Draft Code of Practice on Settlement Agreements - TUC response to Acas consultation

TUC response to Acas consultation

Overview

The TUC recognises that compromise agreements are widely used in workplaces to resolve disputes swiftly and to avoid potential employment tribunal claims. However, we are seriously concerned that the new legislative provisions on the admissibility of settlement offers and discussions in unfair dismissal cases will send a signal to employers that they are free to sack staff for arbitrary reasons without needing to follow a fair disciplinary procedure.

Employers will be free to initiate discussions about settlement agreements before a formal dispute exists, and even before employees are aware that they face problems at work. Whilst employees will have a theoretical right to turn the employer's offer down, many will consider they have no genuine choice other than to accept the sum of money and leave their job. Many employees will accept the offer simply because they assume it is a foregone conclusion they will be dismissed if they do not. Others will fear that they will be bullied or victimised if they remain in the job. The provisions are therefore open to abuse by employers and could have a detrimental effect on wider employment relations.

The TUC believes that it is important for the Acas Code of Practice to ameliorate some of these effects by combining clear guidance on the new legal provisions with best practice advice.

Download the TUC's full response to the Acas consultation: Draft Code of Practice on Settlement Agreements (PDF).