The suspended Croydon LBC director who had threatened the council with legal action has resigned, the council has confirmed.
Executive director of localities, Hazel Simmonds, was one of four senior staff suspended by the incoming chief executive Katherine Kerswell more than 18 months ago.
Ms Simmonds previously launched a grievance claim against the council for race discrimination, victimisation and unlawful reduction in wages.
In addition, she brought a direct claim of race discrimination against Ms Kerswell personally.
A statement from Ms Simmonds read: 'Croydon LBC has taken well over 18 months to investigate the allegations against me, which, bizarrely, include matters which occurred long before I arrived in 2018.
'The procedure the council has now adopted has made it clear that I will not receive a fair hearing and will not be allowed to return to work.
'I have therefore been constructively dismissed and will pursue my complaints in the employment tribunal.'
A council spokesperson said: 'The council adopted and has followed the Joint Negotiating Council (JNC) chief executive disciplinary model procedure, which afforded Ms Simmonds enhanced protection in the disciplinary process and is compliant with the ACAS [Advisory, Conciliation and Arbitration Service] code of practice.
'As such, the allegations made by Ms Simmonds in her statement to The MJ are disputed.'
Three other suspended directors – director of finance Lisa Taylor, executive director of place Shifa Mustafa and executive director of health, wellbeing and adults Guy van Dichele – resigned previously.
Mr van Dichele is understood to be bringing an employment tribunal against the council imminently.
Croydon issued the first of two Section 114 notices in November 2020.
A report issued by Grant Thornton earlier this year found the council revamp of a theatre and arts centre cost more than £67m – more than double the budget – with the auditor claiming the then chief executive, two section 151 officers and monitoring officer all failed to fulfil their statutory duties.
Ms Simmonds claimed the report had exonerated her though this has been denied by the council.
