Government is drafting new laws to close a loophole exposed by former Assistant Police Commissioner Wayne Perinchief, it emerged last night.

Yesterday Mr. Perinchief reached an out of court settlement with Government over his dismissal from the Bermuda Police Service.

It is understood that a second senior Police officer made redundant at the same time may also be close to clinching a deal with Government.

Mr. Perinchief was made redundant when his post was abolished under moves to trim the Police hierarchy in January last year.

But Government did not pass the necessary legislation to legally alter the size of the Force and Puisne Judge Norma Wade ruled that Mr. Perinchief was wrongfully dismissed.

Government said it would appeal the decision, but yesterday reached an out of court settlement.

Last night Premier David Saul said 15 Government departments were affected by the need to pass legislation before staffing could be altered.

"We have been working with the Attorney General to correct this anomaly and we are going to bring in a piece of legislation to treat every department in the same way,'' said the Premier.

He added: "We were going to appeal Justice Wade's ruling and we had every feeling that we would win.

"However we have reached an amicable arrangement whereby we have an out of court settlement and both parties are content.'' Government's appeal was due to be heard yesterday, but Crown Counsel Philip Storr told the Court of Appeal that an out of court settlement had been agreed.

It is understood the settlement was finalised last Friday evening after days of talks involving Mr. Perinchief's legal team of Delroy Duncan and English QC Lord Lester.

Exact details of the settlement are being kept confidential however they include: Mr. Perinchief's voluntary resignation from the Bermuda Police Service as Assistant Commissioner with effect from March 15; Payment of damages for wrongful dismissal and legal costs; and Withdrawal of Government's appeal and Mr. Perinchief's civil and constitutional proceedings -- he recently filed a second writ.

Mr. Storr added: "The Government and the Commissioner of Police pay tribute to the dedicated public service given by Mr. Perinchief for more than 30 years in keeping the peace, preventing and detecting crimes and upholding the rule of law for all citizens of Bermuda.

"His meritorious service resulted in his receiving the Colonial Police Medal in 1991.

"Mr. Perinchief has been a loyal and efficient member of the Bermuda Police Force for his entire adult life and he deserves public gratitude.'' After the announcement, Lord Lester said the agreement was in the interests of justice as well as the public's interests.

Perinchief settles "Speaking as one of his counsel I feel the agreement is very much in the public's interests as well as our client's interests. He is now in a position where he can start a new life,'' said Lord Lester.

Mr. Duncan added: "I am very happy that the ordeal that my client has been through has come to an end and he is to be compensated for the services he has given to the Government.'' Mr. Perinchief, who has been on partial Police pay since his post was abolished, declined to comment.

Former Superintendent George Rose was made redundant when his post was abolished at the same time as Mr. Perinchief's.

Mr. Rose declined to comment on his situation saying: "I am in consultation with my attorney and matters are ongoing.'' Last night Shadow Home Affairs Minister Alex Scott welcomed the settlement, particularly the public recognition of Mr. Perinchief's service.

He added that he believed Mr. Perinchief's fight and the PLP's campaigning could have saved other Police jobs.

"It seems to me to be a resounding victory for Mr. Perinchief and I am pleased to hear the public recognition of his excellent Police record. There was always a cloud placed over his record during this case.

"This settlement says that the case should never have happened and I think that the Government was posturing and trying to bluff their way through trying to give the impression they could win.''