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Government proposes £95,000 cap on public sector exit payments

07 August 2015 #Employment


Clarkslegal, specialist Employment lawyers in London, Reading and throughout the Thames Valley.

The government has issued a consultation document on proposals to introduce a cap of £95,000 on the total value of exit payments made to public sector employees. Any waiver of the cap would require consent from the relevant Minister, or from the full council in the case of local government exit payments. The consultation closes on 27 August 2015.

The proposals would cover:

  • Current and future employees and office holders of all central and local government departments and non-financial public corporations (with a small number of exemptions), as well as Ministers and Special Advisers.
  • All types of payments made in relation to leaving employment, including voluntary and compulsory exits..
  • All bodies where employment and remuneration practices are the responsibility of the UK government. It will be for the devolved legislatures in Scotland, Wales and Northern Ireland to determine if and how they should make similar arrangements for devolved bodies and workforces.

The Treasury already has power under the Small Business, Enterprise and Employment Act 2015 to make regulations requiring the repayment of some or all of any "qualifying exit payment" in certain circumstances.

For further information about this or any other Employment matter please contact Clarkslegal's employment team by email at employmentunit@clarkslegal.com by telephone 020 7539 8000 (London office), 0118 958 5321 (Reading office) or by completing the form on this page.

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