settlement agreement
A legally binding agreement under which parties can agree to end an employment relationship on specified terms, usually including a payment by the employer to the employee. Before such an agreement is settled on, the employer and employee may engage in an informal “off the record” discussion, known as a pre-termination negotiation. This gives employers the freedom to discuss voluntary termination of a contract of employment, usually where an employee is underperforming. Settlement agreements (previously known as compromise agreements) are governed by the Employment Rights Act 1996. They must be in writing, and the employee must have received independent advice from an appropriate and recognized adviser (e.g. a barrister or solicitor, legal executive, trade union official, or advice worker), who must be named within the agreement. The effect of the agreement is that the employee waives his right to make a claim to the employment tribunal on the matters covered in the agreement. Prior to the Enterprise and Regulatory Reform Act 2013, settlement discussions could be conducted confidentially where the without prejudice rule applied. However, this rule did not apply if there was no existing dispute between the employer and employee; in such cases discussions in the course of negotiation could be used as evidence in a later tribunal claim. To encourage the settlement of disputes outside the tribunals, the 2013 Act amends the Employment Rights Act 1996 so that employers and employees can discuss settlement before a dispute arises, knowing that it will remain confidential. Confidentiality does not apply where the employee alleges dismissal for an automatically unfair inadmissible reason. In addition, where either party behaved “improperly” in making or negotiating the offer, the tribunal may consider this as evidence in an unfair dismissal claim. An employer who improperly pressures an employee into entering a settlement agreement should be aware that this can amount to constructive dismissal.

https://www.acas.org.uk/code-of-practice-settlement-agreements

• Code of Practice on Settlement Agreements from the ACAS website

• disentailing deed
• disentailment
• disgorgement damages
• disguised remuneration
• dishonest assistance
• dishonest conduct by tax agents
• dishonesty
• dishonour
• dismissal
• dismissal of action
• dismissal procedures
• disorderly house
• disparagement of goods
• disposal
• disposal of uncollected goods
• disposition
• dispute resolution clause
• disqualification
• dissentiente
• dissolution
• distance selling
• distinguishing a case
• distortion of competition
• distrain
• distress