12/02/2021
The Restriction of Public Sector Exit Payments Regulations 2020 SI 2020/1122, which came into force on 4 November 2020 and set a £95,000 cap on exit payments for public sector employers, had been much criticised and have been the subject of judicial review challenges which were due to be heard in March this year. However, the Government has now decided that the Regulations should be revoked. An HM Treasury Direction has been published that will disapply the cap until the Regulations have been revoked. The Government has also published guidance stating that any employee who was affected by the cap while it was in force should request the amount he or she would have received had the cap not been in place by contacting his or her former employer directly. The Government is encouraging employers to pay these additional sums.
