Severance

Page updated: 11/08/2026

We are committed to working with you and your recognised Trade Unions to reduce the impact of budget reductions on our services and workforce.  However, over the coming years Local Government faces a difficult economic future which could result in significant budget reduction.  This will inevitably affect the way we provide services and our employees who provide those services.  The Severance Scheme provides financial support to you if you leave your employment early due to efficiency.

The Severance Scheme applies to all our employees who have a minimum of 2 years qualifying service except those employed locally by schools. 

Exclusions: If you are subject to disciplinary or capability (health or performance) triggers or procedures you are excluded from the Severance Scheme, until it can be shown that proper process has been followed. Your manager is advised to speak to a HR Advisor before supporting your application for release under the Severance Scheme.

The Scheme

The Severance Scheme follows the principles of the Discretionary Compensatory Regulations. The Council’s Discretionary Compensation Policy are subject to change and do not provide any contractual rights.

Download the severance payment table (.pdf) for information on how a severance payment is calculated, this will be paid through the first available payroll after your leaving date.

If you are a member of the Local Government Pension Scheme we will consider the release of your pension benefits if you are aged 55 or over 

Voluntary severance mutually ends your employment contract with us on an agreed date.

This is a discretionary scheme which means the decision made by us is final and therefore there is no appeals process.

Eligibility criteria

  • If you are interested in applying for voluntary severance, please complete the Expression of Interest form (.doc) and discuss with your manager;
  • Please do not contact the Pensions Team to request an estimate of your pension benefits as this will only be provided once your Head of Service has agreed provisional support for your application;
  • However, some useful guidance and information can be found on the Dyfed Pension Scheme Website including an online pension calculator.
  • Your Head of Service will consider your application for severance alongside other applications received in your Department to see if it can be supported. This will include thinking about the service delivery and financial implications;
  • Once this exercise has been completed you will be contacted either to confirm that your application cannot be supported or to explore your application in more detail and explain the implications;
  • You will not be committed to severance until you are asked to sign an acceptance form and settlement agreement (if appropriate) to confirm that your employment will end. Once you have signed this we are not obliged to reconsider if you change your mind;
  • Acceptance means you leave our employment on the grounds of Voluntary Severance with a mutually agreed leaving date, with no notice period applying on either side and with no payment in lieu for any outstanding holidays, time off in lieu or flexi leave;
  • If you voluntarily leave our employment through this Scheme you cannot work for us in any capacity, including on a casual basis, for at least one year. (Please read the scheme for details of the exceptional circumstances where this may be considered)

Ensuring Equality Of Treatment

This Scheme must be applied consistently to all employees irrespective of race, colour, ethnic or national origins (including citizenship), language, disability, religion, belief or non belief, age, sex, gender reassignment, sexual orientation, parental or marital/civil partnership status, pregnancy or maternity. 

If you have any equality and diversity concerns in relation to the application of this policy and procedure, please contact a member of the HR Team who will, if necessary, ensure the policy/procedure is reviewed accordingly.

Full details here

Please download the Severance Scheme 2020 for further details including its scope and general principles.

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