Proposal for stability, recovery, and fair work

Purpose

The University and DUCU (Dundee University and College Union) share an interest in achieving organisational stability, supporting recovery and rebuilding confidence across the institution. 

The parties recognise that prolonged uncertainty has had an impact not only on colleagues directly affected by organisational change, but also on the University's ability to implement wider organisational development, service improvement and growth initiatives. An important objective of this proposal is therefore to provide sufficient clarity and certainty to enable the institution to move forward with the next phase of recovery, renewal and strategic development. 

This proposal seeks to provide a pathway to conclude the organisational restructure, remove the need for compulsory redundancies wherever possible, and create the conditions for a period of stability and renewal. 

The proposal represents a package of commitments by both parties intended to support colleagues through the final stages of the current organisational change programme and establish a platform for a more constructive future relationship. 

University Commitments and Actions 

Enhanced Voluntary Redundancy Offer (VR2) 

A final enhanced VR2 scheme will be made available for a limited period to academic colleagues currently within the identified at-risk pools. The terms of the VR2 scheme are based on those set out in the academic contract of employment in relation to compulsory redundancy which provides for a 12-month notice period, at the end of which a statutory redundancy payment would be made. 

A key difference of VR2 will be, to ensure broad alignment with the VR terms available to Professional Services staff, that we would not require the full 12-month notice period to be worked. We would instead require 6 months to be worked, followed by 6 months PILON and a statutory redundancy payment. The notice period would take effect in January 2027 with exits by the end of June 2027 at which point the PILON and statutory redundancy payment will be made. 

Academic colleagues outside the at-risk pools may also submit an expression of interest in the scheme. Expressions of interest will initially be reviewed by the relevant Faculty Leadership Team before being referred to the University Executive for final approval. 

Applications from Academic colleagues outside the at-risk pools will only be approved where the University is satisfied that acceptance would: 

• support institutional affordability and sustainability; 
• maintain essential teaching and research capacity; 
• align with workforce planning requirements; and
• contribute to reducing the need for compulsory redundancies. 

The University will communicate decisions on all applications as quickly as reasonably practicable. 

Redundancy Avoidance and Consistency of Treatment 

Following conclusion of the original VR process, a small number of professional services staff are at-risk of compulsory redundancy. We commit to continue to support them and commit to continue to offer the original VR terms. This VR offer will be timebound. Our objective is to remove the requirement for compulsory redundancies through redeployment or voluntary redundancy if possible.

Redeployment and Mitigation 

The University will continue to actively pursue redeployment opportunities and other reasonable mitigation measures throughout the current process. 

We continue to prioritise the redeployment of staff, both academic and professional services, and encourage support through channels available such as PACE, and we will commit to the identification of a budget to help upskill colleagues where required. 

Completion of VR2 

The parties agree to work towards concluding the outcome of VR2 by the end of 2026. 

For the purposes of this proposal, conclusion means that decisions will have been made and communicated in relation to all VR2 applications, including applications from colleagues within the at-risk pools and approved applications from academic colleagues outside those pools, thereby providing certainty regarding the workforce changes required. 

This will also include a comprehensive review of the outcomes achieved, including the extent to which required savings have been realised and the implications for the University's longer-term financial sustainability. Having considered this assessment, the University will determine the appropriate next steps. 

DUCU Commitments 

DUCU will support the University in bringing the outcomes of VR2 to a conclusion, with the shared objective of completing the process by the end of the 2026 calendar year. 

This commitment shall include constructive engagement with: 

• the enhanced VR2 scheme; and 
• measures intended to achieve the necessary workforce reductions through voluntary means. 

Industrial Relations Stability 

The parties recognise that one of the principal objectives of this proposal is to create a period of organisational stability following completion of the organisational restructure. 

The parties acknowledge that colleagues have experienced a prolonged period of uncertainty and change. A central purpose of this proposal is to provide clarity regarding the outcome of the current process and create the conditions for a more stable environment focused on recovery and renewal. 

