Settlement Agreements and Confidentiality of Discussions

From 29th July, compromise agreements will be known as settlement agreements. The formalities and scope are much the same. However, there are a few points you need to be aware of if you become involved in a potential dispute with an employee that could lead to a legal claim.

A new provision has been introduced allowing confidential discussions to take place about an employment issue that could lead to a claim being made.  Examples could include a significant change to an individual’s role or discussing an employee’s future and potential departure. Those discussions may attract protection from being admitted into evidence in a subsequent claim of unfair dismissal. The protection does not apply to any other claims such as breach of contract or discrimination. Protection of those discussions may also be lost if there is any improper behaviour in making an offer or agreement.

Often several aspects of employment law arise in a dispute and the limited protection of discussions in an unfair dismissal claim will not always be of much help. Beware that you are not lulled into a false sense of confidentiality in such discussions.

For fuller details of the changes and implications see the article on our HR Management Dimensions blog

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