Scottish Public Finance Manual

Included

Not Included

Any non-contractual sum agreed as part of the compensation

Pension benefits to which the employee is already entitled

Pay in Lieu of Notice

Mandatory payments made by the employer to the pension scheme to either top up pension or underwrite the actuarial reduction to allow early access to pension benefits (sometimes known as strain costs for fully funded schemes) *

Payments for accrued annual leave or other time off owed to employee

Awards made by an Employment Tribunal or other court of law

Lump sum severance payments due under any compensation scheme for early exit, redundancy etc.

Payments for legal costs incurred by employee

Any additional payments made to employee e.g. for outplacement support

Discretionary payments made by the employer to the pension scheme to either top up pension or underwrite the actuarial reduction to allow early access to pension benefits