Acas Consultation on Settlement Agreements

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Acas has launched a consultation during February on a statutory code of practice for use alongside the forthcoming legislation on settlement agreements which will allow pre-termination negotiations inadmissible in unfair dismissal claims. Compromise agreements are being renamed “settlement agreements” under The Enterprise and Regulatory Reform Bill and introduce a lawful opportunity for discussions to take place between employer and employee with a view to agreeing confidential terms on the termination of employment. The draft code of practice lays down the broad principles covering the use of settlement agreements. It will be accompanied by non-statutory guidance. Acas invites views on the draft code by 9th April, 2013 and expects the new legislation and accompanying code to be brought into force by mid-2013. You can read more on this on the wwww.acas.org.uk website

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