Out-of-contract payment system is time-consuming and costly, says NHF
Housing Corporation regulations regarding staff settlements could be relaxed after a groundswell of objection to the rules.

The corporation's assistant chief executive for regulation and best value, Bob Dinwiddy, has agreed to meet with National Housing Federation deputy chief executive James Tickell to talk about how the situation could be improved.

Under the current system, registered social landlords must consult a lawyer and obtain Housing Corporation approval for out-of-contract payments – tribunal claims, settlements agreed with industrial conciliation service Acas or payments agreed between employer and employee, for instance.

Personnel heads from a dozen associations and law firms have written to Tickell to say this process is costly and time-consuming and are demanding the rules be changed.

Previously, there had been angry protests from the sector when the corporation recently restated the validity of the long-standing regulations. It fears allowing associations greater freedom could result in excessive payments to former employees, such as departing chief executives.

Tickell has written to Dinwiddy proposing that settlements of less than three months' salary or decisions made by Acas should not have to be referred to the corporation.

His letter also said: "The unavoidable result of the guidance is that housing associations are unable to take a sensible and pragmatic view and settle tribunal actions quickly and economically for a relatively small sum through Acas. Following the procedure causes extra costs, lost opportunities to settle, and delays."

Dinwiddy said the corporation would "have a serious think" about what to do.

He said Tickell's proposals would require a consultation process but that the corporation had other options, such as improving the turnaround time for cases under the present system, which would not need consultation.

Sally Jacobson, group director of human resources at London & Quadrant Housing Trust, supported Tickell's proposals. She said the move would not lead to large payoffs.

She said: "I can understand the corporation's concern and why they re-emphasised schedule one; but they may not have realised that when we go though Acas we get a sensible settlement."

Last year, Housing Corporation chair Baroness Dean slammed excessive payoffs after a series of controversial severance deals. (HT 17 January 2002).

Source

Housing Today