On 4 November 2020, the Restriction of Public Exit Payments Regulations 2020 (“the Regulations”) came into force; exit payments for the public sector were capped at £95,000. This cap was due to affect all of the public sector and affects both employees and office holders. However, on 12 February 2021, the Government issued a Treasury Direction disapplying the cap due to “unintended consequences” and will revoke the Regulations. That does not seem to be the end of the story as the Government has said that it plans to bring forward proposals quickly to address “unjustified exit payments”.
Please see the full ebriefing we have put together to cover this important update here.
the government issued a Treasury Direction disapplying the cap due to “unintended consequences” and will revoke the regulations.