Severance and other payments

For staff severance payments, consider the following before making a commitment: Whether the proposed payment is in the interests of the trust Whether a payment is justified and value for money, based on a legal assessment of the case The level of settlement, which must be less than the legal assessment of what the relevant body (e.g. an employment tribunal) is likely to award Obtain the Education and Skills Funding Agency's (ESFA's) prior approval for the non-contractual/non-statutory element of a staff severance payment of £50,000 or more (gross, before deductions) Not accept a settlement for a staff severance payment unless it satisfies the conditions in the Academies Financial Handbook When considering making a compensation payment, base its decision on a careful appraisal of the facts, including legal advice, and ensure value for money will be achieved Obtain the ESFA's prior approval for a non-contractual/non-statutory compensation payment of £50,000 or more Obtain the ESFA's prior