Government plans to recover exit payments from high-earning local government officers if they find a similar job within a year, have been labelled ‘ill-conceived’ by employment lawyers.
In response to the government’s consultation, the Employment Lawyers Association (ELA) said the planned legislation could result in an ‘unwelcome seam’ of litigation if passed as drafted.
Maeve Vickery, who chaired the ELA sub-committee which examined the proposals, said: ‘It pains us to say this but the draft legislation is like a poorly-prepared, hastily completed piece of homework – except that it has serious legal implications. There’s a failure to distinguish between payments made on voluntary departure versus departures instigated by the employer, and uncertainty over terms such as ‘same sector’ regarding the person’s next role.
‘We can see what Government is trying to do but it risks being in conflict with statutory and contractual rights, compulsory redundancy rights, voluntary exit agreements and settlement agreements, to name but a few, if it presses ahead as things stand.’
The ELA warned that the proposals may lead to lower settlements and increased litigation to recover payments not subject to the recovery provisions. It also expressed concerns over the retrospective variation of contracts of employment, and warned there may be unintended discriminatory consequences to the legislation.
