The Government introduced powers to cap exit payments in the public sector at £95,000 in the Small Business, Enterprise and Employment Act 2015 by way of secondary legislation. HM Treasury has opened a consultation which sets out the proposed draft regulations, schedule to the regulations, accompanying guidance and directions designed to implement the cap. The ‘Public Sector Exit Payment Cap Regulations 2019’ set out the detail of the obligations on individuals and employers. The regulations also provide a list of the public sector authorities currently within the scope of the policy. The guidance is designed to be read alongside the regulations and sets out how relevant public sector employers are expected to implement the legislation.

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