Government reforms: What’s new this month? (4) Settlement agreements and ACAS code

settlement agreementFrom 29 July 2013 compromise agreements are officially renamed as “settlement agreements” and the pre-settlement discussions relating to them are prevented from being referred to in evidence in an unfair dismissal case (note that this rule only applies in an unfair dismissal case).

The ACAS Code of Practice on Settlement Agreements has now been approved and is also applicable from the above date.

There will also be non-statutory, guidance from ACAS accompanying the Code, which has not yet been published but which we can expect to contain further best practice guidance, template offer letters and a model settlement agreement.

For further detail on the Code please see our June 2013 Newsletter Government reforms: (3) Settlement agreements & the final ACAS code.