The University of Sheffield has
spent over £1.8 million taking out controversial ‘gagging orders’ on
former staff members in the last five years.
Compromise agreements with confidentiality
clauses, known informally as ‘gagging orders’, have been issued to
members of staff leaving employment for reasons other than early
retirement. They are now known as settlement agreements following the
Enterprise and Regulatory Reform Act 2013.
The agreements are used when the University
is in dispute with a staff member and are made through a voluntary
process where both the University and the employee are legally
represented. But unions fear that employees may sign compromise
agreements because they fear the stress associated with taking legal
action or remaining in work.
The Trades Union Congress (TUC) said: “We
are seriously concerned that the new legislative provisions on the
admissibility of settlement offers and discussions in unfair dismissal
cases will send a signal to employers that they are free to sack staff
for arbitrary reasons without needing to follow a fair disciplinary
procedure.
“Whilst employees will have a theoretical
right to turn the employer’s offer down, many will consider they have no
genuine choice other than to accept the sum of money and leave their
job. Many employees will accept the offer simply because they assume it
is a foregone conclusion they will be dismissed if they do not.
“Others will fear that they will be bullied
or victimised if they remain in the job. The provisions are therefore
open to abuse by employers and could have a detrimental effect on wider
employment relations.”
The University said that “the decision to
compromise is made taking into consideration factors including the
beneficial impact to all parties through timely resolution to the
dispute, the commercial impact of resolution, and the effective
management of personal and or organisational risk.”
A former University employee who signed a compromise agreement told Forge Press:
“Such is the stress of taking legal action against powerful
organisations that many employees choose to sign a compromise agreement
containing a gagging clause rather than pursue legal action and put
their health in jeopardy.”
Cllr Shaffaq Mohammed, leader of the
Liberal Democrat Group on Sheffield city council, described the figures
as “worrying”, going on to say: “When such large sums are being spent on
these agreements students have every right to know why this money isn’t
being invested in university services instead. As one of the largest
and most respected institutions in our city, the University of
Sheffield should be setting an example to other employers.”
Compromise agreements have been a
contentious issue in the area recently, sparking outrage from local
people when it was discovered that Sheffield city council had spent
almost £200,000 on the orders since 2011.
Sheffield city council spent £28,000 on
compromise agreements in 2011 and £162,530 in the 2012-2013 period, with
many of their compromise agreements including the controversial
confidentiality clauses. But the University of Sheffield’s spend dwarfs
this – with £196,907 spent on gagging orders in 2011 alone, more than
seven times the amount spent by the council in that year, despite having
only 6,031 employees compared to the council’s 18,000 plus.
The number of agreements made and the costs
incurred are subject to annual scrutiny by the University’s senior
remuneration committee, made up of the vice-chancellor and
non-University staff.
The University has racked up almost £2 million worth of the controversial clauses in the past five years, peaking in 2009 when 24 agreements were made at a cost of £549,589.
In total, the University has made 102
compromise agreements with confidentiality clauses since 2008, resulting
in a total spend of £1,835,498.
These figures also tower over the
“concerning” spend of almost half a million pounds at the University of
York. When the University of York Students’ Union officers found out
about the £479,464 spend on confidentiality clauses since 2008, the
spending was criticised as “careless”.
Kallum Taylor, York Students’ Union
president, told York student paper Nouse: “These numbers are obviously
concerning. Obviously we don’t know the ins and outs, but 80k a year
could go a hell of a long way elsewhere for students here. Students are
now paying a fortune, and their financial stake in the University has
increased dramatically. Scrutiny on spending should be higher than ever,
and this type of business shouldn’t be carelessly accepted as a norm.”
University of Sheffield Students’ Union president Ally Buckle declined to comment on the figures. A human resources spokesperson for the
University said: “The University of Sheffield has a well deserved
reputation as an excellent employer committed to developing a culture of
excellence, collaboration, innovation, commitment and respect.
“The University is proactive in ensuring
that it promotes and develops its staff capability, and considers a
range of employment options to address any shortcomings which, when the
circumstances warrant it, include compromise agreements. We take care to
ensure this approach is only used voluntarily, and in circumstances
where both parties have agreed it’s the best course of action,
frequently in discussion with trade unions.
“The number of cases and University of Sheffield spending on such
agreements is low when compared to other sectors. Over the past six
years, spending has been at an average of around £18,000 per case,
representing a tiny fraction of our total £1.1bn staff budget over the
same six years.”