Issue - meetings

This report gives an update on the Council’s position in relation to offers of compensation to employees.

RESOLVED: (i)         That the approach outlined in the report, to make offers of compensation in full and final settlement of the Council’s liabilities in respect of historical equal pay issues, be endorsed.

                        (ii)        That the use of the existing financial reserves of £1.59m that have been set aside to address this issue be authorised and, if this amount is exceeded, that any remaining compensation be funded from the Council’s general reserve.

REASON:      In order to address this important issue and minimise the risk to the Council.

Members considered a report which provided an update on the Council’s position in relation to offers of compensation to employees who could potentially make claims against the Council under equal pay legislation.

The current job evaluation exercise under the Single Status Agreement would only address inequalities from the date of implementation of a new pay system.  There was therefore a need to address historical inequalities and reduce potential liabilities and litigation in this area.  After careful consideration, Officers had concluded that it was essential to take action to reduce the Council’s risk in this area by proposing a compromise agreement to settle potential equal pay claims.

Proposed levels of compensation had been discussed with trades unions and a list drawn up of employees who should be offered compensation.  These employees would be notified by letter of the amount they would receive if they chose to accept the offer.  Further information would be available via a helpline and a series of ‘road shows’. 

RESOLVED: (i)         That the approach outlined in the report, to make offers of compensation in full and final settlement of the Council’s liabilities in respect of historical equal pay issues, be endorsed.

                        (ii)        That the use of the existing financial reserves of £1.59m that have been set aside to address this issue be authorised and, if this amount is exceeded, that any remaining compensation be funded from the Council’s general reserve.

REASON:      In order to address this important issue and minimise the risk to the Council.