Agenda item
Item of Urgent Business - Proposed Redundancy Termination Payment
- Meeting of Council, Tuesday, 5th October, 2021 7.00 pm (Item CO54)
- View the reasons why item CO54 is restricted
Minutes:
At its extraordinary meeting on 6 July 2021, the Council had considered options for collaborative working with Waverley Borough Council and had resolved to pursue the option of creating a single management team with Waverley Borough Council, comprised of statutory officers (Head of Paid Service; Chief Finance Officer; Monitoring Officer), Directors and Heads of Service. The two councils would share a management structure, which would be responsible for recommending any further collaboration, service-by-service.
At the Council meeting on 28 July 2021, Council had agreed that the redundancy and any settlement costs incurred as a result of the recruitment of a Joint Chief Executive shall be shared equally between the councils and that any pension strain costs would remain the responsibility of the employing authority of the affected officer.
Consultation with both affected employees had taken place between 10 August 2021 and 9 September 2021 and they were aware of the proposed redundancies of their posts. Feedback and representations received during the consultation process had been reviewed by the Joint Appointments Committee at its meeting on 22 September 2021. Following this review, any minor amendments that had been made to the proposals had been confirmed to the employees at their end of consultation meetings held on 28 September 2021.
Expressions of Interest had been invited for the Joint Chief Executive post from both affected employees. The Council’s Managing Director had notified the Leader of the Council that he did not wish to be considered for the role and had requested voluntary compulsory redundancy. The report to the Council had sought approval to make a termination payment to James Whiteman in line with the Council’s Early Termination of Employment Discretionary Compensation Policy.
The Council had the option of setting a policy where it could use new capital receipts to fund revenue expenditure that would generate ongoing savings. Officers were seeking to use this option to finance the implementation costs of the Guildford and Waverley collaboration project and in particular the redundancy and pension strain costs. A strategy on the Flexible use of Capital Receipts was appended to the report, which the Council was asked to approve.
Whilst suitable receipts were anticipated during 2021-22, there was a risk that the receipts might be delayed. If sufficient capital receipts were not received during the financial year 2021-22, officers had sought approval to finance the redundancy costs from the invest to save reserve.
The Council considered a report on this matter and was invited to consider the proposed redundancy termination payment which exceeded the £95,000 threshold referred to in the Council’s adopted Pay Policy Statement for 2021-22.
The report had also been considered by the Employment Committee on 4 October 2021. The Committee had endorsed the proposed redundancy termination payment and had recommended the payment to Council for approval.
The Council noted the correction to paragraph 3.5 of the report in respect of the pay-back period, which should have stated 4.3, rather than 0.9, years.
Upon the motion of the Leader of the Council, Councillor Joss Bigmore, seconded by the Deputy Leader of the Council, Councillor Jan Harwood, the Council
RESOLVED:
(1) That the Council approves the recommendation of the Employment Committee to make a termination payment associated with the voluntary compulsory redundancy of James Whiteman, Managing Director (post number PO1721) of the sum set out in the table in paragraph 3.1 of the report submitted to the Council.
(2) That the Council approves the Flexible Use of Capital Receipts Strategy as set out in Appendix 4 to the report so that the implementation costs outlined in paragraph 3.4 of the report can be financed from the flexible use of capital receipts should they be incurred.
(3) That in the event that sufficient receipts are not received during 2021-22, Council approves the use of the invest to save reserve to finance the implementation costs outlined in paragraph 3.4 of the report should they be incurred.
Reason:
To enable the payment of the full entitlement of termination pay to the employee whose post would be made redundant.
A recorded vote on this matter was requested by Councillor Keith Witham, supported by four other councillors. The motion was carried with forty-one councillors voting in favour, one against, and three abstentions, as follows:
For |
Against |
Abstain |
Councillor Tim Anderson Councillor Jon Askew Councillor Joss Bigmore Councillor David Bilbé Councillor Richard Billington Councillor Chris Blow The Deputy Mayor, Councillor Dennis Booth Councillor Ruth Brothwell Councillor Colin Cross Councillor Graham Eyre Councillor Andrew Gomm Councillor Angela Goodwin Councillor David Goodwin Councillor Angela Gunning Councillor Gillian Harwood Councillor Jan Harwood Councillor Tom Hunt Councillor Diana Jones Councillor Steven Lee Councillor Nigel Manning Councillor Ted Mayne Councillor Julia McShane Councillor Ann McShee Councillor Bob McShee Councillor Masuk Miah Councillor Ramsey Nagaty Councillor George Potter Councillor Jo Randall Councillor John Redpath Councillor Maddy Redpath Councillor John Rigg Councillor Tony Rooth Councillor Will Salmon Councillor Deborah Seabrook Councillor Pauline Searle Councillor Paul Spooner Councillor James Steel Councillor Cait Taylor Councillor James Walsh Councillor Fiona White Councillor Catherine Young |
Councillor Keith Witham
|
Councillor Guida Esteves The Mayor, Councillor Marsha Moseley Councillor Susan Parker
|
The Council also considered an urgent related matter that had arisen in respect of the Council’s membership on the Joint Appointments Committee (JAC) which was overseeing the recruitment process for the appointment by this Council and Waverley Borough Council of a Joint Chief Executive.
Councillor Paul Spooner had withdrawn from membership of the JAC, which left a vacancy that would otherwise fall to the Conservative group to fill. However, Councillor Spooner had also indicated that no other member of his group wished to be considered for appointment to the JAC to replace him.
As there was now a vacancy, it was up to full Council to appoint another councillor to the JAC.
Upon the motion of the Leader of the Council, Councillor Joss Bigmore, seconded by Councillor Catherine Young, the Council
RESOLVED: That Councillor Ramsey Nagaty be appointed to the Joint Appointments Committee for the remainder of the 2021-22 municipal year.
Reason:
To ensure that Guildford continued to be represented by three members on the JAC
Note: By reason of the special circumstances described below, the Mayor considered that this item should be dealt with at this meeting as a matter of urgency pursuant to Section 100B 4 (b) of the Local Government Act 1972.
Special Circumstances: The agenda for this Council meeting had to be published on 27 September 2021, which was before the deadline for receipt of formal expressions of interest from affected employees in respect of the new Joint Chief Executive role, which was 29 September 2021.