Corporate director at Tower Hamlets Council settles discrimination claim for “£100,000”

Direct 2 Lawyers
January 30, 2013

The East London Advertiser reports that a discrimination claim brought against Tower Hamlets council by one of its most senior staff members has been settled for (reportedly) £100,000 after the claim was withdrawn and dismissed.

Mr Aman Dalvi, corporate director for development and renewal services at Tower Hamlets council, brought the discrimination claim against his employers and Labour group leader councillor Joshua Peck last year after Labour councillors voted to block his appointment as Chief Executive Officer at the council. This incident occurred after former Chief Executive Kevan Collins left the £195,000-per-annum job in July 2011. Mr Dalvi believed that this action was motivated by discrimination and subsequently brought an Employment Tribunal claim.

Mr Dalvi, who apparently earns more than £125,000 a year at the Council, settled his claim for a reported £100,000 last December. It is not known whether that figure includes Mr Dalvi’s legal fees for issuing the Employment Tribunal claim. However, the high value of the claim and the speed with which it was settled would suggest that Mr Dalvi had a potentially strong claim against the Council (as the median value for discrimination awards is far below this figure). A statement released by both parties said: “Following agreement between the parties Mr Dalvi’s Employment Tribunal claim against the Council and Councillor Joshua Peck has been withdrawn and dismissed by the Employment Tribunal”.

It is not known what types of discrimination Mr Dalvi pleaded at the Employment Tribunal or what protected characteristics he relied on to bring his claim. However, should Mr Dalvi pleaded direct discrimination or harassment on the grounds of his race or religious belief he would have to show the following:

Direct discrimination: that he was treated less favourably than other comparable members of staff who were not of his race and/or religious belief
Harassment: that he was subjected to unwanted conduct which had the purpose or effect of humiliating him or of violating his dignity (etc.)

It is not known whether Mr Dalvi’s legal team used a COT3 settlement agreement form or a compromise agreement (soon to be renamed to “settlement agreement”) to settle the claims (although a COT3 form is more likely). Under the terms of the agreement reached there would have been a stipulation for confidentiality as to the nature, terms and reasons for the Employment Tribunal claim and settlement, which would explain why there is little information available relating to the claim.

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