Pre-termination negotiations and settlement agreements: keep calm and carry on?

From 29 July 2013, discussions held between an employee and employer about termination of employment with a view to employment being terminated on agreed terms (referred to as pre-termination negotiations) are inadmissible as evidence in ordinary unfair dismissal claims.

According to the prime minister, this new law has been introduced so that ‘a boss and an employee feel able to sit down together and have a frank conversation — at either’s request’.

The protection is lost where there is ‘improper behaviour’ including ‘undue pressure’. Litigation is almost inevitable over where the line is to be drawn between ‘improper behaviour’ and poor practice…

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