New ACAS Guide on Settlement Agreements

Code Green: ACAS has today published guidance on the new ‘Settlement Agreements’.

On 29 July 2013 Compromise Agreements became known as “Settlement Agreements” and new rules were introduced governing the confidentiality of discussions had between employer and employee where those discussions were aimed at settling potential ordinary unfair dismissal claims. The changes were accompanied by an ACAS Code of Practice which dealt specifically with the use of Settlement Agreements in the context of the new rules about confidentiality.

The Guide published by ACAS today – “Settlement Agreements: a Guide”  – is much wider than the Code and deals not just with the issue of confidentiality but also with best practice in relation to the form and the use of Settlement Agreements generally.

The Guide includes draft template letters and a model Settlement Agreement. Although the template letters and model agreement could be of use in the most straightforward of circumstances, given the potential for error we would always recommend that employers take legal advice when seeking to make use of the new Settlement Agreements.

If you have any queries  about Settlement Agreements please contact Morrisons Solicitors’ Employment team, call us on  01737 854500 or  email [email protected]

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