The payment was unearthed through an officer decision record signed off by the councils Managing Director.
11th Jan 2025
Hartlepool Borough Council has reportedly approved a settlement agreement with an unnamed employee reportedly on long term sick leave, in a move which is said to cost local tax payers at least £20,000.
Denise McGuckin, the council Managing Director reportedly approved the decision as part of a severance package to end the employees contract with the organisation back in December 2024 & sheds light on how public funds at one of Teessides most clandestine organisations is being managed, raising questions about transparency and financial responsibility within the council.
What’s the Decision About?
The settlement agreement was reportedly said to have been part of a policy for severance payments for employees with a financial value of between £20,000 and £100,000.
The employee had reportedly been on long term sickness absence for over a year....
Its claimed such payments must be signed off by the councils Head of Paid Service, in consultation with officers such as the Leader of the Council, the Chair of the Finance and Policy, the Councils Section 151 Officer, and the Monitoring Officer. According to the decision record, the settlement agreement was reached as an alternative to continued long-term sickness absence, which could have progressed to an ill-health capability dismissal.
Whilst many could see it as a practical solution to end a long standing employee dispute, it's likely to leave many locals wondering: just how often are such settlements being made, and at what cost to the taxpayer?
The report did indicate other options available to the local council, such as pursuing an ill-health dismissal, but this was rejected. Whilst ill-health dismissals can be lengthy and legally complex, critics argue that paying out settlements risks creating a precedent for costly severance packages, potentially impacting the council’s so called stretched budget.
A number of these payments have been made over the years...
Its not the first time Hartlepool Borough Councils come under the microscope over its 'secretive' severance payments policies, in 2022, its claimed a number of settlement agreements were made by the local council following concerns that a number of employees were getting set to undertake a collective employment tribunal claim against the local council. It led to the councils legal team advising the councils top officers to settle the claims out of court for numerous undisclosed sums, with the most recent payment said to come at a time when local tax payers are set to be told they're to stump up hundreds of pounds more in council taxes in April.
The apparent 'secrecy' over the payments handed out in severance payments has also led to concerns that Hartlepool Borough Council is attempting to shield locals from the actual costs local tax payers are being asked to shoulder in these payments. Projects such as, Shades, the Whitby Street Substance Misuse Treatment Centre and the council’s handling of regeneration projects involving public funds has already raised concerns in the past about alleged financial mismanagement. Adding severance payments to the mix only amplifies these concerns.
The settlement decision highlights the delicate balancing act between resolving employment disputes and safeguarding public funds. Whilst many will claim it would have been the most practical option in this case, many local residents want assurances that every penny of their hard-earned money is spent wisely & not being used for costly golden goodbyes....
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