Consultants set for €200m back pay after contract cases settled
Hundreds of consultants allege there was a breach of their contract on pay promises
As part of the settlement, consultants will receive corrected remuneration. Photograph: Thinkstock
Hospital consultant doctors are to get a pay increase following the settlement of their breach of contract claims against the Health Service Executive and the State.
At the High Court on Friday Ms Justice Úna Ní Raifeartaigh was informed that several lead actions they brought over what the claimed was a failure by the state to comply with the terms the 2008 Consultants Contract had been settled in their entirety.
As part of the settlement, consultants will receive corrected remuneration as well as retrospective payment of remuneration.
It is understood the deal will cost the state €200 million and will add €60 million to the annual consultants pay bill.
The Judge was due to hear several lead cases in claims brought by hundreds of consultant doctors who alleged there was a breach of their contract in relation to agreed pay promises in the 2008 consultants’ contract.
It is estimated that up to 700 breach of contract claims in total had been brought against the various defendants.
As part of the 2008 agreement consultant doctors accepted new working conditions from July 2008 onwards, including increasing their working week from 37 to 39 hours.
The consultant’s actions had been opposed by the State and the HSE.
On Friday John Rogers SC, who represented several of the 10 doctors taking the lead cases, said the cases centred on the State failure to pay remuneration due to the doctors as had been agreed as part of the 2008 contract.
Counsel said “the essence of the cases” was the state’s inability to pay the consultants following the financial crash.
Counsel said that following lengthy talks between the various parties an agreement had been reached to resolve the dispute.
The cases could be struck out on terms including that the doctors are to get declarations they are entitled to prospective and retrospective remuneration, their legal costs against the defendants.
The settlement, counsel said, will apply not only to the lead cases, but other consultants whose cases are pending before the courts, and other non-litigating consultants who fall within the terms of the settlement.
Counsel said the 2008 agreement was “a visionary instrument” which resulted in consultants having a greater involvement in the running of the health services.
The settlement, counsel said, was “a new dawn” which will result in the vision and objectives of the 2008 agreement being “fully realised.”
Counsel thanked the Judge for granting the parties time to bring about a resolution of matters that applied to a great number of people.
He also acknowledged the role of parties including the IMO, ICHA, who he said had worked together on the cases, as well as the Department of Health the HSE and the Ministers for Finance and Health in bringing about the settlement.
The cases, which were due to start last week had been adjourned on several occasions to see if the claims could be resolved.
The cases, had they opened before the Judge, were expected to run for several weeks.
Ms Justice Ní Raifeartaigh welcomed the settlement of what was lengthy, complex and “clearly very urgent” litigation.
The judge then agreed to make the terms of settlement an order of the court.