Public Sector Exit Payments – An Update

You may have read our update in May last year in relation to public sector exit payments, in which we promised to issue a further update when Regulations were proposed by the Scottish Government.

Whilst the UK Government has set out its proposals, exit payment caps, recovery and reform of payment terms are devolved matters. Although we still await these Regulations, we are a step closer, because the Scottish Government has now published a consultation on public sector severance arrangements, which will remain open until the 23^rd of June 2017.

Statistics published by the Scottish Government in the consultation show that the majority of public sector exit payments fall within the £10,000 to £50,000 bracket, but that in 2015-2016 17 out of 560 exits cost employers more than £100,000.