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ARTICLE · 04 SEPTEMBER 2013

ACAS Publishes Final Draft "Code Of Practice On Settlement Agreements"

ACAS has published a revised final draft of the statutory "Code of Practice on Settlement Agreements" which accompanies the new provisions making pre-termination settlement negotiations inadmissible in ordinary unfair dismissal proceedings, unless there has been improper behaviour by one of the parties.

United KingdomEmployment and HR

ACAS has published a revised final draft of the statutory "Code of Practice on Settlement Agreements" which accompanies the new provisions making pre-termination settlement negotiations inadmissible in ordinary unfair dismissal proceedings, unless there has been improper behaviour by one of the parties.  These provisions will run alongside the existing "without prejudice" rule.

The final version of the Code includes various changes arising from comments received in the recent consultation process:   

  • The recommendation for initial settlement offers to be in writing has been removed but the final agreement must still be in writing. 
  • Template settlement offer letters will be included in non-statutory guidance rather than the statutory Code.

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