Croydon LBC chief executive Katherine Kerswell will face a personal allegation of racial discrimination during an employment tribunal brought by a former council director, a judge has confirmed.

Hazel Simmonds, one of four directors suspended after Croydon issued a section 114 notice in 2020, has accused Ms Kerswell and Croydon of racial discrimination.

Croydon effectively sought to remove the allegation against Ms Kerswell at a preliminary hearing last month.

But Judge Paul Abbott denied the request.

Ms Simmonds also claims Croydon made unlawful deductions to her wages during her suspension and accuses the council of constructive or unfair dismissal.

She resigned from Croydon in September.

Sources familiar with the case said the full tribunal hearing was unlikely to take place until late next year or early in 2024.

Judge Abbott has ordered a lengthy 11-day hearing due to the volume of material involved.

Ms Kerswell, who was appointed to lead Croydon's management following the council's cash crisis and the resignation of former chief executive Jo Negrini, and Croydon deny all allegations against them.

A Croydon spokesperson said: '‘External, independent investigation reports at internal grievance stages of the process have exonerated Ms Kerswell of all complaints including those of racial discrimination.'

After receiving a sensitive report written by independent investigator Richard Penn in February 2021, Ms Kerswell suspended four senior managers: executive director of place Shifa Mustafa, finance director Lisa Taylor, executive director of health Guy van Dichele and Ms Simmonds.

The MJ last week obtained a copy of Mr Penn's unpublished report, which alleged that ‘organisational dysfunction' at senior political and management levels led to the financial collapse of the authority.

Mr Penn blamed ‘poor governance by the former political leadership of the council' and ‘correspondingly poor managerial leadership'.

Clarification: 

Croydon LBC has asked us to clarify that the council did not seek to remove allegations from the racial discrimination tribunal claim, but only to remove chief executive Katherine Kerswell as a separate respondent.

The council has also asked us to point out the act of suspending the four directors was conducted by the director of human resources, not Ms Kerswell as head of paid service.