Enterprise Bill (HC Bill 142)

10Part 9 Public sector employment: restrictions on exit payments

41 Restriction on public sector exit payments

(1) Before section 154 of the Small Business, Enterprise and Employment Act 2015
(but after the italic heading preceding that section) insert—

153A 15 Regulations to restrict public sector exit payments

(1) Regulations may make provision to secure that the total amount of exit
payments made to a person in respect of a relevant public sector exit
does not exceed £95,000.

(2) Where provision is made under subsection (1) it must also secure that
20if, in any period of 28 consecutive days, two or more relevant public
sector exits occur in respect of the same person, the total amount of exit
payments made to the person in respect of those exits does not exceed
the amount provided for in subsection (1).

(3) An exit payment is in respect of a relevant public sector exit if it is
25made—

(a) to an employee of a prescribed public sector authority in
consequence of the employee leaving employment, or

(b) to a holder of a prescribed public sector office in consequence of
the office-holder leaving office.

(4) 30An exit payment is a payment of a prescribed description.

(5) The descriptions of payment which may be prescribed include—

(a) any payment on account of dismissal by reason of redundancy
(read in accordance with section 139 of the Employment Rights
Act 1996);

(b) 35any payment on voluntary exit;

(c) any payment to reduce or eliminate an actuarial reduction to a
pension on early retirement or in respect of the cost to a pension
scheme of such a reduction not being made;

(d) any severance payment or other ex gratia payment;

(e) 40any payment in respect of an outstanding entitlement;

(f) any payment of compensation under the terms of a contract;

(g) any payment in lieu of notice;

(h) any payment in the form of shares or share options.

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(6) In this section a reference to a payment made to a person includes a
reference to a payment made in respect of that person to another
person.

(7) For the purposes of subsection (2), a public sector exit occurs when the
5person leaves the employment or office in question (regardless of when
any exit payment is made).

(8) Regulations may include—

(a) provision which exempts from any provision made under
subsection (1) exit payments, or exit payments of a prescribed
10description, made in prescribed circumstances;

(b) provision which, in consequence of provision made under
subsection (1), amends a relevant public sector scheme so as to
make any duty or power under the scheme to make exit
payments subject to any restriction imposed by regulations
15under subsection (1) (taking account of any relaxation of such a
restriction which may be made under section 153C);

(c) provision which makes an amendment of any provision made
by or under an enactment (whenever passed or made) which is
necessary or expedient in consequence of any provision made
20by or under this section.

(9) Regulations may substitute a different amount for the amount for the
time being specified in subsection (1).

(10) Nothing in this section applies in relation to payments made by
authorities who wholly or mainly exercise functions which could be
25conferred by provision included in an Act of the Northern Ireland
Assembly made without the consent of the Secretary of State (see
sections 6 to 8 of the Northern Ireland Act 1998).

(11) In this section—

  • “enactment” includes an Act of the Scottish Parliament, a Measure
    30or Act of the National Assembly for Wales and Northern
    Ireland legislation;

  • “prescribed” means prescribed by regulations under this section;

  • “relevant public sector scheme” means—

    (a)

    a scheme under section 1 of the Superannuation Act
    351972 (civil servants);

    (b)

    a scheme under section 7 of that Act (local government
    workers);

    (c)

    a scheme under section 9 of that Act (teachers);

    (d)

    a scheme under section 10 of that Act (health service
    40workers);

    (e)

    a scheme under section 1 of the Public Service Pensions
    Act 2013 (schemes for persons in public service);

    (f)

    a scheme under section 26 of the Fire Services Act 1947
    or section 34 of the Fire and Rescue Services Act 2004
    45(fire and rescue workers);

    (g)

    a scheme under section 1 of the Police Pensions Act 1976
    or section 48 of the Police and Fire Reform (Scotland)
    Act 2012 (members of police forces);

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    (h)

    any other prescribed scheme (whether established by or
    under an enactment or otherwise).

