Public sector exit payments – October 2014

Print publication


Plans have been announced as part of the Small Business, Enterprise and Employment Bill 2014-15 to bring in rules requiring the recovery of exit payments from high earners working in the public sector if they return to the same part of the public sector within 12 months of leaving. High earners are defined as those earning more than £80,000 per year. Exit payments for these purposes will include redundancy payments, severance or ex gratia payments, pay in lieu of notice and compensation payable under a contractual term. Depending on how the rules are structured this may influence the way in which settlement and COT3 agreements are negotiated. There has been a public consultation which closed on 17 September 2014.