What is the position for employees whose employment is likely to terminate in the near future (for example employees on fixed term contracts or who are approaching retirement)?
As mentioned above, there is no restriction on who may apply for VS (and this applies to fixed term contract employees and employees approaching retirement). The aim of the VS Scheme is to introduce payroll savings and as a general rule, applications will be unsuccessful if it is not possible to achieve this aim. Applications will generally be turned down where there is a need to replace an applicant (as there will be no payroll saving) or where the payment under the VS Scheme exceeds the future salary costs of an applicant (again there will be no payroll saving). However, in all other respects there will be no differentiation between groups of employees and we intend to adopt the same approach as in 2007, where a number of employees on fixed term contracts did successfully apply for VS based on strategic, operational and financial considerations. In the meantime, members of staff will be treated in accordance with the terms of their contracts. Accordingly, if their fixed term contract
