Settlement agreements for employment disputes

Posted On 21 Jun 2013
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Following recent ‘Ending the Employment Relationship’ consultation, the Government’s response has highlighted the introduction and implementation of a statutory code and guidance to encourage more prolific utilisation of settlement agreements. This coincides with proposed limits to unfair dismissal payments. The proposals include a 12 month pay-cap on compensation for unfair dismissal, as well as greater availability of template letters to encourage settlement agreements, along with a statutory code of practice with guidance as to what constitutes improper behaviour. However, there will not be a prescribed tariff for settlement agreements. Instead, guidance will highlight issues that should be considered when deciding financial settlements. Jo Swinson (pictured), MP for East Dunbartonshire, stated, ‘We are committed to finding ways to support both businesses and employees when a working relationship breaks down. Central to this is promoting the benefits of good communication, better management, and early dispute resolution, as this can lead to the best outcomes for everyone. We are working closely with Acas to get the rules and procedures for Early Conciliation right, and welcome the views of interested parties in our consultation. ‘Employment Tribunals are costly for everyone, in terms of money but also time and stress. We need to tackle unrealistic expectations about the levels of compensation awards, especially when only 1 in 350 people who make a claim for unfair dismissal receive an award of more than their own salary, and the average award is less than

About the Author
Brian Sims BA (Hons) Hon FSyI, Editor, Risk UK (Pro-Activ Publications) Beginning his career in professional journalism at The Builder Group in March 1992, Brian was appointed Editor of Security Management Today in November 2000 having spent eight years in engineering journalism across two titles: Building Services Journal and Light & Lighting. In 2005, Brian received the BSIA Chairman’s Award for Promoting The Security Industry and, a year later, the Skills for Security Special Award for an Outstanding Contribution to the Security Business Sector. In 2008, Brian was The Security Institute’s nomination for the Association of Security Consultants’ highly prestigious Imbert Prize and, in 2013, was a nominated finalist for the Institute's George van Schalkwyk Award. An Honorary Fellow of The Security Institute, Brian serves as a Judge for the BSIA’s Security Personnel of the Year Awards and the Securitas Good Customer Award. Between 2008 and 2014, Brian pioneered the use of digital media across the security sector, including webinars and Audio Shows. Brian’s actively involved in 50-plus security groups on LinkedIn and hosts the popular Risk UK Twitter site. Brian is a frequent speaker on the conference circuit. He has organised and chaired conference programmes for both IFSEC International and ASIS International and has been published in the national media. Brian was appointed Editor of Risk UK at Pro-Activ Publications in July 2014 and as Editor of The Paper (Pro-Activ Publications' dedicated business newspaper for security professionals) in September 2015. Brian was appointed Editor of Risk Xtra at Pro-Activ Publications in May 2018.