Legal threats to Whitehall payout cuts

Government plans to cut civil service redundancy pay are facing legal challenges from the biggest Whitehall union and the European Court of Justice

by René Lavanchy
Thursday, November 18th, 2010

Government plans to cut civil service redundancy pay are facing legal challenges from the biggest Whitehall union and the European Court of Justice. The Public and Commercial Services Union is considering a court case to halt the plans – due to become law next month – after failing to reach agreement with ministers.

The PCS, representing some 270,000 civil service members, has submitted evidence to MPs and peers arguing that the Superannuation Bill, which will impose changes to the civil service compensation scheme, breaches the Human Rights Act because it reduces accrued rights of civil servants, which they were entitled to expect when they joined. A spokesperson said: “We’re certainly committed to pursuing a legal challenge.”

Meanwhile, the ECJ has ruled that severance pay linked to employees’ age and whether they are entitled to receive a pension is discriminatory. The Prospect union, which is consulting its members on a Government compromise offer, said it was not yet clear whether the scheme would fall foul of the judgment.

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About The Author

René Lavanchy is staff reporter for Tribune
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