Acas has welcomed the Department for Business, Innovation and Skills’ (BIS) request for it to write a new Code of Practice on Settlement Agreements.

The Code will give clear and reliable guidance on how to handle these agreements in a fair way and it will be taken into account in employment tribunal decisions.

Acas Chair, Ed Sweeney, said:

“We are pleased that BIS has asked Acas to draft a new Code of Practice for employers and employees. This recognises our knowledge, expertise and excellent reputation in employment relations. By referring to a clear and straightforward Code, employers and employees can be confident that they will know how to handle the termination of an employment relationship fairly.”

BIS has also published evidence from its consultation on the Acas Code on Discipline and Grievance. The overall response to the Code was positive, with most respondents thinking its principles and language are fit for purpose. However, Acas looks forward to working with BIS on reviewing the responses and to providing guidance specifically for small firms.