Public sector exit payments: Consultation

Published 13 September 2022

The government has launched a public consultation setting out proposals to introduce a new administrative controls process for public sector exit payments.

THE FACTS

The government has set out its proposals to introduce an expanded approvals process for public sector employee exits and special severance payments, with additional reporting requirements.  The government’s intention is to allow for additional scrutiny and assurance of exit decisions to support the government’s wider ambition to reduce the use of large exit payments in the public sector, improving consistency and the accountability of decisions to exit public sector employees. The proposed process would set the expectation that recovery of special severance payments should be considered across central government, where such payments are agreed. 

WHAT DOES THIS MEAN FOR EMPLOYERS?   

Employers have become used to more scrutiny of payments that they make to public sector employees whether in the settlement of claims or on termination of employment. This consultation on further controls in this area is consistent with this current approach.

The consultation will close on 17 October 2022.  Employers who wish to provide input can  find details here.