We recently wrote about the birth of settlement agreements with effect from the 29th July 2013. ACAS has now published its Code of Practice here. This Code has statutory force which means that employers should both familiarise themselves with it but also follow the Code where possible. Whilst failing to follow the Code does not mean an employee has an additional claim or that the employee will get increased compensation, it is something that the Employment Tribunal will however take into account when considering the case. Employers therefore ignore the Code at their peril.
In conjunction with the Code, ACAS have issued guidance (here) on settlement agreements. This has no statutory force but has been written to assist employers and indeed employees on this new area of law. It has template letters to assist employers with initiating settlement discussions and helpful examples.
Sarah King, Consultant Solicitor
Posted on Thursday, 8th August 2013