g. Gratuities

Some older contracts may indicate that the council will make a gratuity payment to a person retiring from the employment in certain circumstances.  Such gratuity payments were permitted in lieu of a pension under the Local Government (Discretionary Payments) Regulations 1996, until the regulations were revoked in 2012.

Where there appears to be a pre-2021 'extant contractual obligation' to make such a payment, councils are strongly advised to seek legal confirmation and a calculation of the amount permitted to be paid.  NALC issues Legal Topic Note 34 on this subject when the law changed, and are able to advise councils on individual cases.  Enquiries should be submitted via SALC in the normal way, ensuring a copy of the original contract is included.