New redundancy regulations for highly paid public sector workers confirmed

Chief secretary to the Treasury Danny Alexander yesterday confirmed government proposals to regulate redundancy payouts for highly paid administrators in the public sector. 

By Sarah.Aston

29 Oct 2014

The new regulations, first announced in the Queen’s Speech in June this year, state that individuals working in the public sector who earn over £100,000 will have to repay all or part of their redundancy pay-out should they return to work in the same part of the public sector within 12 months of redundancy.

The exact amount that administrators will have to repay will depend on the length of time between redundancy and re-employment, the government announced.

According to HM Treasury, new regulations will cover almost all of the public sector but will mainly affect administrators in the NHS and local government, both of which have high numbers of those who have taken redundancy payment and then returned to work in the public sector.

Alexander (pictured) said: “It’s only fair that highly paid executives who receive a redundancy payout from the public purse and then quickly return to the same part of the public sector repay the taxpayer.”

Priti Patel, exchequer secretary to the Treasury, added: “We are ending the revolving door where highly paid public sector workers can leave with redundancy only to rejoin a short while later.”

The regulations will not apply to those in the Army or working for institutions including national museums, public broadcasters and the Bank of England. 


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