This topic sets out legislation and guidance affecting local authorities that are terminating employment on grounds of redundancy or other grounds. It covers both the legal constraints which affect them, and their discretionary powers to offer compensation to employees which exceeds statutory requirements.
Local government employers must follow the requirements of the Redundancy Payments (Continuity of Employment in Local Government, etc) (Modification) Order 1999 regarding continuous service in calculating redundancy payment entitlements. Calculating Entitlements to Statutory Redundancy Pay
Local government employers have the power to enhance redundancy and payments to employees who retire early for other reasons (eg in the interests of efficiency), but must follow the provisions of the Local Government (Early Termination of Employment) (Discretionary Compensation) (England and Wales) Regulations 2006, and may need to obtain council approval for some payments. Enhanced Redundancy Payments — Local Authorities
The Local Government Pension Scheme (LGPS) may offer an alternative means to compensating local government employees who are members and are made redundant, or whose employment is terminated in the interest of the service. Discretions to Make Enhanced Payments to Local Government Employees Who Are Retiring Early
The LGPS also includes flexible retirement (draw-down) provisions for employees approaching retirement. Enhanced Redundancy and Early Retirement Payments for Local Government Employees
The Government has issued guidance on the use of settlement agreements by local authorities on termination of employment, which local government employers should follow. The Use of Settlement Agreements by Local Authorities on Termination of Employment