Employment relations

The Employment Relations Unit (ERU) provides comprehensive advice on all aspects of employment relations and practices. Our employment law and policy advisers keep authorities up-to-date on the human resources implications of new legislation and case law developments.

Exit payments cap

Exit payment reform webinar slides (£95k cap and MHCLG reforms), 23 September 2020

In 2015 the government first announced plans to introduce a cap on exit payments in the public sector. The cap includes any pension strain cost. The cap, set at £95,000 was legislated for in the Enterprise Act 2016, which amends the Small Business, Enterprise and Employment Act 2015, but required secondary legislation to be introduced.

On 21 July 2020, HM Treasury published the government’s response to the consultation and laid the implementing regulations in Parliament.  As this is an affirmative process, these regulations will need to be debated in Parliament before they come into force.  We will consider the text of the regulations and any government guidance that is produced and update this page in due course.

On 10 April 2019, HM Treasury opened a consultation on draft regulations, Directions and guidance to implement the exit cap. The consultation ran for 12 weeks and closed on 3 July 2019. The LGA responded ahead of the 3 July deadline:



The document below provides a summary of the consultation and the proposed regulations for local government employers.



Latest advisory bulletin

Advisory Bulletin 682 contains information on the Government’s response to its 2019 consultation on a cap on public sector exit payments and the laying of the implementing regulations before Parliament. There is also information on the Coronavirus Job Retention Scheme Bonus; clarification on the use of the Coronavirus Job Retention Scheme to pay notice pay and redundancy payments; guidance on the tax treatment of employer provided coronavirus test kits; details on requirements to collect staff and visitor details to assist the Test and Trace service and the fact that SSP is now available for those self-isolating due to a member of their support bubble having COVID-19 symptoms.

Gender pay gap reporting – suspension

The Government and the Equality and Human Rights Commission have today issued a statement suspending enforcement for this year’s gender pay gap reporting due to the Coronavirus pandemic


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