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Confidentiality clauses in public sector payoffs 'must not stop whistleblowers' Confidentiality clauses in public sector payoffs 'must not stop whistleblowers'
(4 months later)
NHS staff and civil servants who refuse to sign gagging clauses when they leave work are putting their careers at risk, an investigation by the government's independent watchdog has concluded.NHS staff and civil servants who refuse to sign gagging clauses when they leave work are putting their careers at risk, an investigation by the government's independent watchdog has concluded.
The National Audit Office's report is published as ministers come under increasing pressure to drop all gagging clauses from severance agreements.The National Audit Office's report is published as ministers come under increasing pressure to drop all gagging clauses from severance agreements.
There are claims that health service executives have been stopped from speaking out about poor care in hospitals.There are claims that health service executives have been stopped from speaking out about poor care in hospitals.
The auditors stress there are legitimate reasons for such deals, including protecting intellectual property and resolving grievances. But the report says those employees who thought to refuse to sign a gagging clause could well damage their prospects.The auditors stress there are legitimate reasons for such deals, including protecting intellectual property and resolving grievances. But the report says those employees who thought to refuse to sign a gagging clause could well damage their prospects.
"If an individual is unfairly dismissed and turns down a compromise agreement, the lack of a reference for that individual might block alternative employment in his or her profession," the auditors say."If an individual is unfairly dismissed and turns down a compromise agreement, the lack of a reference for that individual might block alternative employment in his or her profession," the auditors say.
The report notes, however, that some former staff who accepted compromise agreements felt gagged.The report notes, however, that some former staff who accepted compromise agreements felt gagged.
"The individuals we spoke to felt that it was not generally made clear that confidentiality clauses do not prevent employees from raising legitimate public interest concerns," the report says."The individuals we spoke to felt that it was not generally made clear that confidentiality clauses do not prevent employees from raising legitimate public interest concerns," the report says.
The NAO investigation also finds the government has not kept comprehensive records of the cost of compromise deals signed by departing staff. The office called for ministers to "get a grip" on the problem.The NAO investigation also finds the government has not kept comprehensive records of the cost of compromise deals signed by departing staff. The office called for ministers to "get a grip" on the problem.
Amyas Morse, head of the NAO, said the lack of transparency, consistency and accountability surrounding the agreements was unacceptable.Amyas Morse, head of the NAO, said the lack of transparency, consistency and accountability surrounding the agreements was unacceptable.
He said: "With the public purse under sustained pressure and services increasingly delivered at arm's length, it is important compromise agreements do not leave staff feeling gagged or reward the failure of an employee or an organisation.He said: "With the public purse under sustained pressure and services increasingly delivered at arm's length, it is important compromise agreements do not leave staff feeling gagged or reward the failure of an employee or an organisation.
"The centre of government should get a grip on the use of compromise agreements in the public sector.""The centre of government should get a grip on the use of compromise agreements in the public sector."
Incomplete records uncovered by auditors show that the Treasury authorised payments of at least £28.4m to 1,053 staff leaving the public sector in the last three years. Nearly all of these payments included confidentiality clauses, say the auditors.Incomplete records uncovered by auditors show that the Treasury authorised payments of at least £28.4m to 1,053 staff leaving the public sector in the last three years. Nearly all of these payments included confidentiality clauses, say the auditors.
The report says the Treasury approved £11.1m in special severance payments by the health department in the three years to March 2013. The top payout was £266,000.The report says the Treasury approved £11.1m in special severance payments by the health department in the three years to March 2013. The top payout was £266,000.
One Ministry of Justice deal was recorded as £250,000, while the top payouts at the Home Office and Department for Education were for £225,000.One Ministry of Justice deal was recorded as £250,000, while the top payouts at the Home Office and Department for Education were for £225,000.
Neither the Cabinet Office nor the Treasury provide formal guidance to departments on the use of compromise agreements.Neither the Cabinet Office nor the Treasury provide formal guidance to departments on the use of compromise agreements.
The report argues that the government should collate a total figure from all departments of compromise agreements. The Treasury has indicated it does not believe there is any need to collect data on the deals centrally, according to the report.The report argues that the government should collate a total figure from all departments of compromise agreements. The Treasury has indicated it does not believe there is any need to collect data on the deals centrally, according to the report.
Margaret Hodge, chair of the public accounts committee,, which works closely with the NAO, said the government had to make it clear that compromise deals should not stop "legitimate" whistleblowers from speaking out.Margaret Hodge, chair of the public accounts committee,, which works closely with the NAO, said the government had to make it clear that compromise deals should not stop "legitimate" whistleblowers from speaking out.
"It is simply unacceptable for people who speak up about failures in service delivery to feel like they have been silenced in this way," she said."It is simply unacceptable for people who speak up about failures in service delivery to feel like they have been silenced in this way," she said.
She also called for the government to open all its agreements to public scrutiny. "It is staggering that no one has any idea how many compromise agreements are used and whether, overall, they are value for money.She also called for the government to open all its agreements to public scrutiny. "It is staggering that no one has any idea how many compromise agreements are used and whether, overall, they are value for money.
"The Treasury looks at cases individually, so it can't say where most applications come from, what the total sums involved are, or how much of the amounts it approves are paid by departments. Even within departments central records are rare. This total absence of oversight means the figures approved may be just the tip of the iceberg.""The Treasury looks at cases individually, so it can't say where most applications come from, what the total sums involved are, or how much of the amounts it approves are paid by departments. Even within departments central records are rare. This total absence of oversight means the figures approved may be just the tip of the iceberg."
A government spokesperson said the decision on whether confidentiality clauses were included in settlements was a matter for individual departments. "As the NAO notes, confidentiality clauses can have legitimate benefits – the government's legal advisers provide guidance on their use and we continue to look at ways to strengthen this central guidance," the spokesperson said.A government spokesperson said the decision on whether confidentiality clauses were included in settlements was a matter for individual departments. "As the NAO notes, confidentiality clauses can have legitimate benefits – the government's legal advisers provide guidance on their use and we continue to look at ways to strengthen this central guidance," the spokesperson said.
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