Ending the employment relationship
Consultation on ways to support the use of settlement agreements and changes to the compensatory award limit in unfair dismissal cases.
Through the Employment Law Review, the government has been looking at ways to improve the efficiency and effectiveness of the British labour market. The review is looking at all aspects of employment-related law and all stages of the employment life cycle.
In this part of the review, the government is considering employment relationships that are not working out and what the State can do to support the parties to make informed decisions and give more certainty about outcomes when the parties separate.
The consultation covered two issues:
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Ways to encourage the use of settlement agreements as a means of coming to a consensual agreement, allowing both parties to avoid the costs and stresses of a tribunal case
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Changing the limit of the compensatory award in unfair dismissal cases to give employers more certainty about their potential liability and give employees more understanding of the value of unfair dismissal claims