Isle of Man government settlement pay policy to be reviewed

Kate Lord-Brennan said guidance would be issued on the use of settlements

The policy of awarding pay outs to departing public sector workers on the Isle of Man is being reviewed, the Cabinet Office Minister has said.

It comes after it was revealed £1.9m was paid out in the past year to those leaving government jobs for reasons including redundancy and severance.

The figures also showed a total of more than £9.8m had been paid over the past five years.

Kate Lord-Brennan said the sums involved were a "matter of concern".

The figures, which date back to 2017, were released in response to a Freedom of Information request.

'Exceptional circumstances'

The agreements, which are brokered by an industrial relations officer, typically include a payment for loss of employment along with payment for accrued holiday and a notice period.

Ms Lord-Brennan said: "In any large organisation, redundancy, performance or disciplinary issues will inevitably mean that employers seek to terminate the employment relationship.

"In some cases this can, and may need, to be achieved by way of a conciliated settlement agreement, meaning that some employees exit the organisation with some financial recompense in order to end the employment and to avoid costly legal claims.

However, the use of the settlements and the figures involved "has been a matter of concern" and a review was being carried out to ensure they were only used in "exceptional circumstances", she said.

It was important to ensure they were "not utilised where the correct response is to instigate a formal performance management process", she said.

The Public Services Commission was working on a policy which will provide guidance about the use and approval process required relating to the agreements, she added.

Several senior officers left the government last year after an industrial tribunal ruled a top medic was unfairly sacked for whistleblowing, which triggered a shake-up of the civil service.