Settlement agreements are legally binding contracts, which can be used to end an employment relationship on agreed terms.
The Government is introducing new legislation that will mean that any offers or discussions about settlement agreements cannot be used as evidence in an unfair dismissal claim unless either of the parties has engaged in some kind of improper behaviour.
The ACAS Code will come into effect alongside the new legislative provision to help everyone in the workplace understand how it will apply in practice, and the Code will also explain what constitutes improper behaviour.
Acas Council Chair, Ed Sweeney, said:
“This draft Code draws on our knowledge, expertise and experience in helping to resolve thousands of workplace disputes every year.
“We hope it provides employers and employees with clear, straightforward guidance on how the new provisions on settlement agreements will work. We are very keen to hear what the public think of the draft code.”
Further information and copies of the draft code can be obtained from the Acas consultations page of the Acas website and the deadline for comment is 9 April 2013.