Utilisation of Compromise Agreements

Information about the publication of Ministerial Decisions

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made 27 February 2012:

Decision Reference: MD-C-2012-0027
Decision Summary Title :	Utilisation of Compromise Agreements		Date of Decision Summary:	27 February 2012
Decision Summary Author:	Director of Human Resources		Decision Summary: Public or Exempt?	Report – Public Guidance – Exempt (3.2.1(a)(xiv)
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	Utilisation of Compromise Agreements		Date of Written Report:	24 February 2012
Written Report Author:	Director of Human Resources		Written Report : Public or Exempt?	Report – Public Guidance – Exempt (3.2.1(a)(xiv)
Subject: Utilisation of Compromise Agreements
Decision(s): The Chief Minister agreed on behalf of the SEB to present to the States the attached report on utilisation of compromise agreements and to disclose the previous Chief Executive’s severance payment.
Reason(s) for Decision: In response to concerns raised by States Members and the wider public, the States Employment Board has drafted a new guidance framework policy and guidelines concerning the use of compromise agreements.
Resource Implications: There are no resource implications
Action required: The Greffier is requested to present report to the States at the earliest opportunity.
Signature:		Position: Senator I J Gorst, Chief Minister
Date Signed:		Date of Decision (If different from Date Signed):

States Employment: Compromise Agreements and Disclosure of previous Chief Executive's severance payment

Chief Ministers Department

Ministerial Decision Report

STATES EMPLOYMENT BOARD

UTILISATION OF COMPROMISE AGREEMENTS

In response to concerns raised by States Members and the wider public, the States Employment Board has drafted a new guidance framework policy and guidelines (attached) concerning the use of compromise agreements.

A compromise agreement is defined as a legally binding agreement in which an employee (or ex-employee) agrees not to pursue particular claims in relation to his or her employment or its termination, which is usually accompanied by a financial settlement that is considered to be in full and final settlement of any claims that might have been pursued by either party. Such an agreement is normally mutually beneficial to both parties, employer and employee and is accompanied by a confidentiality clause.

The Board will require regular reports on the use of compromise agreements across the States in order to satisfy itself that the policy is being applied as intended. Where compromise agreements are being considered for senior staff in the Civil Service “A” grades, or, where the salary is in excess of £100k, prior approval from the SEB will be required.

Acknowledging the Proposition (P2/2012) lodged by Deputy Le Hérissier concerning contractual arrangements for Chief Officers, a request to disclose the sums in two recent compromise agreements was made to the individuals concerned. Following contact with the former Chief Executive Officer who left his post in May 2011, he has agreed that his settlement of £546,337.50p can be disclosed which was as a result of his contractual agreement with the States of Jersey. A response is awaited from the other former officer of the States.

The Chief Minister is aware that the Comptroller and Auditor General has announced that he is to undertake an investigation to review the use of “Golden Handshakes” within the States of Jersey.

The Chief Minister welcomes this review and will await the outcome of the C&AG report so that any recommendations arising can be built into the final version of the new SEB Severance Guidance Framework policy.