NALC Legal Topic Notes: Employment


The current regulations which govern the payment of gratuities are contained in Part VI of the Local Government (Discretionary Payments) Regulations 1996, SI 1680 (“the 1996 Regulations”). The Local Government (Discretionary Payments) (Injury Allowances) Regulations 2011, SI 2954 (“the 2011 Regulations”), will come into force on 16 January 2012 and will revoke Part VI of the 1996 Regulations. The effect of the 2011 Regulations is that after 16 January 2012, councils will no longer have the discretion to pay a retirement gratuity. However, the Government’s view (with which NALC is in agreement) is that local councils may still fulfil any extant contractual obligations for the payment of gratuities There is a separate NALC employment briefing which gives more information about the background to and effect of 2011 Regulations.

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