Settlement Agreements

Summary

The requester asked for statistics on Settlement Agreements issued by the Cabinet Office since September 2021 and a blank template. The authority provided the template but withheld the statistical data and compensation figures, citing exemptions.

Key Facts

• The request covered Settlement Agreements issued between 1 September 2021 and the date of the request.
• The Cabinet Office provided a blank template of a Settlement Agreement used by the Public Service Commission.
• The template references the Equality Act 2017 and the Trades Disputes Act 1985.
• The template includes clauses regarding termination payments, notice periods, and non-disparagement.
• Specific data on the number of agreements and monetary compensation figures was not disclosed.

Data Disclosed

• 1 September 2021
• 2024-12-31
• 2025-01-21
• £30,000
• 6 years
• 7 pages
• 2 documents

Exemptions Cited

• Part exempt outcome (specific exemption clauses not explicitly named in the text, though the template notes confidentiality obligations under clause 9)

Original Request

Dear Sir, Please may you provide me with the total number of Settlement Agreements that have been issued by the Cabinet Office between September 2021 and current. Please may this be broken down into a table which categorises the reason for the Settlement Agreement (e.g. disciplinary etc.) and also the monetary compensation figure associated with each respective Settlement Agreement. Lastly, please may you provide me with a blank copy of the Settlement Agreement that is currently on file that would be used as a template to fill in the blanks as per se. Thanks. On 30 December we wrote to ask you to provide clarification: In order to identify and locate the information that you have asked for we need some further information from you. In particular, it would be helpful to know, where in your request you refer to September 2021, whether you wish the date range of your request to start on 1st September 2021 (i.e. from the start of September 2021 to the date of your request) or 30th September (i.e. from the end of September to the date of your request). On 2 January 2025, you provided clarification as follows: '1 September 2021 please'

Data Tables (1)

Full Response Text

EQUALITY ACT 2017 employee (enter name) V PUBLIC SERVICE COMMISSION/Department

The Industrial Relations Officer acting in accordance with section 104 of the Equality Act 2017 has reached a settlement between the employee and employer whereby:-

1) The employment will terminate on (xxx date) (the termination date) by redundancy/or mutual agreement/or resignation. For clarity all pay and contractual benefits will cease on that day.

2) A final salary payment of £XXXXX gross will be made on (xxx date) via normal payroll

3) You are entitled to xx weeks’/months’ notice that your employment will terminate. (Select one of the options (a-c ) below)

(a) You have been given the required xx weeks’/months’ notice and you will be required to work during this period. The notice period ends on your termination date and no additional payment for pay in lieu of notice is due. Or (b) You are entitled to xx weeks’/months’ notice and you will be required to work up to and including the agreed termination date. As you will have worked only part of your notice period, you will be paid for the remaining notice of xx weeks’/months’ amounting to £xxxx gross, with your final salary.
Or (c) You will not be required to work any of your xx weeks’/months’ notice period up to the termination date, but you will receive payment in lieu of this amounting to £xxxx gross, with your final salary.

4) There is no payment due in respect of accrued but untaken holiday entitlement. OR The employer will make a payment of £xxxx/or a payment equivalent to xxx days in respect of accrued but untaken holiday entitlement (subject to tax and NI deductions).

When a compensation payment for loss of office is to be made 5) In addition to the above a further payment of £xxx will be made on xxx date. This payment constitutes a termination payment for loss of office. In accordance with section 48A, Income Tax Act 1970, the parties believe that the first £30,000 of this sum will not be subject to income tax. The Public Service Commission/Department does not warrant that no Income Tax liability arises in respect of this termination payment and the employee will be responsible for paying any Income Tax that is due. The parties believe that there is no liability to pay National Insurance contributions on any part of this payment.

Ground Floor, Imperial Buildings Bath Place, Douglas Isle of Man
IM1 2BY Telephone (01624) 672942 Web mirs.org.im Email
iro@mirs.org.im Manx
Industrial Relations Service Appointed under Section 5 of the Trades Disputes Act 1985 Industrial Relations Officer Kimberley Emery If a reference is to be offered 6) Upon request from a prospective employer either verbally or in writing, the Public Service Commission/Department will provide a reference for the employee, a copy of which is attached to this agreement. Reference requests will be responded to for a period of 6 years following the termination date. OR Upon request from a prospective employer, the Public Service Commission/Department will provide a reference for the employee. Reference requests will be responded to for a period of 6 years following the termination date.

7) The employee will return all property belonging to the Public Service Commission/ Department of xxx, in their possession. This will ordinarily include all documents in whatever format (including electronic). This will include photographic identification and security entrance cards

8) Both the employee and the Public Service Commission/Department agree not to directly or indirectly, make or publish or otherwise communicate any disparaging or derogatory statement in writing or otherwise (including on social media) which is intended to or which might otherwise be expected to damage or lower the reputation of the other party.

9) The parties agree not to disclose the fact or terms of this settlement to any third party other than their professional legal advisors, auditors, insurers or accountants, or should the Public Service Commission/Department be required to answer any Tynwald Question or to respond to a Freedom of Information request or where in any other circumstances the written consent has been obtained (such consent not to be unreasonably withheld) and in response to any such Question or request, the information to be disclosed will wherever possible be provided to an anonymised basis. Nothing in this clause will apply where such a disclosure is required by law.

The employee accepts the above in full and final settlement of all claims of whatsoever nature that he/she might have against the Public Service Commission/Department arising directly or indirectly out of his employment or its termination. For the avoidance of doubt, nothing in this agreement shall affect or otherwise prevent the employee from making a protected disclosure in accordance with Part IV of the Employment Act 2006.

