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Tory proposals for cap on redundancy payments in public sector, David Reade QC comments on Sky News

David Reade QC appeared on Sky News, as a leading
employment lawyer, to comment on the legality of the Conservative parties’
proposals for a cap on redundancy payments in the public sector. David
commented that ultimately this could be lawfully achieved through legislation
even where, unusually for redundancy
entitlements, there were existing contractual entitlements. Public sector
unions opposed to changes might therefore be driven to respond with industrial
action rather than legal challenges. David further commented that the proposal,
that would be a cap of £95,000, was a blunt mechanism to achieve the state
aims. Whilst the proposal exempts those with salaries below £27,000, redundancy
payments typically embrace a multiplier around length of service as was well as
salary. If the intended target was to restrict large payments to those on high
salaries with short service a restriction which factored in length of service
would be more proportionate.

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