A recent newspaper article from Leicestershire Live has revealed that Leicester City Council has paid out £531,716 in relation to 36 settlement agreements that it entered into with former employees between 2016 – 2018.
£531,716 Paid Out On 36 Settlement Agreements
A freedom of information request from Leicestershire Live found that Leicester City Council has paid out £531,716 in relation to 36 settlement agreements since 2016. The largest pay out was £62,000.00, with an average payout across the 36 settlement agreements being £14,769.00.
A spokesperson for Leicester City Council confirmed that the settlement agreements contained no confidentiality clauses, and added that: “Settlement agreements are most commonly used where it is considered that it is in the best interests of the council to reach an appropriate and swift conclusion to circumstances which could otherwise cause operational disruption, management downtime and/or unnecessary additional financial cost. In most cases the settlement amount will generally reflect payments an employee may have been entitled to under normal circumstances, for example pay in lieu of any notice period. The use of settlement agreements helps to protect the council against the risk of future claims that may be made by ex-employees, as is the practice across the whole public sector. We always seek to get the best deal for the council and our use of public funds, just the legal costs and time involved in defending even a completely unfounded or hopeless employment tribunal case can be several tens of thousands of pounds.“
Leicestershire County Council
An earlier freedom of information request by Leicestershire Live revealed that Leicestershire County Council had entered into 52 settlement agreements with its employees between 2016 and 2018, with a combined pay out of £465,144.44. The highest payment was £48,589.87.
Devon County Council
As was highlighted in an earlier article, a freedom of information request by the Exmouth Journal revealed that Devon County Council had paid out £1,965,370 in relation to 145 settlement agreements that it had entered into with former employees between 2013 – 2017.