The cap is to be set at £95,000 initially and will apply to the vast majority of exit payments including redundancy, pay in lieu of notice, early unreduced access to pensions and "special severance" payments such as those agreed in settlement of threatened litigation. There will be a waiver to allow higher payments in exceptional circumstances and a number of payments are specifically excluded including payments in respect of an employee's death, ill health retirement and payments flowing from specified legal action.
It is intended that most public bodies in Great Britain will be covered by the cap although notably financial bodies and public broadcasters are excepted. However, the Government has said it expects such organisations to establish their own commensurate caps. In Scotland it will be a matter for the Scottish Government to decide whether they wish the cap to apply to devolved bodies.
The UK Government also intends to proceed with its proposal to introduce a legal requirement for unions to appoint a picket supervisor who will have responsibility for the conduct of a picket. However, the plans to introduce a new criminal offence of intimidation on the picket line and to require unions to report annually on their industrial action and picketing activities will not be taken forward nor will the requirement to publish in advance the unions plans for industrial action, pickets or social media campaigns.