The Government is trying to make it easier for small employers, particularly, to have flexiblity in their workforce arrangements and not be burdened by costly legal bills.
However, at this stage there is a lot of consultation going on about how best that might be achieved without removing too many rights for employees.
We have already seen the change to unfair dismissal rights extended from one ot two years to allow employers more time to deal with employee issues.
Vince Cable says "Settlement agreements are smart, fair and pro-business reforms which deliver results for employees and employers. It empowers employers by enabling them to keep their workforce flexible and encouraging alternative ways of solving workplace problems rather than resorting to a tribunal.
Often small employers are not confident in dealing with difficult employee issues and these suggestions are aimed at making it easier for them not to fall fowl of the law.
Settlement agreements are meant to be a simplification of compromise agreements, with the Government possibly preparing a template of the agreements in the form of a letter that can be sent to employees. Allowing the conversations that take place around settlement agreements to be protected from disclosure if a case is taken to a tribunal by an employee.
There are still many unanswered questions which the consultation period may hopefully address. At present compromise agreements require independent legal advise to be obtained before signing, is that going to change?
Even though employees can reject the agreements, will there be more pressure to sign under this new system?
We will have to wait until the results of the consultation in the summer for some of the answers to be provided.
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