Consultation On A Public Sector Exit Payment Cap

The Regulations will introduce a £95,000 cap on exit payments and will affect all public sector employees.

Last year, we reported on the initial consultation. The response to that consultation from the Government is brief but confirms the following:

• Implementation of the cap will apply across the whole public sector at the same time as opposed to being introduced in stages.
• Payments for injury to feelings can be exempted from the cap.
• The mandatory waiver for discrimination and whistleblowing claims will be extended to also include health and safety detriments and unfair dismissal claims.
• The only part of any payment in lieu of notice that will be capped is the amount that exceeds a quarter of the individual's salary.