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Settlement Agreements are on the way...

ACAS has recently published some draft guidance on the use of settlement agreements.

So, what are settlement agreements?  Where an employment relationship is simply not working, it is envisaged that the settlement agreement will form a ‘way out’ for parties and an agreed exit which might ordinarily constitute potential unfair dismissal circumstances.

The evidence of such confidential offers and negotiations would be inadmissible in unfair dismissal proceedings, but only unfair dismissal proceedings. Furthermore, evidence may have to be made available to a Tribunal if it is suggested that the requirement for things said and behaviour conducted not to be ‘improper’. Settlement agreements will still require parities to take advice on their statutory rights using appropriate legal representatives.

This process with sit alongside the existing ‘without prejudice’ and ‘compromise agreement’ situation where there is an existing dispute between employer and employee.

For further advice and guidance on this and any related matters, please do not hesitate to contact Kelly Halls on 0800 542 7550 or by email at [email protected]

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