NUJ welcomes government's decision to drop exit payment cap

  • 12 Feb 2021

The union is part of a challenge to the public sector £95,000 cap, which compromised equal pay settlements and undermined collective pay and conditions terms.

The NUJ has welcomed the government's decision today to revoke the Restriction of Public Sector Exit Payments Regulations 2020 that imposed a cap of £95,000 on exit payments, including at the BBC.

The NUJ is part of a legal challenge against the government regarding the implementation of the regulations, arguing that its unintended consequences have compromised equal pay settlements and undermined the collective terms and conditions of staff without any consultation with the joint unions.

Paul Siegert, NUJ national broadcasting organiser, said:

"This is fantastic news and shows the folly of rushing through legislation without looking at the potential consequences. At the BBC, this year alone, hundreds of hardworking staff would have suffered a financial loss compared to the previous generation.
"The redundancy terms form part of their contracts of employment and no government should be able to come along and change them without there being proper consultation between the relevant parties. We now have to ensure that those who have been affected already by the cap are properly financially compensated."

Michelle Stanistreet, NUJ general secretary, added:

"It is a huge relief that the weight of opposition from the NUJ and other trade unions has finally woken up the government to the consequences of this botched piece of legislation. Over 2,000 jobs are set to be lost at the BBC, with redundancy consultations in train that have seen our members' contractual terms and conditions torn up without any proper consultation or agreement as a result of the imposition of this cap.
"It is important that a sensible and swift process is now established to ensure that those individuals who have been impacted by this cap, and lost thousands of pounds as a consequence, are fully reimbursed and their contractual rights restored and respected."

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