Redundancy payments

Stephen SimpsonEditor's message: Major changes to the rules on redundancies in the public sector are planned. The changes include:

  • a cap on exit payments of £95,000 for public-sector workers;
  • a requirement that employees in the public sector with annual earnings of £80,000 or more repay exit payments where they return to the public sector within one year of leaving; and
  • a cap of 15 months' salary when calculating redundancy payments.

The changes have the potential to make public-sector employers change the way they think about redundancies in senior posts within their organisation.

Stephen Simpson, principal employment law editor

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