We have an employee who is due to retire later this year. We would like to pay them an ex gratia payment during this financial year equivalent to the salary they would have received up to their retirement date.

We are not worried about them not turning up for work or becoming ill.

What I am not sured about is whether we are allowed to pay the ex gratia payment in this financial year when they won’t actually leave us until part way through the next financial year.

Can any one give me any advice?

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