Derbyshire: what their redundancy policy pays

Derbyshire's own policy

Published as Derbyshire County Council Employer Discretions Document V1.1.

Derbyshire's policy confirms it pays statutory redundancy pay only, with no locally discretionary enhancement on top.

"The total of these amounts is equivalent to a redundancy payment calculated on the employee's weekly rate of pay for normal working hours. The maximum payment is 30 weeks' pay and the amount will depend on age, period of continuous service and pay. The Council will not make discretionary compensation payments under the VR Scheme."

Like every local authority, Derbyshire sets this policy under its own discretion (regulation 6 of the 2006 Regulations, below) and can amend it. Read the document itself rather than relying on this summary alone: Derbyshire County Council Employer Discretions Document V1.1, retrieved 2026-08-19.

How this compares with the statutory minimum

Every employee with at least two years' service is entitled to statutory redundancy pay regardless of what their employer's own policy says. As at 6 April 2026, that is calculated using a week's pay capped at £751, up to a maximum of £22,530 for 20 years' service at age 41 or over.

Derbyshire's published policy states that it pays the statutory calculation only, so on the wording above there is no additional discretionary payment on top of the statutory figures.

LGPS and early pension access

Under regulation 30(7) of the Local Government Pension Scheme Regulations 2013, an LGPS member aged 55 or over who is dismissed for redundancy or business efficiency is entitled to immediate payment of their pension, rather than waiting until normal pension age. This is separate from, and on top of, any redundancy payment above.

Derbyshire's own policy adds: The Council will not make discretionary compensation payments above the statutory formula under the Voluntary Redundancy scheme (only the actual-pay vs statutory-cap difference is paid). For employees aged 55-59 who are Category Two (do not meet the Rule of 85 until age 60), pension benefits are actuarially reduced to reflect early payment; for Category Three (meet the Rule of 85 before age 60), the Council meets the pension fund shortfall from the early payment. VR is not currently available to LGPS members aged 55 to 59 (restricted by Cabinet decision).

Source: LGPS Regulations 2013 (SI 2013/2356), regulation 30(7). Read the regulations. This does not compute a pension figure; it states the rule only, and does not replace advice from your pension fund.

Settlement agreements at Derbyshire

Where a council wants to agree enhanced terms, confirm the LGPS position, or resolve a related dispute alongside a redundancy, it is often documented in a settlement agreement rather than a plain redundancy letter. A settlement agreement is only legally binding once you have received advice on its terms from a relevant independent adviser such as a solicitor, and your employer is usually required to contribute to the cost of that advice.

Before you sign anything, work out what Derbyshire's own policy and the statutory minimum add up to on their own, so you can see what a settlement offer is actually adding.