance committee, will see voluntary redundancy rates, which vary depending on age, halved.

People who are not able to access their local government pension will also be given a £6,000 payment.

Table shows the new policy. Image: Clarke Cooper/DC Thomson

The maximum payment has also reduced from 60 weeks’ pay, to 30 weeks’ pay.

The council will also reduce the time it spends finding an alternative role for employees within the authority.

Currently, the council spends a minimum of eight weeks and a maximum of 26 weeks trying to find an alternative role for someone who will otherwise be at risk of redundancy.

However, this will be changed to a minimum of eight weeks and a maximum of 12 weeks.

Some younger employees earning less than the Scottish average, with a short length of service, may be paid more under the new policy, due to the £6,000 flat rate.

‘Authorities can no longer do business the same way’

SNP council leader, Grant Laing said: “The current financial climate means local authorities can no longer afford to do business in the same way and this includes how we manage our workforce.

“We will always look to avoid redundancies wherever possible but are revising the terms we offer to staff who take voluntary redundancy.

“Employees who take voluntary redundancy will receive a payment based on their weekly pay rather than the statutory minimum.”

Councillor Grant Laing. Image: Steve MacDougall/DC Thomson

He added: “Volunteers for redundancy who cannot access their pensions will also qualify for a £6,000 payment.

“Our staff will always be our greatest asset and we will continue to support them throughout our transformation and change programme.”

A report for the committee said trade unions could not agree to the changes, however none were available for comment.

The report said: “They (unions) indicated they could not agree to proposals or changes  that detrimentally impact on their members.”

Labour councillor Alasdair Bailey tried to block the changes, but had to withdraw his amendment as it did not receive backing from other councillors.

Councillor Alasdair Bailey.
Councillor Alasdair Bailey. Image: Kris Miller/DC Thomson

He said: “We heard just now that trade unions don’t agree and it’s written in this paper.

“I move simply an amendment that we do not take the recommendations and we remain with the status quo.

“It would be a sad day if no one were to stand up for workers’ rights alongside me.”

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