Exit payment cap dropped ahead of union-backed legal challenges

The government has revoked the controversial Restriction of Public Sector Exit Payments Regulations 2020 which capped redundancy payments across the public sector at £95,000 from 4 November. While facing fresh legal challenges from the PCS and other unions, it concluded that the cap “may have had unintended consequences”. Employers are now being encouraged to pay to any former employees to whom the cap was applied the additional sums that would have been paid but for the cap.