States Pays £5M To Staff Leaving Under Confidential Agreements

Tuesday, 25 April 2023 09:41

165 States of Guernsey staff have received exit payments under Compromise Agreements.

The figures are revealed in written answers to questions filed under Rule 14 by deputy Marc Leadbeater.

In it, Policy and Resources says 165 staff have left after signing a Compromise Agreement and receiving a pay out.

Compromise Agreements are a legally recognised way for an employer and employee to reach an agreement and draw a line under an employment contract, usually with a sum being paid to the member of staff.

The maximum number of staff receiving a Compromise Agreement payment in any one year was 19, while the minimum was six.

The highest annual payout was in 2016, at just under £664,000 while the lowest was £325,000 in 2015.

The total, over 10 years, was £5,095,916. A comparison is given at today's prices, which takes the figure to £6,117,150.

Deputy Leadbeater also asked if employees received enhanced pension payments, or were able to carry on using their corporate car.

The president of P&R, deputy Peter Ferbrache said that wasn't the case:

"Since the pension rules were changed in 2015, “enhanced pension” payments as part of a Compromise Agreement are not possible. I am not aware of any retained vehicles or similar benefits being awarded."