Employment Changes - Monday 29 July 2013

Several important employment related changes take effect from 29 July.

The key points to note are:

• The end of the Compromise Agreement: compromise agreements are being "rebadged" as settlement agreements because (interestingly) the Government believes this terminology is more conducive to negotiating an agreement. Template letters and a model agreement are expected to be published by the end of July, but these are not yet available.
• Pre termination negotiations: A new provision is being introduced to allow for offers to end employment on agreed terms to be made on a confidential basis, so that the discussions are inadmissible in any subsequent claim for unfair dimsissal. There are, however, significant limitations in relying on this provision, for example the protection only applies to claims of unfair dismissal (not discrimination, breach of contract etc.) and we are concerned that this will lead to satellite litigation to determine whether the protection