Tag Archives: settlement agreements

Making Settlement Agreements Work – 5 Tips for Employers

Settlement agreements can be a useful, and mutually beneficial, way of bringing a contract of employment to an end or resolving a dispute with an employee. Settlement agreements provide the opportunity to control a situation and draw a line under an issue at an early stage, avoiding the inconvenience and cost of going to an Employment Tribunal, giving you more time and resources to devote to your business. However, to get these potential benefits it’s important to take a comprehensive approach. In this post, we look at some of the issues employers should look out for when considering use of a settlement agreement and suggest five tips for making sure your settlement agreement is effective. 

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CIPD welcomes settlement agreement proposals

As the Government publishes its response to the consultation on ending the employment relationship, the Chartered Institute of Personnel and Development (CIPD) has welcomed the Government’s decision to make it easier for small businesses to enter into settlement agreements with underperforming employees.

The Government has pledged to work with Acas to ensure that guidance for employers on the procedures to follow before entering a settlement agreement offers effective protection for good management practice and promotes positive relationships in the workplace.

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Government sets out plans for settlement agreements

The Government has outlined its proposals for reform of the workplace dispute resolution process as the Enterprise and Regulatory Reform Bill gets its second reading.

The Government is proposing that employers will be able to offer settlement agreements before a formal dispute arises and will be legally protected from this offer being used as evidence in an unfair dismissal tribunal case. Employees will also continue to enjoy full protection of their employment rights, as they can choose to reject the offer of a settlement agreement and proceed to a tribunal. Evidence from the private sector shows that a sensible compromise can be reached in the majority of cases.

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