EXIT PAYMENTS CAP – EARLIEST DATE ANNOUNCED
A government minister has announced the earliest date that the cap of £95,000 on exit payments for most public sector employees will come into effect. Anna Soubry MP (Minister of State in the Department for Business Innovation and Skills) said [private] in the House of Commons on 23 February 2016 that “…the regulations giving effect to the cap will not be in force until 1 October 2016 at the earliest, giving employers and employees time to prepare.” She went on to say that “The power to relax the cap [which is to be available to Full Council meetings] can address any unforeseen unfairness or hardships that arise, which will include cases where the exit is agreed and scheduled to take place before the regulations come into force, but, for a reason beyond the control of the employee, the exit occurs after they have come into force.” [/private]