ACAS Consultation on Settlement Agreements opens

ACAS has now launched a consultation on a new ‘Code of Practice on Settlement Agreements’. The Code, which aims to help everyone in the workplace understand how settlement agreements will work in practice, is due to come into effect alongside new legislation governing the use of settlement agreements by employers and employees.

Under the new legislation, any offers or discussions regarding settlement agreements will not be able to be used in evidence in unfair dismissal claims unless either of the parties has engaged in ‘improper behaviour.’ The definition of ‘improper behaviour’ is one of the issues that will be dealt with in the accompanying ACAS Code.

The consultation on the Code closes on 9 April 2013 and can be found here:

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