153B Supplementary provision about regulations under section 153A

(1) Subject to subsection (2), the power to make regulations under section
5153A is exercisable—

(a) by the Scottish Ministers, in relation to payments made by a
relevant Scottish authority;

(b) by the Treasury, in relation to any other payments.

(2) Where the relevant Scottish authority is the Scottish Administration (or
10a part of it) the power to make regulations under section 153A is
exercisable by the Treasury (instead of the Scottish Ministers)—

(a) in relation to payments made to the holders of offices in the
Scottish Administration which are not ministerial offices (read
in accordance with section 126(8) of the Scotland Act 1998), and

(b) 15in relation to payments made to members of the staff of the
Scottish Administration (read in accordance with section
126(7)(b) of that Act).

(3) The power to make provision of the kind mentioned in section
153A(8)(b) (power to amend public sector schemes), so far as
20exercisable by the Treasury, is also exercisable concurrently by any
other Minister of the Crown (within the meaning of the Ministers of the
Crown Act 1975) with the consent of the Treasury.

(4) Regulations under section 153A—

(a) if made by the Treasury, are subject to the affirmative resolution
25procedure;

(b) if made by the Scottish Ministers, are subject to the affirmative
procedure.

(5) In this section “relevant Scottish authority” means—

(a) the Scottish Parliamentary Corporate Body, or

(b) 30any authority which wholly or mainly exercises functions
within devolved competence (within the meaning of section 54
of the Scotland Act 1998).

153C Power to relax restriction on public sector exit payments

(1) A Minister of the Crown may relax any restriction imposed by
35regulations made by the Treasury under section 153A.

(2) The Scottish Ministers may relax any restriction imposed by
regulations made by the Scottish Ministers under section 153A.

(3) A requirement may be relaxed—

(a) in respect of a particular employee or office-holder or a
40description of employees or office-holders;

(b) in relation to the whole or any part of an exit payment, or a
description of exit payments.

(4) Regulations under section 153A made by the Treasury may—

(a) make provision for the power under subsection (1) to be
45exercisable on behalf of a Minister of the Crown by a person
specified in the regulations;

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(b) make provision for a requirement to be relaxed only—

(i) with the consent of the Treasury, or

(ii) following compliance with any directions given by the
Treasury;

(c) 5make provision as to the publication of information about any
relaxation of a requirement granted.

(5) Regulations under section 153A made by the Scottish Ministers may—

(a) make provision for the power under subsection (2) to be
exercisable on behalf of the Scottish Ministers by a person
10specified in the regulations;

(b) where provision is made by virtue of paragraph (a), make
provision for a requirement to be relaxed only—

(i) with the consent of the Scottish Ministers, or

(ii) following compliance with any directions given by the
15Scottish Ministers;

(c) make provision as to the publication of information about any
relaxation of a requirement granted.

(6) Regulations under section 153A(1) made by the Treasury may make
provision for the power conferred on a Minister of the Crown by
20subsection (1) to be exercised instead by the Welsh Ministers, in relation
to exit payments made by an authority who wholly or mainly exercises
functions which could be conferred by provision falling within the
legislative competence of the National Assembly for Wales (as defined
in section 108 of the Government of Wales Act 2006).

(7) 25In this section “Minister of the Crown” has the same meaning as in the
Ministers of the Crown Act 1975.”

(2) Schedule 6 makes amendments consequential on subsection (1), and related
provision.

Part 10 30General provisions

42 Consequential amendments, repeals and revocations

(1) The Secretary of State or the Treasury may by regulations make such provision
as appears to the Secretary of State or the Treasury to be appropriate in
consequence of this Act.

(2) 35The power conferred by subsection (1) includes power—

(a) to make transitional, transitory or saving provision;

(b) to amend, repeal, revoke or otherwise modify any provision made by
or under an enactment (including an enactment passed or made in the
same Session as this Act).

(3) 40Regulations under this section are to be made by statutory instrument.

(4) An instrument containing regulations under this section which amend, repeal
or revoke any provision of primary legislation may not be made unless a draft
of the instrument has been laid before Parliament and approved by a
resolution of each House of Parliament.