Consultation outcome

Ending the employment relationship

This consultation was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

This consultation has concluded

Download the full outcome

Detail of outcome

Summarises responses to the consultation questions and provides the government response. Focuses on settlement agreements.

Original consultation

This consultation ran from 14 September 2012 12:00am to
24 November 2012 11:45pm

Summary

Consultation on ways to support the use of settlement agreements and changes to the compensatory award limit in unfair dismissal cases.

Documents

Ending the employment relationship: consultation

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Unfair dismissal compensatory awards: impact assessment

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Facilitating settlement agreements: impact assessment

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Consultation description


Through the Employment Law Review, the government has been looking at ways to improve the efficiency and effectiveness of the British labour market. The review is looking at all aspects of employment-related law and all stages of the employment life cycle.

In this part of the review, the government is considering employment relationships that are not working out and what the State can do to support the parties to make informed decisions and give more certainty about outcomes when the parties separate.

The consultation covered two issues:

  • Ways to encourage the use of settlement agreements as a means of coming to a consensual agreement, allowing both parties to avoid the costs and stresses of a tribunal case

  • Changing the limit of the compensatory award in unfair dismissal cases to give employers more certainty about their potential liability and give employees more understanding of the value of unfair dismissal claims

Download the consultation