Settling claims - Compromise Agreements

Network Rail Pays Off Staff in Sex and Race Discrimination Cases

Network Rail is a publicly-funded firm which owns Britain’s rail system. It is believed to have made pay-offs to a number of members of staff who made claims, including race and sex discrimination, against one of the firm’s senior executives.

Vicky Lydford, who worked in human resources at Network Rail, claimed she was the victim of sex and race discrimination by the senior executive because she had challenged his “sexist language and behaviour in the office.” Her case was due to be heard by an employment tribunal last year but settlement was reached on the day the hearing was due to start. It is reported that Mrs Lydford received a payment of around £500,000.00 in order to settle her claim.

However, employees have signed compromise agreements containing confidentiality clauses that prevent them from speaking publicly about why they have left the company and the payments they have received. Confidentiality clauses are common features of compromise agreements, which are used as a way of making a payment to a departing employee in return for the employee's agreement to waive any claims they may have against their employer.

I can see why Network Rail would want to keep the amount of money paid to Ms Lydford and others confidential.  On the other hand, it could be argued that it is in the public interest to allow the employees to speak about the discrimination they endured whilst working at this publicly-funded company.  What is your view of Network Rail’s use of public money to ensure that allegations made by employees are not exposed in full?