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Acas to write new Code on Settlement Agreements

Monday 17 September 2012

Acas has welcomed the Department for Business, Innovation and Skills' (BIS) request for it to write a new Code of Practice on Settlement Agreements.

The Code will give clear and reliable guidance on how to handle these agreements in a fair way and it will be taken into account in employment tribunal decisions.

Acas Chair, Ed Sweeney, said:

"We are pleased that BIS has asked Acas to draft a new Code of Practice for employers and employees. This recognises our knowledge, expertise and excellent reputation in employment relations. By referring to a clear and straightforward Code, employers and employees can be confident that they will know how to handle the termination of an employment relationship fairly."

BIS has also published evidence from its consultation on the Acas Code on Discipline and Grievance. The overall response to the Code was positive, with most respondents thinking its principles and language are fit for purpose. However, Acas looks forward to working with BIS on reviewing the responses and to providing guidance specifically for small firms.

Notes for editors

  1. Acas' aim is to improve organisations and working life through better employment relations. It provides information, advice, training and a range of services working with employers and employees to prevent or resolve problems and improve performance. It is an independent statutory body governed by a Council consisting of the Acas Chair and employer, trade union and independent members.
  2. Work to begin drafting the new Code on Settlement Agreements will start shortly and Acas will be consulting with stakeholders in readiness for the necessary employment law changes when they come into effect.
  3. For media enquiries please contact Clare Carter/Shumon Rahman, PR and Media Manager (job share) on 0207 210 3688 or Lou Owen, Media and Marketing Officer on 0207 210 3920. For out of hours media enquires, contact the duty press officer on 07825 691093.