Schools and Teachers redundancy: your rights, pay and settlement agreements

Redundancy in schools affects teachers, support staff and school leaders across maintained schools, academies and multi-academy trusts, and the process differs depending on who employs you. Maintained schools sit under the local authority, which sets a discretionary compensation policy on top of statutory redundancy pay (see our local government redundancy page for how councils set that policy), while academies and multi-academy trusts are their own employer and set their own policy instead. The Burgundy Book, the National Agreement on teachers' pay and conditions, governs notice periods around school term dates rather than the amount of redundancy pay itself. Falling pupil numbers and funding pressures are common drivers of redundancy in the sector, and settlement agreements are used both to formalise an agreed exit and to resolve disputes such as capability or conduct concerns.

Redundancy pay in schools and teaching

Maintained-school teachers and support staff are entitled to statutory redundancy pay on the same terms as any employee with two years' service. Any enhancement above the statutory figure comes from the local authority's discretionary compensation policy for maintained schools, or from the academy trust's own policy where the school is an academy, rather than from a single national teachers' scheme. The Burgundy Book governs notice periods tied to school term dates, so a teacher's notice can run to the end of a term rather than a fixed number of weeks, but it does not set redundancy pay. Whether the local authority or the academy trust is your employer for redundancy purposes depends on whether your school is maintained or an academy, and that affects which policy and process applies.

Key points

• Whether the local authority or the academy trust is your employer affects which redundancy policy and process applies.
• The Burgundy Book governs teachers' notice periods around school term dates, not the amount of redundancy pay.
• Any enhancement above statutory redundancy pay comes from the local authority's or academy trust's own discretionary policy, not a single national scheme.
• Teachers' Pension Scheme early retirement from 55 depends on scheme rules and employer agreement, not automatic entitlement.

Settlement agreements in schools and teaching

Settlement agreements are used in schools and colleges both to agree redundancy exits, sometimes timed around the school calendar or Burgundy Book notice dates, and to resolve disputes such as capability or conduct concerns without a formal process. Reference wording is particularly sensitive for teachers, since a future post can depend on it. Whether your employer is the local authority, an academy trust or a governing body, independent legal advice is required before the agreement is binding, and the school or trust usually covers the cost.

Schools and Teachers redundancy: frequently asked questions

Situations that often arise in schools and teaching

• Pregnant or on maternity leave
• Over 50: pension interactions