Basis for approving indemnification of eBasis for approving indemnification of employees against costs or damages

Basis for approving indemnification of employees against costs or damages

8 The indemnification of an employee against any costs or damages payable to another party by the employee (including as a result of agreeing to a reasonable settlement) in civil proceedings is only to be approved on condition that the employee has agreed that the employee’s defence will be controlled by the Commonwealth and that the employee will provide all assistance required by the Commonwealth in the conduct of the defence. 8A The indemnification of an employee against costs incurred in criminal proceedings against the employee and any penalty payable by the employee as a result of those criminal proceedings is not to be conditional upon that employee agreeing that the employee’s defence will be controlled by the Commonwealth. However, an indemnity may be expressed to be subject to the condition that it extends only to expenses to which the employing body gives approval. 9 Indemnification may be refused if an employee has failed to notify the employing body of the proceedings within a reasonable time of becoming aware of them and the delay may prejudice the Commonwealth’s position. 10 Payment of any amount by way of assistance may nevertheless be refused if assistance is not provided as required by paragraph 8 of this Appendix.