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<p>The responsibilities for academy trusts on severance pay and exit packages are
set out in the Academy Trust Handbook (ATH), which is available at: <a href="https://www.gov.uk/guidance/academy-trust-handbook"
target="_blank">https://www.gov.uk/guidance/academy-trust-handbook</a>. Where the
academy trust is considering a staff severance payment, including a non-statutory/non-contractual
element (also referred to as a special severance payment) of £50,000 or more, the
Education and Skills Funding Agency’s (ESFA) prior approval must be obtained before
making any offer to staff. The ESFA will refer such transactions to HM Treasury. Additionally,
in accordance with HM Treasury’s Guidance on Public Sector Exit Payments, academy
trusts must obtain prior ESFA approval before making a non-statutory/non-contractual
staff severance payment where: an exit package, which includes a non-statutory/non-contractual
severance payment, is at, or above, £100,000; and/or the employee earns over £150,000.
The guidance is available at: <a href="https://www.gov.uk/government/publications/public-sector-exit-payments-guidance-on-special-severance-payments"
target="_blank">https://www.gov.uk/government/publications/public-sector-exit-payments-guidance-on-special-severance-payments</a>.</p><p>The
ATH is also clear that staff severance payments should not be made where they could
be seen as a reward for failure, such as gross misconduct or poor performance.</p><p>The
responsibility for maintained schools’ severance and exit payments sits with the school
and the Local Authority.</p>
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