It must be one of the oldest jokes in history, and it took two years to get to the punchline.
It began in December 2007, when Cllr Ken Bamber (Con) told an 'Irish' joke during a break in a meeting to discuss an appeal against dismissal.
Union official Brian Kelly took offence at the use of the word "Paddy" and filed an official complaint.
Now agreement has finally been reached between the two and Medway Council has agreed to pay compensation to Mr Kelly, who was its full-time Unison official.
Details are being kept private, but it is thought the agreement was reached at the conciliation service, ACAS, after it was referred there by the Employment Tribunal.
The council's standards committee, which is designed to maintain high standards in public office, discussed the matter in private.
Only those councillors on the committee have been given details of the agreement. One of the conditions bars either man from discussing the terms of the deal with anyone else.
Cllr Bamber was chairing the appeal hearing when the joke was told during a break in proceedings.
The Irish-born union representative said he considered "Paddy" was an offensive word and racist in intent.
Cllr Bamber scribbled a note saying he apologised, but it was alleged he would not sign it or say for what he was apologising.
Mr Kelly formally complained and the committee began investigating, but had to adjourn the case while it went before the employment tribunal and legal experts. Neither man was present to hear the committee discussions.
Mr Kelly, who left the council when his job was made redundant during the period of the investigation, was not contactable. He has received a discrimination payment from Cllr Bamber as well as the council's payout.
The offending joke:
"A man walked into a Dublin bar and saw a friend sitting with an empy glass. 'Paddy can I buy you another', he asked, to which Paddy replied - 'now what would I be wanting with another empty glass?'"
Don't miss out, subscribe today. Keep up to date with our newsletters.
A guide for your future. For year 11 students in Kent and Medway. Click here for the e-edition.
Education, Training & Childcare is a special supplement published by KM Media Group four times a year. Click here for latest e-edition.
Get the latest food and drink news, recipes from some of the nation's top chefs plus updates from Kent's vineyards and breweries.
Search in your local area to find your perfect partner in Kent, with FreshStart Dating! PLUS, register for free!.
Find out what's going on in the garden, with Kent expert Lucy Hewett's weekly update.
Buy pictures that you've seen in a KM newspaper, or send in a picture and we will place it on our photo sales website so that you can purchase a super, unique gift.