Sir Philip Rutnam had resigned as Permanent Secretary in the department last year and was being represented by the FDA civil servants union in a “constructive dismissal” case, which was due to be heard at an Employment Tribunal later this year.
Patel had denied allegations of bullying in the department raised by him at the time. According to reports, the resolution of the case involves an undisclosed financial settlement as well.
In its statement, the UK government said it “regrets the circumstances surrounding Sir Philip’s resignation”.
“The government and Sir Philip’s representatives have jointly concluded that it is in both parties’ best interests to reach a settlement at this stage rather than continuing to prepare for an Employment Tribunal,” a Home Office spokesperson said.
“The government does not accept liability in this matter and it was right that the government defended the case,” the spokesperson said.
In a statement released through the First Division Association (FDA), Rutnam said: “I am pleased to say that the government has today settled the claims that I brought against them and which were due to be heard in an employment tribunal in September.
“This settlement resolves my own case. The FDA is continuing to pursue in separate proceedings the wider issues that have been raised. I now look forward to the next stages of my career.”
The high-profile resignation led the UK Cabinet Office to launch an inquiry into whether Patel had been in breach of the ministerial code.
The Indian-origin Cabinet minister, who has consistently had the backing of UK Prime Minister Boris Johnson, had apologised and stressed that “any upset I have caused was completely unintentional”.