Acas has today launched a consultation on a new Code of Practice on Settlement Agreements. Settlement agreements are legally binding contracts which can be used to end the employment relationship on agreed terms.

The Government is introducing new legislation which will mean that any offers or discussions about settlement agreements cannot be used as evidence in an unfair dismissal claim unless either of the parties has engaged in some improper behaviour. The Acas Code will come into effect alongside the new legislative provision to help everyone in the workplace understand how it will work in practice. The Code will also explain what constitutes improper behaviour.

Acas Council Chair Ed Sweeney said: “This draft Code draws on our knowledge, expertise and experience in helping to resolve the thousands of workplace disputes every year. We hope it provides employers and employees with clear, straightforward guidance on how the new provisions on settlement agreements will work. We are very keen to hear what the public think of the draft code.” To support the Code, Acas is planning to produce non-statutory guidance on settlement agreements which will provide more detail on the agreements and how they might be negotiated. Further information and copies of the draft code can be obtained from the Acas website. The deadline for comment is 9 April 2013.