Settlement Agreements: what’s in a name
Another change which came into force on 29 July 2013 was the introduction of Settlement Agreements.
As the Settlement Agreement is simply a Compromise Agreement with a shiny new name, the change is largely cosmetic; however, any employers accustomed to using a precedent Compromise Agreement should use this as an opportunity to give the document a bit of a tune-up. Not only should the name change, but references to the statutory conditions permitting Settlement Agreements need to be updated as well.
Employers looking to use Settlement Agreements as part of Pre-Termination Negotiations should also be alive to the fact that specific rules apply, such as a period for acceptance.