31 July 2013

Acas finally issue Code of Practice on settlement agreements

As we explained in our hot news earlier this month, from 29 July 2013, employers wishing to enter into discussions about reaching a mutually agreed termination with an employee will be able to enter into confidential discussions which, provided the appropriate statutory process has been followed, will be inadmissible in any later unfair dismissal claim from the employee. The provisions will not apply to automatic unfair dismissals or where there was improper behaviour during the discussions. In addition, 'compromise agreements' will be renamed as 'settlement agreements'.

To support the introduction of settlement agreements Acas finally produced a statutory Code of Practice on the same date as the new agreements came into force - 29 July 2013. The Code explains what settlement agreements are and provides guidance on the law concerning the confidentiality of negotiations. Acas has also produced a non-statutory guide providing more detailed guidance on the use of settlement agreements.

To read the Code of Practice, click here

To read the Acas guide, click here

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