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Posted by on in Termination of Employment
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CIPD questions effectiveness of ‘settlement agreements’

As the Government’s consultation on ending the employment relationship draws to a close, the Chartered Institute of Personnel and Development (CIPD) has voiced reservations about proposals to introduce ‘settlement agreements’, designed to make it easier for employers to dismiss underperforming employees without fear of employment tribunals.

Mike Emmott, employee relations adviser at the CIPD, said: “There is a real danger that a measure intended to make things easier for employers could cause unnecessary arguments about what does and does not constitute a fair and legal approach to broaching the topic of poor performance with a member of staff.

“There are existing, well-used routes to managing poor performance, and effort would be better spent ensuring more employers understand and are able to make use of them. The reality is that many employers already make use of compromise agreements as a basis for terminating employment - and those that need more confidence to do so will be no more empowered by settlement agreements.”

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