Cardiff Council statement on Settlement Agreements

A spokesperson said: “Following a commitment made in January 2014 and negotiations with trade unions, Cardiff Council ended its routine use of settlement agreements in January 2015, removing them as a requirement of the council’s voluntary redundancy scheme. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

“The council had been operating an enhanced redundancy scheme over a number of years, paying above the statutory amount in order to reduce its workforce more quickly and to make savings. Settlement agreements were used for approximately 10 years to protect against any claims which could have increased the amount paid out and increased the cost to the taxpayer. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

“The council halved its voluntary redundancy package in April 2015 and in the last year has reduced its workforce by 138. The three years prior to that saw 1434 posts lost, an average reduction in its workforce of 478 a year. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

“Settlement agreements do not prohibit staff from talking about their work or having an open debate about the council, however the agreements do include a clause to protect the local authority’s business, interests and reputation. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

“Employees can include a stipulation in the agreement to continue with an outstanding employment tribunal equal pay claim. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

“Settlement agreements are only signed by members of staff after they have had independent professional legal advice about their rights.” ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​