13 February 2013

Acas launches consultation on Code of Practice on Settlement Agreements

The Government is introducing new legislation which will mean that offers or discussions about settlement agreements (i.e. legally binding agreements to end employment on agreed terms) cannot be used in evidence in an unfair dismissal claim unless either of the parties has engaged in some improper behaviour.

Acas has today launched consultation on a draft Code of Practice on Settlement Agreements which will come into effect alongside the new legislation to help everyone understand how it will work in practice, including explaining what constitutes improper behaviour.

To read the Code click here.

Acas is also planning to produce non-statutory guidance which will provide more detail on the agreements and how they might be negotiated.  

The deadline for comment on the draft is 9 April 2013. The new legislation and the accompanying code are due to be implemented by the summer of 2013.

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