This proposal is therefore intended to provide a foundation for a period of stability characterised by constructive engagement, and a shared commitment to the future success of the University. 

Moratorium on Future Institution-Wide Workforce Reduction Programmes 

There is a commitment that no strike action will take place for the remainder of 2026. At the end of VR2 an assessment will be made of the impact of VR2 and the financial situation, at this point the University will decide on the required next steps. Upon conclusion of the VR2 outcomes DUCU will retain the right to undertake industrial action in relation to the initiation of compulsory redundancies. 

Upon conclusion of this organisational restructure, the University will implement a moratorium on any further institution-wide voluntary redundancy or compulsory redundancy programmes until August 2028. 

In return, DUCU will not initiate, support, endorse or pursue industrial action, including action short of a strike, relating to institution-wide voluntary redundancy or compulsory redundancy programmes until August 2028. 

During this period, the University's intention will be to provide organisational stability and avoid the introduction of further workforce reduction programmes. 

For the avoidance of doubt, this moratorium shall not apply to: 

• the natural expiry of fixed-term contracts; 
• redeployment arrangements; 
• routine workforce management processes; or localised organisational changes required to address specific operational, academic or service needs. 

Taken together, these reciprocal commitments are intended to create a meaningful period of stability during which the University can focus on recovery, renewal and delivery of its strategic priorities without the disruption associated with further institution-wide workforce reduction programmes or industrial disputes. 

Judicial Review 

Subject to agreement of this proposal, DUCU will withdraw the proposed judicial review proceedings relating to previous Court decisions and associated governance matters. 

In recognition of concerns raised through several engagement exercises regarding transparency, engagement, trust and institutional confidence, the Principal commits to initiate and lead on a workplace project facilitated by ACAS (or a mutually agreed external facilitator). This is a collaborative in-house project, facilitated by ACAS advisors (or a mutually agreed external facilitator) and co-designed by relevant internal stakeholders e.g. staff, students, trade unions and members of Court. 

The purpose of this will not be to overturn previous decisions but to reflect and learn from the past then to act on practical improvements that strengthen trust, transparency, accountability, engagement and institutional confidence, helping shape the next phase of the University's renewal. 

The development of this programme will provide a constructive alternative to continued dispute regarding past governance matters. 

Fair Work Framework 

The University and DUCU will work together, along with the university's other two recognised trade unions to review and refresh the embedding of the Fair Work Framework over the course of the first six months of 2027. This will include a review of DUCU facility time. 

This work will seek to strengthen engagement and collaborative working, employee voice, transparency and productive industrial relations. 

Indicative Implementation Timeline 

This proposal is made on a without prejudice basis and is subject to approval by University Court. Should the proposal receive Court approval on 10th November, directly after, it will then be referred to DUCU's democratic ballot processes for consideration by its members. For draft planning purposes, the timetable below assumes that DUCU will undertake a ballot 

of its members which will conclude by 18 November. DUCU will advise members that this is the full and final offer for VR2 terms. 

Questions and answers

1. Why has this proposal been developed? 

Most of the workforce reductions required under the University's recovery plan have already been achieved. This proposal is intended to address the remaining reductions through voluntary measures rather than compulsory redundancy where possible. It also seeks to create a period of organisational stability and constructive industrial relations following a prolonged period of uncertainty.  

2. Does this proposal mean compulsory redundancies have been ruled out? 

The shared objective of the proposal is to avoid compulsory redundancies. However, whether compulsory redundancies can be avoided entirely will depend on whether sufficient workforce reductions are achieved through the enhanced voluntary redundancy arrangements.   

3. What is VR2? 

VR2 is a final enhanced voluntary redundancy scheme proposed for academic colleagues who are at-risk of redundancy. The scheme is intended to provide a further opportunity to achieve the remaining workforce reductions through voluntary means.  

