Background
Termination of employment may result in claims by the employee against the employer. One of the means of mitigating this risk is entering into compromise agreements where a financial settlement is reached in return for the parties waiving any claims they might have against one another.
In 2012 the Comptroller and Auditor General (C&AG) issued a report on the Utilisation of Compromise Agreements and a separate report The Former Chief Executive – Compromise Agreement. The reports identified a number of weaknesses in arrangements and made recommendations for improvement.
Scope
This review evaluates:
- the adequacy of the arrangements put in place to manage and monitor the implementation of the recommendations made by the C&AG
- the extent to which the actions taken or identified against each recommendation meet the intended purpose of the recommendation; and
- the progress made in implementing agreed recommendations.
Conclusions
The States have taken steps to implement some, but not all, of the recommendations.
Priority areas for further action are:
- embedding arrangements to respond to the impact of ministerial government when driving corporate change and, at the same time, delivering departmental priorities
- reviewing contractual terms for senior staff when opportunities arise, taking into account the need for reform
- developing the system of performance management, including for Corporate Management Board members, so that corporate priorities are clearly reflected and cultural change is clearly led from the top; and
- developing and applying clear consistent documentation standards to support decisions to use compromise agreements.
View Report
Follow Up Report
5th May 2016
