How are debts owed to family members dealt with in divorce proceedings?
The first question for the court to determine is whether the debts are legitimate, and this is a...
Employers keen to avoid costly employment tribunal cases should face greater protection when new regulations preventing pre-termination negotiations being used as evidence in unfair dismissal cases come into force next week.
That’s according to employment specialists at Black Country law firm George Green LLP, who believe the changes could give employers more confidence to explore potential Settlement Agreements (previously known as compromise agreements) without fear of discussions being used as evidence at subsequent Tribunal hearings.
Tim Lang, head of employment at George Green, explained: “Settlement Agreements are legally binding contracts used to end the employer:employee relationship on agreed terms. Where they are used, employee’s waive their right to make a claim to a court or Employment Tribunal on issues covered by that agreement.
“While negotiations relating to existing employment disputes are often undertaken on a ‘without prejudice’ basis - meaning they can’t be used as evidence in subsequent court or Tribunal hearings - the same rules have not applied where there was no pre-existing dispute.
“Under the new rules, which come into force on 29 July, employees who fail to reach a Settlement Agreement will still be able to bring a Tribunal claim but, where that claim relates to unfair dismissal, Settlement Agreement negotiations will not be admissible as evidence.”
According to the latest figures from the MInistry of Justice*, 31% of the 186,300 Employment Tribunal cases disposed of during 2011/12 were unfair dismissal claims. Of those, just 8% were successful at a hearing, with 42% being resolved through ACAS conciliation and the remainder being either unsuccessful (10%), withdrawn (24%), struck out (9%), dismissed at a preliminary hearing (3%) or awarded by default judgement (3%).
The median payout awarded for successful unfair dismissal claims was just £4,560.
Tim continued: “Given the time and expense of resolving unfair dismissal claims through the courts and the relatively low claimant success rate and payout values, it makes sense for all parties to explore the potential for Settlement Agreements in the first instance.
“The legal changes that come into force next week should offer employers a greater level of protection in that process; making it easier for them to hold open discussions without the fear that those negotiations could come back to bite them at a later date.”
*Employment Tribunal and Employment Appeal Tribunal statistics (GB) 2011/12 (published September 2012)