Issue - meetings

Purpose of Report

To update Executive on the applications and initial approval of those members of staff who had applied under the Mutually Agreed Resignation Scheme (MARS).

Decision

That the content of the report be noted by Executive.

Alternative Options Considered and Rejected

Consideration was also given to the fact that the Exit Pay Regulations and subsequent LGPS changes, could ultimately see a reduction in redundancy payments to staff, although this option had not been implemented by Government.

Reason for Decision

MARS was a scheme in which the employee, in agreement with the employer, choose to leave their employment early, in return for a settlement payment.

The Council’s MARS scheme was available to all employees, and in accordance with the scheme itself, was proactively publicised to staff as an available opportunity, in order to increase the flexibility of the organisation, and to address particular financial circumstances.

On the 9 December 2020 the Council opened up for a limited period, an enhanced version of MARS, to run until the 4 January 2021. This limited, enhanced opportunity saw an increase in the allowance under the existing scheme, from 2 week’s pay for every year of service, to 3 week’s pay for every year of service.

The Scheme was offered in this way, to try and balance any savings that may subsequently be required under the Towards Financial Sustainability (TOFS) programme and to try and avoid any compulsory redundancies that may follow.

It was agreed that 22 members of staff could be released under the MARS scheme, according to criteria outlined at paragraph 3.4 of the report

Losing staff from the organisation would inevitably see a reduction/change in performance in affected areas. Whilst the above criteria had been used to assess impact on service areas, it would not negate the impact. However, it was considered by CMT to be more appropriate to work with the potential changes in standards of performance at this time, rather than to contemplate compulsory redundancies and changes to standards of performance at a later date.

It was noted that the savings made by those applying under the MARS scheme would have a direct impact on compulsory redundancies identified elsewhere in the TOFS programme, so to that extent opening this enhanced window, had a positive effect.