From the summer, compromise agreements shall no longer be known as compromise agreements! Their new name shall be Settlement Agreements.
The name change has been brought about by a Code of Practice (Settlement Agreements Code) which shall be in force from this summer (the exact date has yet to be confirmed).
The Code will;
• Provide guidance on the use of settlement agreements.
• Include a reference in the Code to allowing employees to be accompanied at settlement agreement discussions. However, the Code recognises that there is no statutory right to accompaniment in settlement agreement discussions.
• Specify ten calendar days as the minimum time period to consider the formal written offer on which independent advice must be obtained.
The Code will be accompanied by non statutory guidance that will include template letters and advice.