Updated guidance on the use of settlement agreements and the process for making severance payments

SAVE ITEM

23 / 12 / 2013 9.49am

The guidance on the use of compromise agreements and confidentiality clauses, originally published in April 2013, has been revised to reflect changes introduced by the Enterprise and Regulatory Reform Act ("ERRA") 2013. 

 

What are the changes?

  • the renaming of "compromise" agreements - employers considering the use of any such arrangements on or after 29 July 2013 should refer to them as "settlement" agreements. There is no requirement to make amendment to any agreements made prior to this date

  • the introduction of new provisions under Section 111A of the Employment Rights Act ("ERA") 1996 for pre-termination negotiations to remain confidential

  • the publication of a new statutory Code of Practice on Settlement Agreements by ACAS. The Code includes an explanation of new law and guidance on how to offer a voluntary settlement and what would constitute "improper behaviour".

    Employers will find it useful to read the Code in conjunction with this document, a copy can be downloaded from the ACAS website at: www.acas.org.uk

Guidance for employers within the NHS on the process for making severance payments 

In line with the changes, updates have also been made to the Guidance for employers within the NHS on the process for making severance payments. 

Further information

Further guidance for employers can be found on our Raising Concerns at work web pages. 

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