Cynon Valley

Concern over use of ‘gagging clauses’ by local authoritie­s

- STAFF REPORTER Reporter newsdesk@walesonlin­e.co.uk

CONCERNS have been raised about the use of controvers­ial “gagging clauses” by local authoritie­s in Wales.

“Non-disclosure agreements” (NDAs) are signed by departing staff members in return for severance payments.

They oblige both the employer and the former worker to stay silent about anything that may reveal details about why the employment came to an end.

Such agreements haven’t been used by the Welsh Government for at least a decade, but most Welsh councils continue to use them.

Caerphilly Independen­t councillor Nigel Dix, whose authority uses NDAs more frequently than any other in Wales, said he was extremely concerned by what he had learned.

A series of Freedom of Informatio­n requests had shown that a total of 597 “settlement agreements” were signed by councils in Wales between 2016 and 2019.

Most of the settlement agreements contained non-disclosure clauses.

The total paid out to leaving employees amounted to £9,576,274 – an average severance payment of £16,041.

In Caerphilly, of the 199 settlement agreements, 124 contained confidenti­ality clauses.

Cllr Dix said: “I am extremely concerned about the high incidence of NDAs, especially in Caerphilly, where we have had a major pay scandal that has cost the council millions of pounds.

“The problem with NDAs is that they can be used to cover up misconduct by the employee or by the local authority. They are wholly out of order and should not be happening.

“As things stand they are not reported to elected councillor­s and we have no opportunit­y to ask questions about them.

“Having officers making decisions about other officers and their payoffs is not a healthy situation in my view. I think it should end. There needs to be much more openness.

“I think that NDAs should only be entered into in exceptiona­l circumstan­ces. They should be overseen by councillor­s, who should make the decisions.”

The existence of NDAs has long been a bone of contention in the Welsh public sector.

In 2003 Sir John Bourn, then the Auditor General for Wales, reported on a scandal involving irregular expenditur­e by the short-lived education quango ELWa.

In his report, Sir John expressed concern that confidenti­ality clauses had been imposed on 104 employers made redundant, contrary to the then Assembly Government’s policy.

Responding to the figures referred to by Cllr Dix, a Welsh Government spokeswoma­n said: “The use of NDAs by local authoritie­s is a matter for those authoritie­s.

“No NDAs have been used by the Welsh Government in relation to departing staff over the last 10 years.”

A Caerphilly council spokesman said: “These types of settlement agreements are common practice and are used by many employers to facilitate a mutual terminatio­n between an employer and employee.

“Latest figures show that the number of settlement agreements issued by the council have reduced significan­tly over the last three years when compared with the historic data provided by Cllr Dix.

“It is also important to note that they are only used when a robust business case has been completed to demonstrat­e their requiremen­t and are, by their nature, designed to minimise the financial impact on the council. We will continue to carefully monitor the use of such agreements going forward.”

A spokeswoma­n for the Welsh Local Government Associatio­n said: “Individual councils will take their own decision to introduce NDAs where there is a clear business case to do so and in line with relevant employment law.

“The WLGA doesn’t provide guidance to council on these types of agreements as it is a matter for individual councils to decide and we do not collate the data.

“Such agreements are often used by employers to facilitate a mutual terminatio­n between an employer and employee.”

 ?? ?? Caerphilly Independen­t councillor Nigel Dix
Caerphilly Independen­t councillor Nigel Dix

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