Law review finds ways to end golden handshakes

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The review into compromise agreements, published on Wednesday by Karen McConnell, the Comptroller and Auditor General, said the States should prioritise ‘reviewing contractual terms for senior staff when opportunities arise, taking into account the need for reform’.

A compromise agreement is an agreement under which the employee receives a negotiated financial sum, in exchange for agreeing that he or she will have no claim against the employer.

Ms McConnell also advised ‘developing and applying clear consistent documentation standards to support decisions to use compromise agreements’ and she said that she had found that the States had taken steps to implement some, but not all, of the recommendations that were originally put forward about compromise agreements by Chris Swinson, the former C&AG in 2012.

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