£587,100 cost of borough job losses (From Basingstoke Gazette)
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£587,100 cost of borough job losses
7:00am Monday 10th September 2012 in Local By Emily Roberts, Chief Reporter
BASINGSTOKE and Deane Borough Council has spent more than half a million pounds in the last year on redundancy and other payments to departing staff.
Figures published in a report for the human resources committee meeting on September 10 reveal that the council forked out £587,100 for redundancies, early retirement and ‘compromise agreements’ where an employee is paid in return for agreeing not to pursue any claim or grievance at a tribunal.
The breakdown shows that £412,400 related to redundancies, £139,500 was paid to pension funds for early retirement as a result of redundancy, and £35,200 for compromise agreements.
The annual statement is presented to the committee to fulfil audit recommendations and good practice.
The report said the costs of redundancies and early retirements will be paid back in efficiency savings within five years, although this is normally within less than two years. It said the forecast for ongoing annual savings is £2.4million.
From 2011 to 2012, the council terminated the contracts of 13 people as part of an efficiency and savings review, transformation restructure and for end of fixed-term contracts.
