Labour Research November 2016

Law Matters

Termination packages

The government has confirmed that termination packages available to public sector workers will be reduced by way of a new structure for calculations, including a salary cap and limits on early pension access. Garry Graham, deputy general secretary of the Prospect managers’ and specialists’ union, said the proposals are likely to “hit some of the lowest-paid and longest serving public servants hardest”. 

The government requires compliance within nine months and the changes will apply to most public sector workforces. 

Scotland, Wales and Northern Ireland will decide separately whether to apply the changes to devolved bodies. The proposal for an overall cap on public sector exit payments and clawback is pending (see page 5).