ACAS Launches Consultation On A New Code Of Practice On Settlement Agreements

As readers will be aware, the Government is in the process of introducing changes to the law in relation to Compromise Agreements.

As readers will be aware, the Government is in the process of introducing changes to the law in relation to Compromise Agreements. The main changes comprise:-

1. Compromise Agreements are to be renamed Settlement Agreements; and

2. The Government is intending to introduce a new law that offers of settlement cannot be used as evidence in employment tribunals in any resulting unfair dismissal claims, provided that there has been no improper behaviour in the process of discussing the agreement.

The Government has asked that ACAS prepare a statutory Code of Practice in respect of the new legislation in order to help employers and employees negotiate Settlement Agreements.

ACAS has now launched its consultation on its draft Code of Practice on Settlement Agreements which can be found at:

http://www.acas.org.uk/media/pdf/k/s/Acas-consultation-on-Draft-Code-of-Practice-on-Settlement-Agreements-February-2013.pdf

Among the questions asked by ACAS in consultation are:

• Whether the Code should contain good practice guidance on how Settlement Agreements are offered and discussed;

• Whether there should be a good practice recommendation to set out an initial offer of settlement in writing;

• The draft Code includes template letters for employers to use, and ACAS is seeking views upon their wording;

• The draft Code presently states that parties should allow a reasonable amount of time for an offer of settlement to be considered and has 7 working days as a minimum period. ACAS has asked whether it should in fact specify such a time period;

• Whether the Code should contain a good practice recommendation that employees should be allowed to be accompanied at meetings to discuss Settlement Agreements.

The most anticipated part of the Code relates to the definition of “improper behaviour”, which would usually result in the removal of legal protection. In the draft Code, this is stated to include:

• All forms of harassment that include intimidation through the use of offensive words or aggressive behaviour;

• Physical assault and other criminal or wrongful behaviour;

• Victimisation of people because they have invoked or sought to invoke a statutory right;

• Discrimination because of age, sex, race, disability, sexual orientation, religion or belief, transgender, pregnancy and maternity and marriage or civil partnership; and

• Putting undue pressure on a party.

The consultation closes on 9 April 2013.