Higher Education redundancy: your rights, pay and settlement agreements

Restructuring announcements across universities and further education colleges are compiled publicly by UCU-affiliated trackers (one example: the QMUCU "UK HE shrinking" tracker, qmucu.org/qmul-transformation/uk-he-shrinking/, retrieved 2026-08-19), and Voluntary Severance Schemes are commonly used ahead of compulsory redundancy, though scheme terms vary considerably between institutions and are typically found on staff intranets rather than published externally. Employment terms also differ between pre-92 (chartered) universities and post-92 institutions and colleges, mostly former polytechnics, which affects how academic-staff redundancy is handled. Settlement agreements are used both to formalise a Voluntary Severance Scheme exit and to resolve disputes, such as capability or restructuring grievances, without a tribunal claim.

Redundancy pay in higher education

There is no single higher education redundancy scheme. Pre-92 (chartered) universities often have Statutes or Ordinances setting out additional procedural steps for academic-staff redundancy, a legacy of protections that predate the abolition of academic tenure for new appointments under the Education Reform Act 1988. Post-92 universities and further education colleges generally treat academic staff as ordinary employees under their contract and staff handbook, without Statute-based procedures. Voluntary Severance Schemes are widely used across the sector ahead of compulsory redundancy, but published terms (multiplier, cap, window) are the exception rather than the rule, so check your own institution's current policy rather than assuming sector-wide terms. Where a post ends because its funding or fixed term expires without renewal, this can itself be a redundancy dismissal under section 136(1)(b) of the Employment Rights Act 1996, and the Fixed-term Employees (Prevention of Less Favourable Treatment) Regulations 2002 protect against being treated worse than an equivalent permanent colleague.

Key points

• Pre-92 and post-92 institutions can differ on academic-staff redundancy procedure, so check your own institution's Statutes or contract rather than assuming a sector-wide rule.
• A fixed-term or grant-funded post ending without renewal can itself be a redundancy dismissal, with further protection under the Fixed-term Employees Regulations 2002.
• USS and TPS have different early-retirement rules, so check your own scheme rather than assuming redundancy automatically unlocks your pension.
• UCU and Unison are active across the sector's restructuring and Voluntary Severance Scheme negotiations.

Settlement agreements in higher education

Settlement agreements in higher education are used both to formalise an exit under a Voluntary Severance Scheme and to resolve disputes, such as a capability or conduct concern or a grievance arising during a restructuring exercise, without a tribunal claim. Reference wording matters particularly for academic and research staff, whose next post can depend on it. UCU (University and College Union) represents academic and academic-related staff, and Unison represents many support staff, and both are active in restructuring and severance negotiations across the sector. As with any settlement agreement, independent legal advice is required before it is binding, and the institution usually covers the cost.

Higher Education redundancy: frequently asked questions