Guernsey States’ Compromise Agreements Total Nearly £1 Million

A Freedom of Information (FOI) request has brought to light that the States of Guernsey has disbursed nearly £1 million in compromise agreements to employees who have departed since the beginning of 2023. A compromise agreement is defined as a legally binding contract between an employer and an employee, intended to resolve potential claims through financial compensation. Since 2023, a total of 31 individuals have exited their roles under compromise agreements. This includes 17 departures in 2023, which amounted to £455,961.73, and 14 so far in 2024, totaling £378,546.19. Over the period from 2012 to 2022, 165 States employees concluded their employment with a compromise agreement, incurring a total expenditure of £5,095,916. In reply to two FOI requests, the States of Guernsey offered a justification for employing these agreements. “They can be a useful tool to enable an employer and its employee to bring an employment relationship to an end,” the statement indicated. It further explained, “Whilst the States of Guernsey is a good and fair employer there are occasions where the best solution for the employer and employee is to end the relationship and a Compromise Agreement remains an appropriate mechanism to achieve this.” The FOI request had sought a breakdown of these agreements by individual committee; however, the Policy and Resources Committee declared that this was not feasible due to privacy concerns.