Redundancies in local government

For local government employees, there is a separate statutory scheme, set out in the Local Government (Early Termination of Employment) (Discretionary Compensation) (England and Wales) Regulations 2006 (which replaced the 2000 Regulations). It allows for a maximum of 104 weeks’ pay, based on actual earnings rather than the £450 maximum.

As an alternative to redundancy compensation, local government employers are allowed to enhance pensions, by adding up to a maximum of 10 additional years to the service of employees aged over 55, or alternatively to enhance pensions by up to £5,000 per annum (Local Government Pension Scheme (Benefits, Membership and Contributions) Regulations 2007).