An amendment to the Enterprise and Regulatory Reform Bill has been published by the Government. The provision inserts a new s.111A into the Employment Rights Act 1996 in order to prevent employment tribunals from taking into account any offer made by an employer to an employee to terminate their employment on agreed terms i.e. a settlement agreement. However, this new provision only applies to employment tribunals hearing claims of unfair dismissal.
This amendment is similar to the concept of ‘protected conversations’ which were due to be consulted on this year. However ‘protected conversations’ would have had wider coverage as they were not limited to unfair dismissal. We will have to wait and see what happens to the concept of ‘protected conversations’ over the next few months.
This new amendment has to be approved by the House of Commons Committee and so may be subject to further amendment.