Employment settlement considerations: FOI release

Information requested

1. Please provide a breakdown, by year, of how many employment settlements the government has had to consider since 2017. By employment settlement, I am referring to what is described as a "potential settlement" or "potential settlement payment", or "potential settlement of claim" or substantively similar wording as disclosed as part of FOI ref 202200314542.
2. How much, broken down by year since 2017, has the Scottish Government paid out in settlements of this type? Please provide an overall figure, alongside a breakdown of each settlement cost.
3. How many settlement claims are ongoing/outstanding at the date of this FOI request?

Response

Definitions / Scope of Request

You refer to FOI ref 202200314542 and the categories of information provided in this response as a guide to the information you are seeking.

We note that FOI 202200314542 pertains to "contingent financial liabilities" held by SG at the time of response to FOI202200314542. There are a number of different types of contingent liability held and managed by SG in relation to employment matters. Not all of these types of liability result in settlement, nor in a settlement agreement payment being made.

I have interpreted the phrase “By employment settlement, I am referring to what is described as a "potential settlement" or "potential settlement payment", or "potential settlement of claim" or substantively similar wording as disclosed as part of FOI ref 202200314542.” in your question 1 ’ to mean potential employment settlements pertaining to SG employees which would fall within the definition set out in the Scottish Public Finance Manual (SPFM); that is situations where settlement agreements (including COT3) have been identified as an option to resolve an employment dispute, whether or not employment continues.

Whilst the response to FOI ref 202200314542 included data held on potential situations where an employee may be considered eligible to receive payment in connection with dismissal on efficiency grounds as provided for in sections 6.3 and 11.4 of the Civil Service Management Code [link: https://www.gov.uk/government/publications/civil-servants-terms-and-conditions] and potential payments identified in respect of actual and potential litigation including, for example, for personal injury or other claims. This response is therefore restricted to our interpretation of potential and actual employment settlement agreements as defined in the SPFM.

Data in relation to settlement agreements in the Scottish Government (SG) and Public bodies, NHS Scotland and Scottish Funding Council overseen bodies is held from the financial year 2014 / 2015 and, since then, has been provided to parliament annually. The SG Annual Report on the Use of Settlement Agreements (annual report) is available on the Scottish Parliament website. Annex A of the annual report lists those public bodies which it covers. The annual report provides an anonymised breakdown of all settlement agreements entered into in cost order thereby respecting the confidentiality of settlement agreements and an individual’s general entitlement to privacy.

Taking the aforementioned into consideration, the responses to question 1-3 reflect the above rationale.

1. Please provide a breakdown, by year, of how many employment settlements the government has had to consider since 2017. By employment settlement, I am referring to what is described as a "potential settlement" or "potential settlement payment", or "potential settlement of claim" or substantively similar wording as disclosed as part of FOI ref 202200314542.
   While it is our aim to provide information wherever possible, we are unable to provide all of the information you have requested in relation to part 1 of your request. This is because SG as employer does not hold historic records of potential settlement numbers and an exemption under s.17(1) of FOI(S)A is therefore claimed in respect of this aspect of your request.
   
   SG holds information in relation to contingent liabilities for live cases that may result in settlement agreement.
   
   As at the date of your request (28 November), the number of live cases was 6.
2. How much, broken down by year since 2017, has the Scottish Government paid out in settlements of this type? Please provide an overall figure, alongside a breakdown of each settlement cost.
   Data in relation to settlement agreements in the Scottish Government (SG) and Public bodies, NHS Scotland and Scottish Funding Council overseen bodies is held from the financial year 2014 / 2015 and, since then, has been provided to parliament annually. The SG Annual Report on the Use of Settlement Agreements (annual report) is available on the Scottish Parliament website. Annex A of the annual report lists those public bodies which it covers.
   
   The annual report provides an anonymised breakdown of all settlement agreements entered into in cost order thereby respecting the confidentiality of settlement agreements and an individual’s general entitlement to privacy.
   
   A breakdown per year on the costs associated with settlement agreement payments is as follows:
   
   Data on employment settlement agreements where the SG is the employer. The table below outlines the total number of settlement agreements entered into by SG as an employer for each year from 2014 / 2015 to 2021 / 2022 and the total cost.

FINANCIAL YEAR	CONTRACTUAL TOTAL	NONCONTRACTUAL PAYMENT	LEGAL ADVICE	TOTAL COST
2017/18	0.00	7,500.00	0.00	7,500.00
2017/18	16,773.00	40,382.00	350.00	57,505.00
2017/18	3,797.12	13,000.00	350.00	17,147.12
2017/18	15,495.79	17,800.00	350.00	33,645.79
2017/18	0.00	3,360.00	0.00	3,360.00
2017/18	0.00	8,730.00	0.00	8,730.00
2018/19	0.00	5,000.00	0.00	5,000.00
2019/20	5,569.67	930.33	0.00	6,500.00
2019/20	3,567.07	22,620.50	350.00	26,537.57
2020/21	5,280.84	22,500.00	500.00	28,280.84
2020/21	0.00	2,609.53	350.00	2,959.53
2020/21	2,839.05	8,750.00	0.00	11,589.05
2020/21	0.00	7,500.00	350.00	7,850.00
2020/21	0.00	20,000.00	0.00	20,000.00
2021/22	0.00	10,338.98	420.00	10,758.98
			TOTAL	247,363.88

3. How many settlement claims are ongoing/outstanding at the date of this FOI request?
   As at the date of your request (28 November), the number of live cases was 6.

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