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Legal Updates

Cap on public sector exit payments at £95,000 to go ahead - but not for unfair dismissal

06 November 2015 #Employment

The response this week to the public sector exit payments consultation indicates that powers to introduce the cap will be included in the Enterprise Bill, with the details to be dealt with in subsequent regulations.

The cap will initially be set at £95,000 and will apply to the vast majority of exit payments, including payments for voluntary or compulsory redundancy, payments in lieu of notice, early unreduced access to pensions and ‘special severance’ payments such as those agreed in settlement of threatened litigation.

A waiver system will be established to allow higher payments in exceptional circumstances. The cap will not apply to payments made in respect of an employee’s death, serious injury attributable to employment, or ill-health retirement, nor to payments made following litigation for breach of contract or unfair dismissal.

Clarkslegal, specialist Employment lawyers in London, Reading and throughout the Thames Valley.
For further information about this or any other Employment matter please contact Clarkslegal's employment team by email at by telephone 020 7539 8000 (London office), 0118 958 5321 (Reading office) or by completing the form on this page.
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