HM Treasury has published guidance on the criteria which public sector employers should consider before proposing the use of a special severance payment. These are payments to terminated employees that do not correspond to any contractual or statutory right, including payments reached under a settlement agreement, the outstanding value of unclaimed employee benefits, write-offs of unpaid loans, hardship payments, compensation in lieu of notice, and pension strain payments. The guidance outlines the steps to be taken before authorisation of a special severance payment and introduces new transparency requirements for their annual reporting.
Source: Public Sector Exit Payments Guidance on Special Severance Payments
Issue Date: 27 May 2021
Issuing Department: HM Treasury
Jurisdictions: England; Northern Ireland; Scotland; Wales
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