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NHS severance pay must reflect lawsuit risk, says guidance

6 November 2009

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The risk of a senior NHS manager claiming for sex/race/age discrimination and unfair dismissal must be taken into account when considering severance pay, according to advice.

NHS Employers, which represents trusts on workforce issues, has published guidance to help those dealing with managers covered by the Very Senior Managers Pay Framework.

Although this usually means chief executives, or directors reporting to them, the advice suggests that it would be good practice to apply the guidance to other employees as well.

It essentially requires that the percentage chance of success of any employment lawsuit should be calculated and a realistic view taken of the employer’s liability.

The guidance explains how payments can demonstrate value for money if they are judged to be the same or less than any potential liabilities and legal costs.

Included in the guidance are draft templates for proposals to the remuneration committee, for writing to the Strategic Health Authority (SHA) and applying for government approval.

Copyright © Press Association 2009

NHS Employers