The heated argument within the Whitley Council has escalated.
After a meeting this morning the employees' side has suspended all business.
The row centres around allegations made by chairman of the employers’ side - John Houghton, MHK - about an employee counterpart, Angus Kelly.
The employee was reported to the police, and the matter has now been forwarded to the attorney general.
Bernard Moffatt, from the employees' side, says there will now be no business carried out in the council, which has instructed its advoctes to write to the chief constable expressing its concerns over the involvement of the attorney general.
He told Manx Radio:
"The attorney general is the adviser to Mr Houghton and his colleagues on the Isle of Man Whitley Council, and he could also advise Mr Houghton as a member of Tynwald.
"We think it's absolutely outrageous that the attorney general is going to make an adjudication on an issue that he has got a partial interest in.
"That correspondence will go off later today, and sadly the situation appears to be deteriorating considerably."
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