Confidentiality clauses and special severance payments
Author | : Great Britain: National Audit Office |
Publisher | : Stationery Office |
Total Pages | : 60 |
Release | : 2013-06-21 |
ISBN-10 | : 0102983755 |
ISBN-13 | : 9780102983753 |
Rating | : 4/5 (55 Downloads) |
Download or read book Confidentiality clauses and special severance payments written by Great Britain: National Audit Office and published by Stationery Office. This book was released on 2013-06-21 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt: There is a lack of transparency, consistency and accountability in the use of compromise agreements in the public sector and little is being done to change this situation. Public sector workers are sometimes offered a financial payment in return for terminating their employment contract and agreeing to keep the facts surrounding the payment confidential. Contracts are often terminated through the use of a compromise agreement and the associated payments are referred to as special severance payments. This report highlights the lack of central or coordinated controls over the use of compromise agreements. The NAO was not able to gauge accurately the prevalence of such agreements or the associated severance payments, due to decentralised decision-making, limited recording and the inclusion of confidentiality clauses which mean that they are not openly discussed. No individual body has shown leadership to address these issues. Compromise agreements can be used for legitimate reasons and it is normal that some information be kept confidential which can benefit both parties. But the practice of including a clause to ensure the employer gives the employee a good reference could help poorly performing staff members gain employment elsewhere in the public sector. Neither the Cabinet Office nor the Treasury provide formal guidance to departments or keep records of the use of compromise agreements across government or the content of confidentiality clauses. Treasury has issued guidance on the associated severance payments. Despite the NAO's statutory access rights, it received only 60 per cent of the compromise agreements requested from departments.