4. Who can apply for VR2? 

Academic colleagues within the identified at-risk pools will be eligible to apply.  

Academic colleagues outside the at-risk pools may also submit an expression of interest which will be considered against agreed institutional criteria  

5. What is the timeline for submitting my application/expression of interest in VR2? 

The scheme will launch no later than 19 November 2026, it may launch earlier if the DUCU ballot concludes in advance of the 18 November 2026.  The application window will run until 25 November 2026. 

6. Is there a consideration or cooling-off period in the VR2 scheme? 

Yes, as with the original VR scheme there is a 10-day consideration period. 

7. Will all VR2 applications be approved? 

Not necessarily. Applications will be considered against institutional requirements. Approval is not automatic and the University will need to ensure that accepting applications remains affordable and operationally viable i.e. does not adversely affect teaching, research or essential services.   

8. I am an Academic approved to leave the University as a result of the first VR scheme, can I opt to leave through VR2 instead?   

Yes, you can opt to change to the VR2 terms. If you wish to do this, please contact your Faculty Leadership team. 

9. How does VR2 differ from compulsory redundancy terms for academics? 

The proposal provides for terms based on the contractual entitlement associated with academic compulsory redundancy arrangements, which include a 12-month notice period and statutory redundancy pay. 

However, under VR2, the intention is that colleagues would work six months of notice and receive the remaining six months as a payment in lieu of notice (PILON), thereby allowing an earlier departure while maintaining broad parity with previous voluntary redundancy arrangements.  

10. How do I calculate my estimated VR2 package? 

 Your VR2 package will consist of two elements: 

1. Six months' pay in lieu of notice (PILON), paid when your employment ends at the end of June 2027. 
2. A statutory redundancy payment, calculated in accordance with UK statutory redundancy rules also paid at the end of your employment. 

Step 1: Calculate your PILON payment 

To estimate your PILON entitlement, take your annual salary and divide it by two. 

Example: 

• Annual salary: £50,000 
• 6 months' PILON: £25,000 

Important: PILON is treated as earnings and is therefore subject to Income Tax and National Insurance deductions through payroll in the same way as salary. The actual amount you receive after deductions will depend on your individual tax circumstances at the time of payment. 

The University Payroll Team will process payments in accordance with HMRC requirements but cannot provide individual tax advice or confirm in advance what your personal tax and National Insurance deductions will be. 

Step 2: Calculate your statutory redundancy payment 

Use the UK Government's statutory redundancy calculator to estimate your statutory redundancy entitlement: 

https://www.gov.uk/calculate-your-redundancy-pay  

You will need: 

• Your age 
• Your length of continuous service 
• Your weekly pay (subject to the statutory weekly pay cap applicable at the time) 

The calculator will estimate your statutory redundancy payment based on the statutory formula. 

Step 3: Add the two figures together 

Your estimated VR2 package will be: 

6 months' PILON + Statutory Redundancy Payment 

Example: 

Important points to note 

• Colleagues accepted into VR2 will normally work until 30 June 2027, representing six months of the contractual 12-month notice period. 
• The remaining six months of notice will be paid as PILON when employment ends. 
• PILON is subject to Income Tax and National Insurance deductions. 
• The statutory redundancy payment is calculated using the statutory redundancy formula and may be subject to statutory limits in force at the time. 
• The Government calculator provides an estimate only. Final calculations will be confirmed by the University before any agreement is completed. 
• The University Payroll Team cannot provide individual tax planning advice or estimate the exact net amount that an individual will receive after tax and National Insurance deductions have been applied. 
• Individual circumstances, including salary changes, length of service, pension arrangements and personal tax position, may affect the final amount payable. 

11. Can I access my pension if I opt to take voluntary redundancy? 

Staff nearing retirement age may wish to access their pension benefits. Generally, members must be over the age of 55 to do so. Your pension will be reduced (if you are under the Scheme’s Normal Pension Age) to take account of the fact that it is being paid early, and therefore for longer. 