Signed by employee (enter name), this being my acceptance of this settlement.

……………………………………………………….

Date…………………………….

PSC signature…………………………………….

Date……………………………. Secretary, Public Service Commission

OR

Department Signature…………………………. Department of xxxxx

1

Government Office Douglas Isle of Man IM1 3PN Telephone: (+44) 01624 686244
Website: www.gov.im/co

Our ref: 4339567 21 January 2025

Dear ###

We write further to your request, received 31 December 2024, which states:

"Dear Sir,

Please may you provide me with the total number of Settlement Agreements that have been issued by the Cabinet Office between September 2021 and current.

Please may this be broken down into a table which categorises the reason for the Settlement Agreement (e.g. disciplinary etc.) and also the monetary compensation figure associated with each respective Settlement Agreement.

Lastly, please may you provide me with a blank copy of the Settlement Agreement that is currently on file that would be used as a template to fill in the blanks as per se.

Thanks.”

On 30 December we wrote to ask you to provide clarification. We asked if you could clarify whether you wish the date range of your request to start on 1 September 2021 or 30 September.

On 2 January 2025, you provided clarification as follows:

“1 September 2021 please”

Our response to your request is as follows: I have detailed below the information:

Please may you provide me with the total number of Settlement Agreements that have been issued by the Cabinet Office between September 2021 and current.

The Office of Human Resources, Cabinet Office does not enter into conciliated settlement agreements, rather they are a binding agreement between an individual and their employer. In this instance the stationed employer is Cabinet Office. Between

1 September 2021 and 30 December 2024, the total number of settlement agreements was 19.

Please may this be broken down into a table which categorises the reason for the Settlement Agreement (e.g. disciplinary etc.) and also the monetary compensation figure associated with each respective Settlement Agreement. While our aim is to provide information whenever possible, in this instance we are unable to provide some of the information you have requested because it is absolutely exempt under section 25(2)(b) (absolutely exempt personal information)of the Freedom of Information Act 2015 (the Act). The reasons why that exemption applies are that: • The Cabinet Office is satisfied that the information amounts to personal data of which you are not the data subject; and • The Cabinet Office is satisfied that disclosure of the information would contravene one of the data protection principles as set out at Article 5 of the General Data Protection Regulation as it applies in the Isle of Man pursuant to the Data Protection (Application of GDPR) Order 2018, namely that the Cabinet Office can only disclose the information where it would be fair, lawful and meet one of the conditions for lawful processing in Article 6 and in this case, none of those conditions have been met. To provide advice and assistance, in line with section 15 of the Act, we have provided a breakdown of the total monetary compensation figures within the requested timeframe by calendar year.

The following figures are Settlement Agreements for Cabinet Office:

Calendar Year Settlements Amount 2021 £44,489.48 2022 £1,190,986.43 2023 £217,657.23 2024 £54,965.33 Total £1,508,098.47

There are several reasons why a conciliated settlement agreement may be considered appropriate and these include the PSC Mutually Agreed Resignation Scheme (MARS), buying out of terms and conditions, voluntary redundancies and settlement of employment disputes.

Conciliated settlement agreements ae used to settle employment disputes which are, or have the potential to be subject to legal action such as a claim to an employment tribunal. In certain cases, the use of a conciliated settlement agreement may be more cost effective.

The circumstances of agreed settlements are often complex, with a variety of factors having an influence on the terms of agreement. Each case is considered on its own merits with appropriate advice being sought from the Office of Human Resources and the Attorney General’s Chambers.

Lastly, please may you provide me with a blank copy of the Settlement Agreement that is currently on file that would be used as a template to fill in the blanks as per se.

A copy of the settlement agreement template is attached at Appendix 1.

In accordance with Section 164 of the Employment Act 2006 and Section 104 if the Equality Act 2017, a settlement agreement is only valid when brokered under the auspices of the Manx Industrial Relations Service (MIRS), and any such financial settlements paid on termination are properly concluded by MIRS. The settlement agreement template held by the Office of Human Resources, Cabinet Office, has been provided by MIRS for the assistance of Isle of Man Government employers.

Please quote the reference number 4339567 in any future communications.

Your right to request a review

If you are unhappy with this response to your freedom of information request, you may ask us to carry out an internal review of the response, by completing a complaint form and submitting it electronically or by delivery/post.

An electronic version of our complaint form can be found by going to our website at https://services.gov.im/freedom-of-information/Review . If you would like a paper version of our complaint form to be sent to you by post, please contact me and I will be happy to arrange for this. Your review request should explain why you are dissatisfied with this response, and should be made as soon as practicable. We will respond as soon as the review has been concluded.

If you are not satisfied with the result of the review, you then have the right to appeal to the Information Commissioner for a decision on; 1. Whether we have responded to your request for information in accordance with Part 2 of the Freedom of Information Act 2015; or 2. Whether we are justified in refusing to give you the information requested.
In response to an application for review, the Information Commissioner may, at any time, attempt to resolve a matter by negotiation, conciliation, mediation or another form of alternative dispute resolution and will have regard to any outcome of this in making any subsequent decision. More detailed information on your right to a review can be found on the Information Commissioner’s website at www.inforights.im. Should you have any queries concerning this letter, please do not hesitate to contact me. Further information about freedom of information requests can be found at www.gov.im/foi.

I will now close your request as of this date.###