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Latest News On The Public Sector Exit Payment Cap

Further to our last article on the Public Sector Exit Payment Cap, there is still no indication from the Government as to when the payment cap will be implemented. Furthermore, whilst MP Christopher Chope has tabled a Private Members Bill, the Public Sector Exit Payments (Limitations) Bill 2017, that is highly unlikely to ever become law

Background To The Public Sector Exit Payment Cap

On the 1st February 2017, The Enterprise Act 2016 (Commencement No. 2) Regulations 2017 came into force by way of statutory instrument (SI 2017/70). Section 41 of that legislation inserted sections 153A, 153B and 153C into the Small Business, Enterprise and Employment Act 2015. Given this, the Government has had the necessary powers to implement the Public Sector Exit Payment Cap since the the 1st February 2017. However, despite this, no steps have been taken over the last year to implement it. It is believed that the reason for this is due to a combination of the loss of the Conservatives majority in the House of Commons (and its reliance on the DUP to get its legislation through), and the Government’s preoccupation with all things Brexit.

Private Members Bill

Back in July 2017, MP Christopher Chope tabled the Public Sector Exit Payments (Limitations) Bill 2017. At the same time, he and follow Conservative MP, Peter Bone, placed 72 other Private Members Bills before Parliament. The 72 other bills included proposals to decriminalise non-payment of the TV licence, the privatisation of the BBC and Channel 4, and the removal of the working time regulations. In response, Labour MP Paul Flynn, stated: “Apparently they slept in the building for three days to grab first place in the queue, in my view abusing the system by putting down 70 bills where there are only a certain number of slots.” However, Christopher Chope justified his actions by arguing that the bills represented constructive proposals that could find their way into the Conservative Party manifesto. Nevertheless, whilst the Public Sector Exit Payments (Limitations) Bill 2017 had its first reading on the 5th September 2017, and is due its second on the 11th May 2018, like the 72 other bills tabled by Christopher Chope and Peter Bone, it is highly unlikely to be enacted as it is unlikely to receive Government backing. This is because the Government already has the powers to implement the Public Sector Exit Payment Cap at a time of its choosing under The Enterprise Act 2016 (Commencement No. 2) Regulations 2017.

Posted in General Employment Law, Public Sector Exit Payment Cap and tagged , .