The University operates various pension schemes. Several of our Pension schemes offer an online calculator or online planning tool. 

Following a query or application, the Pensions Office will request quotes from the relevant pension provider. The response time from the pension provider will depend on the scheme. For information on the rules of each scheme, the options available and how to obtain a quote, please refer to our Summary Table of Pension Scheme Details.docx. 

If you have any further queries, you can contact the Pensions Team at [email protected]  

12. What happens if sufficient volunteers come forward? 

If the required workforce reductions and financial objectives are achieved through voluntary means, the University intends to conclude the current organisational restructure and implement the organisational stability commitments contained within the proposal, including the proposed moratorium on future institution-wide workforce reduction programmes until August 2028. 

13. What happens if insufficient volunteers come forward? 

Following completion of VR2, the University will undertake a comprehensive assessment of the outcomes achieved, including the level of savings realised, workforce changes delivered and the University's wider financial position. 

Having considered this assessment, the University will determine the appropriate next steps which could be compulsory redundancies.  

14. What support will continue to be available for staff at-risk of redundancy? 

The University has committed to continue pursuing redeployment opportunities and other reasonable mitigation measures. Redeployment will remain a priority any colleagues at risk of redundancy. 

Support through services such as PACE (Partnership Action for Continuing Employment) will continue, and a skills development budget will be identified to support colleagues who secure redeployment opportunities.  

15. When will decisions be made? 

The intention is that all applications will be considered and outcomes communicated before the end of 2026, with confirmation of outcomes expected during December.  

 16. What is the proposed moratorium on workforce reduction programmes? 

The University proposes a moratorium on further institution-wide voluntary redundancy and compulsory redundancy programmes until August 2028. 

The intention is to provide a meaningful period of organisational stability and allow the University to focus on recovery, renewal and delivery of its strategic priorities. 

The proposal makes clear that the moratorium would not apply to: 

• the expiry of fixed-term contracts; 
• redeployment arrangements; 
• routine workforce management processes; or 
• localised organisational changes required to meet operational, academic or service needs.  
• Expiry of external funding for non-core roles 

17. What is the ACAS-facilitated (Advisory, Conciliation and Arbitration Service) workplace project? 

As part of the proposal, the Principal has committed to establishing an ACAS-facilitated workplace project involving staff, students, recognised trade unions and members of Court. 

The purpose of the project is to reflect on lessons learned from recent organisational change and identify practical improvements that strengthen transparency, engagement, accountability, trust and confidence across the University. 

The project is intended to support the next phase of the University's renewal and recovery. 

18. What is the Fair Work Framework review? 

The University and recognised trade unions will review and refresh how we embrace and implement the Fair Work Framework into our policies and practices, and we will do this within the first during the first six months of 2027.  

19. If I have ILR (Indefinite Leave to Remain), will accepting VR2 affect my immigration status? 

In most cases, no. ILR is not linked to a specific employer or being in employment. Accepting voluntary redundancy does not normally affect a person's right to live and work in the UK. Staff with individual immigration questions should seek independent advice where required and you can also access guidance on the Gov.uk website.

20. Why is the University seeking commitments on industrial action and judicial review?  

The proposal is intended as a balanced package of reciprocal commitments. The University is offering enhanced voluntary redundancy arrangements, a moratorium on future institution-wide workforce reduction programmes and a range of commitments aimed at organisational stability.  

Subject to agreement of the proposal DUCU would refrain from any form of industrial action related to organisational change to the period up to August 2028; withdraw the proposed legal proceedings relating to previous Court decisions and associated governance matters.  

21. Where can I obtain further information or support? 

Colleagues are encouraged to: 

• access the Change site for further information 
• speak with their line manager; 
• seek support from their trade union representative; 
• contact the Pensions team or go directly to pension provider for pension specific questions or information 
• access redeployment and career transition support services Change; and 
• access wellbeing support where required.