BBC Settlement Agreements: £2.8 Million of Cash Sweeteners for Ex-Employees

In the last three years the BBC paid £2.8 million of cash sweeteners to ex-employees.

The eye-watering amount, which is the equivalent of 16,500 TV licences, was uncovered by a freedom of information request by TV Licensing Blog.

TV Licensing Blog initially asked the BBC to provide policy documentation relating to its use of settlement agreements and non-disclosure agreements for the termination of employment. 

In its initial response dated 15th March 2024 (read here), the BBC said that no such policies existed, but confirmed that the use of so-called "gagging clauses" - conditions preventing an employee from making disparaging or derogatory statements about the BBC - ceased in 2013.

TV Licensing Blog also sought information about the number of employees whose employment was terminated subject to a settlement agreement; plus the total amounts those employees received in settlement. We asked for this information as a yearly breakdown since 2021.

The BBC replied that although it held the relevant information, retrieving it would require a costly manual search through employment records. The BBC suggested we resubmitted our request with a slightly narrower focus.

In its revised response dated 17th April 2024 (read here), the BBC confirmed that in the last three financial years (2020/21, 2021/22, 2022/23) it had reached 66 settlement agreements, at a total cost of £2,767,130. This equates to an average settlement payment of £41,926.

The BBC confirmed that the maximum payment has been capped at £150,000 since 2013, but that does not include any pay in lieu of untaken leave.

The BBC said that its interpretation of "settlement agreement" included COT3s.

It added: "A settlement agreement is an agreement meeting certain statutory conditions in which an employee agrees not to pursue certain employment tribunal claims. COT3s are settlements facilitated by the conciliation service, Acas."

The BBC attached a number of conditions to the data provided:

• It only includes payments made in relation to UK matters - e.g. it does not include payments made to employees permanently resident overseas.
• It does not include payments made in lieu of unpaid leave or long service awards.
• It does not include payments made to employees of the BBC's subsidiaries or charities.
• It does not include any settlements made in relation to equal pay disputes prior to August 2021.

Taking all of these riders into account it is likely that the total amount paid in settlement by the BBC is far greater than the £2,767,130 figure stated.

Despite acknowledging that settlement agreements were primarily a method of staving off employment tribunal claims, the BBC said there could be other reasons an agreement was entered into - e.g. retirement or voluntary redundancy. The BBC does not, however, maintain a central record of the reasons why settlement agreements are made.

Peter Jones, lead author of the TV Licensing Blog, said: "This latest information suggests that the BBC is spending huge sums of public money in an effort to prevent litigation and smooth the departure of disgruntled employees.

"TV licence holders would get far better value for money if the BBC addressed the underlying issues it clearly has in relation to employee satisfaction and wellbeing."

Responding to the public release of this information, a BBC spokesperson said: "The BBC is extremely conscious of how and why it spends licence fee money at all times. Like any employer, we aim to deal with any staff disputes as swiftly and amicably as possible and on occasion, where necessary, this may result in a settlement being reached."

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Further anti-BBC reading:

• Is The True Or Did You Hear It On The BBC?, by David Sedgwick (aff. link)
• The BBC: Myth of a Public Service, by Tom Mills (aff. link)