Almost £1m spent on States 'compromise agreements'

The States of Guernsey paid almost £1m in compromise agreements to staff who have left since the start of 2023, a Freedom of Information (FOI) request has revealed.

A compromise agreement is a legally binding contract between an employer and an employee to settle potential claims with financial compensation.

Thirty-one people have left under compromise agreements since 2023, with 17 in 2023 costing £455,961.73 and 14 so far in 2024 costing £378,546.19.

Between 2012 and 2022 a total of 165 States employees left with a compromise agreement, at an overall cost of £5,095,916.

In a response to two FOI requests, the States of Guernsey justified the use of these agreements.

"They can be a useful tool to enable an employer and its employee to bring an employment relationship to an end," it said.

"Whilst the States of Guernsey is a good and fair employer there are occasions where the best solution for the employer and employee is to end the relationship and a Compromise Agreement remains an appropriate mechanism to achieve this."

The FOI request did ask for the agreements to be broken down by committee, but the Policy and Resources Committee said it could not be done due to issues around privacy.

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