BBC brings in redundancy cap for all

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Redundancy payments for all staff will be capped at £150,000 from next month.

Employees will be entitled to redundancy of one month's pay for each year of service up to a maximum of 24 months' salary (or 12 for those who joined after January 1 2013) or £150,000 - whichever is lower.

The BBC had previously proposed to limit accrual to 12 years' service and to freeze it for those who had been at the BBC longer than 12 years.

The £150,000 cap was brought in for senior managers last month.

Senior manager pay-offs

Tony Hall announced in April his plans to introduce the flat rate cap in one of his first acts as director general.

It followed criticism from the Public Accounts Committee over the £25m spent by the corporation on severance payments to 150 senior staff in the three years to December 2012.

Among them, deputy director general Mark Byford collected £949,000, chief operating officer Caroline Thomson received £670,000 and George Entwistle took away £450,000 after his short spell as DG.

Hall said in April that it was 'right' to limit the size of the payments in the current economic climate and that his proposals represented 'a fair way forward for staff and for licence fee payers'.

The implementation of the cap follows a consultation period and has the support of the unions.

Meanwhile, BBC Trust chairman Lord Patten, HR director Lucy Adams and former director general Mark Thompson are expected to appear before the Public Accounts Committee on September 9 to answer further questions about BBC executive pay-offs.

Others due to appear are BBC Trustee Anthony Fry, former trust chairman Sir Michael Lyons and former senior independent director Marcus Agius.

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