The Government has published its response to the consultation on proposals for recovering exit payments from employees earning over £100,000 per annum who leave the public sector and then return to work for the same organisation or another organisation within the same public organisation sub-sector within 12 months. Key proposals are as follows:
– An individual with a salary of £100,000 or more who is made redundant and receives an exit payment will have to repay some or all of that exit payment to the previous employer when that person is engaged by another public sector body within the same sub-sector.
– The amount of exit payment that must be repaid is determined on a scale with the full amount being recoverable if the person is engaged within 28 days up to a maximum of 12 months after their dismissal, after which none of the exit payment is repayable. The proportion of exit payment that may be retained will relate to that individual’s loss of earnings when they were between employments.
– The amount of the repayment will be reduced if the person returns to a role with lower pensionable pay.
– The legislation will reflect the issue of individuals who return to work for a public sector organisation, off payroll, e.g. as an individual consultant, or as an employee, of a consultancy firm.
– A casual work limit of 15 days in a 90-day period will be permitted, which could be waived if justified by value for money reasons.
The Government intends to implement its proposals in regulations made under the Small Business, Enterprise and Employment Bill, which it intends to bring into force no later than April 2016.
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The aim is to provide summary information and comment on the subject areas covered. In particular, where employment tribunal and appellate court cases are reported, the information does not set out full details of all the facts, the legal arguments presented by the parties and the judgments made in every aspect of the case. Click on the links provided to access full details. If no link is provided contact us for further information. Employment law is subject to constant change either by statute or by interpretation by the courts. While every care has been taken in compiling this information, SM&B cannot be held responsible for any errors or omissions. Specialist legal advice must be taken on any legal issues that may arise before embarking upon any formal course of action.
This provides summary information and comment on the subject areas covered. Where employment tribunal and appellate court cases are reported, the information does not set out all of the facts, the legal arguments presented and the judgments made in every aspect of the case. Employment law is subject to constant change either by statute or by interpretation by the courts. While every care has been taken in compiling this information, we cannot be held responsible for any errors or omissions. Specialist legal advice must be taken on any legal issues that may arise before embarking upon any formal course of action.
