Mr Bailey was given his notice last week by the recently-elected council, a deliberation from an extraordinary meeting dealing with a council staff survey that allegedly details claims of a negative workplace culture.

Both Lithgow City Council and Minister for Local Government Paul Toole could not confirm reports from television news outlets Mr Bailey will pocket a figure close to $200,000 as severance. 

"The employment of the general manager is a matter for the council,” Mr Toole said in a statement.

“It will be for councillors to explain these issues to the community. The council must get on with working in the interests of ratepayers and residents in the local area."

The motion to terminate his contract was voted in favour 6-3, with councillors Maree Statham, Cass Coleman, Martin Ticehurst, Joe Smith, Steve Ring and Geoff Cox giving Mr Bailey his notice.

Councillors Ray Thompson, Wayne McAndrew, and Stephen Lesslie voted against the motion.

Cr McAndrew said he moved an amendment for Mr Bailey’s contract to not be renewed as a result of the survey, instead of terminating his contract immediately, which was lost.

That amendment would’ve seen Mr Bailey stay in his job until September next year.

The amendment also called for “external experts” to review management procedures, as Cr McAndrew said there were issues within council itself, not just senior management.

“I have been dealing with issues within council for some time,” Cr McAndrew said.

Cr McAndrew also said he was unsure of the next council meeting’s agenda, but said if residents wanted to speak on this issue they could register to speak during the public forum.