The proposals will be part of plans for ‘settlement agreements’ in the Bill, which will build on the previous practice of offering compromise agreements.

Under the reform, such offers will be inadmissible as evidence in unfair dismissal claims.

Employers could offer staff cash to leave, although employees are free to refuse the offer and take their case to a tribunal with their employment rights are unaffected.

Payoffs could be offered in the form of a letter to the employee and include details on what kind of payment could be expected. However, the government stressed that settlement agreements should not replace proper performance management.

The idea is to help employers avoid the longer and more costly method of formal dismissal and potential employment tribunal cases.

Source: www.peoplemanagement.com