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.
Additional information on the law on final payments for NHS employers, including how to deal with termination agreements and severance payments. To be read in conjunction with the general information on the law on final payments.
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.
Calculating severance payments by reference to final pay, so that a part-timer who had previously worked full time did not have her full-time service reflected in her severance payment, was not proven to have a disproportionately adverse effect on women as compared with men but, if there was indirect discrimination, it was objectively justified, holds the Court of Appeal in Barry v Midland Bank plc.
In Kowalska v Freie und Hansestadt Hamburg (27 June 1990) EOR34B, the European Court of Justice holds that the exclusion of part-time workers from the right to severance payments under the collective agreement for the West German public services contravenes Article 119 of the EEC Treaty unless the employer shows that the provision is justified by objective factors.
HR and legal information and guidance relating to severance payments.