The Government has issued consultation on various issues relating to ending employment relationships, covering settlement agreements (the new name for compromise agreements), protected conversations and unfair dismissal compensation.

Proposals include:

  • Making offers of settlement inadmissible in unfair dismissal claims;
  • Introducing a standard settlement agreement;
  • A guideline tariff to assist settlement negotiations;
  • A statutory Code of Practice setting out the broad principles governing a settlement; and
  • A cap on the unfair dismissal compensatory award of 12 months’ pay.

Consultation closes on 23 November 2012.