On 4 November 2020 the Restriction of Public Sector Exit Payments Regulations 2020 came into effect.
The regulations had an extremely wide-ranging scope affecting the workforce in central and local government, in the NHS and in a large number of other public sector contexts.
The regulations sought to impose a cap on exit payments in the public sector. In 2020 eight separate public sector trade unions issued (between them) six claims to judicially review the regulations. Members of Old Square Chambers acted in five of these six claims.
On 12 February 2021 HM Treasury announced that it had decided to revoke these regulations saying in updated guidance:
“After extensive review of the application of the Cap, the Government has concluded that the Cap may have had unintended consequences and the Regulations should be revoked. HMT [HM Treasury] Directions have been published that disapply the Cap until the Regulations have been revoked.”
The updated guidance can be viewed here.
The relevant Treasury Directions can be viewed here.
Nadia Motraghi (led by David Lock QC of Landmark Chambers) acted for the BMA instructed by Capital Law.