Ministers believe that their proposed reforms, which will include a cap on redundancy payments, will produce £250 million a year in savings.
However, the National Association of Head Teachers (NAHT) disagrees, warning that the reforms will lead to more tribunals and fewer people accepting voluntary redundancy.
A consultation over the plans closed in May and the government this week confirmed that despite a number of objections being raised among the responses it still intends to push ahead with the plans.
The plans include a maximum tariff for calculated exit payments of three weeks’ pay per year of service and a ceiling of 15 months on the maximum number of months’ salary that can be paid. There will also be a maximum salary on which an exit payment can be based – which is expected to be around £80,000.
Each government department, including the Department for Education, is now to produce its own proposals for reform based on the overall plan and the Treasury wants to see the changes introduced within nine months.
A Treasury statement said: “The new framework ensures a fair and appropriate level of compensation is provided for employees who are required to leave public sector jobs, whether on a mutually agreed or voluntary basis, or through compulsory redundancy.
“The government has already committed to introducing two other measures on public sector compensation: a cap on all public sector exit payments at £95,000; and ‘clawback’ of redundancy compensation when a highly paid individual returns to the public sector shortly after receiving an exit payment.”
Other measures in the plans include a taper on the amount of lump sum compensation an individual is entitled to receive as they get closer to their normal pension retirement age and “action to limit or end employer-funded early access to pension as an exit term”.
However, NAHT general secretary Russell Hobby said it was “disappointing” that the government had dismissed the concerns raised in the consultation.
He explained: “There is no evidence that the majority of public sector payments are more generous than the private sector. The government’s claim that the changes will save money is also questionable.
“With lower payments, fewer people will apply for voluntary redundancies, thereby leading to more compulsory redundancies, which are costlier.
“Plans to cap redundancy payments at 15 months’ salary will also be counterproductive. This cap will see more people resort to employment tribunals, increasing costs. And at a time when we need to keep school leaders in the profession, is it right to put in place a cap than penalises those who remain in the profession for many years?”
Mr Hobby continued: “These changes act as a further deterrent to leaders to take on the most challenging schools.
“In a high-stakes system, the government has two choices: to ensure the right incentives are in place so people take on career risks, or address the high-stakes accountability system itself. Unfortunately the government has chosen to do neither.”
Chief secretary to the Treasury David Gauke said: “These reforms ensure public sector exit payments are consistent and fair, and that they are also fair to taxpayers too.
“By applying these reforms across public sector workforces for the first time, appropriate standards will be in place for workers and public services will remain protected.”