Settlement

In many cases, the parties involved in an employment-related dispute will be keen to avoid the cost, uncertainty and time involved in either initiating (or responding to) an employment tribunal claim or, where a claim has been submitted, proceeding to a full tribunal hearing. Attempts to negotiate a settlement of the claim or potential claim may be made as soon as the dispute arises, before the submission of the claim or response, or at any point during the employment tribunal process (including during any period between determination of liability and remedy). The party initiating settlement negotiations will usually be keen to ensure that the existence and details of any offer or discussion are not admissible in any employment tribunal (or other court) proceedings.

If settlement terms are agreed, the means by which that settlement takes effect may depend on:

  1. the nature of the claims or potential claims being settled

  2. whether or not the claim has been submitted to the employment tribunal

If the employment dispute relates to contractual claims only, settlement may be recorded in 'ordinary' binding contractual form.

If the dispute relates to one

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Latest Employment News

House of Commons publishes motions ahead of consideration of Employment Rights Bill on 8 December

The House of Commons on 5 December published motions relating to Lords amendments to the Employment Rights Bill (ERB), in advance of its consideration of the those amendments on 8 December (to be followed by a swift ping-pong back to the Lords, expected on 10 December).The government amendments include: guaranteed hours offers for zero hours workers—the government has offered a concession in the form of consultation on the initial reference period unfair dismissal—in addition to the reduction of the qualifying period from two years to six months (rather than its removal altogether), the government amendments would remove the unfair dismissal compensation cap entirely by omitting section 124 of the Employment Rights Act 1996 (ERA 1996)reasons for dismissal for which there is no qualifying period—the government proposes to include in the list of reasons in ERA 1996, s 108(3) dismissal for failure to disclose a spent conviction or ancillary circumstances seasonal workers—the government proposes to consult with those representing the interests of seasonal workers and their employers before making regulations contributions to political funds from union members—the government amendments provide for an opt-out notice to be given on a day specified in, or determined by, the trade union’s rules, and for the Secretary of State to publish guidance (within three months of the measures coming into force about the kind of provision which the Secretary of State considers it is appropriate for the rules of a trade union to make for these purposes industrial action balloting—the government amendments require the Secretary of State, before bringing regulations into force to have regard to the effect provision for balloting other than by post on the proportion of those eligible to vote in such ballots doing so a number of MPs have tabled an amendment that the Commons should insist on the removal of the unfair dismissal qualifying period.

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