Commencement Order introduces confidentiality of pre-termination negotiations

The Enterprise and Regulatory Reform Act 2013 (Commencement No. 2) Order 2013

The Enterprise and Regulatory Reform Act 2013 (Commencement No. 2) Order 2013 (SI 1648/2013) has been published. The Order brings the following provisions of the Act into force from 29 July 2013: (i) S.14 – confidentiality of negotiations before termination of employment, which provides that, other than in specified circumstances, an offer to terminate the employment relationship on agreed terms is not admissible as evidence in any subsequent unfair dismissal case; and (ii) S.23 which renames “compromise agreements”, “compromise contracts” and “compromises” as “settlement agreements” in all relevant pieces of employment legislation. Acas has produced a Code of Practice on Settlement Agreements (published initially to accompany the Acas response to consultation), which sets out the broad principles covering the use of settlement agreements to accompany the legislation on pre-termination negotiations.

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