The Government has published its response to the 'Ending the Employment Relationship' consultation, which sought views on, among other things, various measures to facilitate the use of settlement agreements and the introduction of a reduced cap on the compensatory award for unfair dismissal. The Enterprise and Regulatory Reform Bill has already been amended to insert a new section into the Employment Rights Act 1996 which allows an employer to hold a discussion with an employee with a view to terminating his or her employment under a settlement agreement, without the employee being able to rely on the details of the conversation as evidence in an unfair dismissal claim. The Government response sets out a number of measures the Government will take to implement the provision and subscribers will receive a Legal Alert next week providing more detail. The response also confirms that subject to parliamentary approval, the Government intends to introduce an individual cap of 12 months' pay of the employee concerned, which will apply where this amount is less than the overall cap (currently £72,300).
This provides summary information and comment on the subject areas covered. Where employment tribunal and appellate court cases are reported, the information does not set out all of the facts, the legal arguments presented and the judgments made in every aspect of the case. Employment law is subject to constant change either by statute or by interpretation by the courts. While every care has been taken in compiling this information, we cannot be held responsible for any errors or omissions. Specialist legal advice must be taken on any legal issues that may arise before embarking upon any formal course of action.
