Bradford Council will pay tens of thousands of pounds out to its biggest trade union to recompense staff said to have been distressed over a jobs transfer.
The £40,000 will go to public services union Unison "in the interests of good industrial relations".
The union had logged an application to go to an employment tribunal on behalf of about 300 members complaining about Council procedures at the time of the transfer of some social services functions to Bradford NHS Care Trust last April.
It involved moves for Council staff dealing with the care of people suffering mental health and disability problems.
The problem is understood to involve communication with unions and information for staff.
Ultimately all the staff transferred to the trust under legislation protecting the existing terms and conditions of their employment.
In a joint statement today the Council and Unison said they had reached an agreement over a claim from the union that the authority failed to consult it when the Trust was set up last April.
It added: "Both parties acknowledge that the proceedings were complicated and the delay of Government departments in amending new legislation to protect employees' rights meant that everyone concerned had to work to very tight deadlines."
The statement says the Council believes it met its legal obligations in the setting up of the care trust. But it accepts that some employees became anxious in the run up to the transfer.
But the statement adds that Unison does not accept the authority met them.
"In the interests of good industrial relations the Council has agreed to make a payment of £40,000 to be distributed by Unison at its discretion among those affected.
"Bradford Council and Unison are committed to providing the highest quality public services.
"The Council's most important asset is its employees and it wants to work with Unison and other recognised trade unions to ensure that it follows the best employment practice."
Bradford branch Unison chairman Liz Devlin said: "We are pleased to hear the Council's commitment to good industrial relations."
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