The Restriction of Public Sector Exit Payments Regulations 2020 SI 2020/1122, which came into force on 4 November 2020 had set a £95,000 cap on exit payments for public sector authorities and offices listed in the Schedule to the Regulations.
In an quick turn of events, after an “extensive review” of the application of the cap, the UK Government has concluded that the cap may have had unintended consequences and the regulations ought to be revoked.
What about employees who had already been affected by the cap while it was in force?
Any employee who was affected by the cap while it was in force should contact his/her former employer and request the amount he or she would have received had the cap not been in place. Employers are encouraged to pay to any the additional sums that would have been paid out to the employee had the cap not existed.
Call a specialist employment lawyer
Magara Law is an employment law firm with offices in Bicester, Banbury, Reading, and Paddington, London, and serves clients nationwide.
For more information or to contact our employment law team at Magara Law, call 01869 325 883 or email roy@magaralaw.co.uk.