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Former Employees (Compensation)

Volume 451: debated on Wednesday 8 November 2006

To ask the Secretary of State for Trade and Industry how much his Department has paid in compensation to former employees in each of the last 10 years; what the reason for compensation was in each case; what his policy is towards compensating former employees; and if he will make a statement. (99411)

The Department of Trade and Industry paid out a total of £11,951.67 in compensation to former employees in the financial year 2005-06. To provide information for earlier years would incur disproportionate cost.

The £11,951.67 compensation paid in 2005-06 comprises the following categories of payments:

16 were DTI Employment Tribunal Service ex-gratia payments made to parties in an Employment Tribunal;

Eight were compensation payments for financial loss or poor service in DTI pension administration to former employees;

Two were for cases of alleged race discrimination which were withdrawn following compensation payments.

The policy towards compensating former civil service employees is laid out in ‘Government Accounting’ which all Departments apply. DTI follows Government Accounting rules in considering a compensation payment to a former employee.