New draft legislation announced by the Government includes: proposals to make all pay in lieu of notice payments taxable; a requirement that employers pay national insurance on non-contractual termination payments above the exemption; and clarification on injury to feelings awards.
The Government has cut back proposed changes to taxing termination payments, issuing new draft legislation that is expected to come into force in April 2018.
Updated to include information on a new Government consultation on reforms to public-sector exit payments.
Highly paid public-sector executives who receive redundancy payments only to return within a year will need to repay the taxpayer, the Treasury has announced.
The Government consults on its proposal to introduce legislation that will require the recovery of exit payments from high-paid employees who re-enter the public service within one year.
Definition from the XpertHR glossary.
In Woodcock v Cumbria Primary Care Trust  IRLR 491 CA, the Court of Appeal held that the employer was justified in issuing a redundancy dismissal notice to an employee prior to formal consultation so as to avoid his remaining in its employment until his 50th birthday.
In HM Land Registry v Benson and others  IRLR 373 EAT, the EAT held that the “cheapness criterion” applied by the employer during an early retirement selection process was justified, although indirectly discriminatory on the grounds of age.
HR and legal information and guidance relating to severance payments.