Consultation on ending the employment relationship

Close date: 23 November 2012

The Government consults on the use of "settlement agreements" and the level of the compensatory award for unfair dismissal, to help employers and employees make informed decisions and give more certainty about outcomes where an employment relationship is not going well. To support the changes to settlement agreements in the Enterprise and Regulatory Reform Bill, the Government proposes to provide guidance on their use. It sets out the principles that would form the basis of an Acas code of practice, model letters and a template settlement agreement, and a guideline tariff for settlement agreements. The Government also seeks views on whether or not the proposed 12-month pay cap on compensatory awards in unfair dismissal claims will encourage settlements, and whether or not the overall cap on compensatory awards is set at an appropriate level.
Consultation document: Ending the employment relationship (PDF format, 303K) (on the BIS website)
Government response: Ending the employment relationship (PDF format, 450K) (on the UK Government website)