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Redundancy and Retirement in the NHS

An employee may be dismissed as redundant when a business closes down, or if the need for employees to carry out work of a particular kind has ceased or diminished or is expected to cease or diminish. When redundancies occur, the employer has a number of statutory duties towards employees, including the duty to consult them and to pay redundancy pay to those who are eligible. This topic covers the regulatory framework relating to redundancy and retirement for NHS employees.

Redundancy and Retirement in the NHS: Quick Facts
  • NHS employers are required to adhere to the same statutory and regulatory framework as other employers in other sectors.

  • Redundancy pay rates in the NHS exceed the statutory minimum. Redundancy Pay in the NHS

  • Redundant employees who have reached the minimum pension age and are members of the NHS pension scheme can take their pension early if they wish to

  • The NHS operates a Mutually Agreed Resignation Scheme (MARS) which is a type of voluntary severance scheme. Mutually Agreed Resignation Schemes (MARS)

  • NHS staff who are members of the NHS pension scheme have a number of flexible retirement options. Flexible Retirement Options in the NHS