Differing interpretations of the meaning of Section 147 of the Equality Act 2010 have resulted in employers and employees being reluctant to use compromise contracts as a means of settling discrimination disputes at work. Therefore the government has decided to amend Section 147 to clarify its meaning.
The Equality Act 2010 (Amendment) Order 2012 (SI number 334) was laid before Parliament on 13 February with a coming into force date of 6th April 2012. The amendment makes clear that a person in a discrimination dispute with their employer or former employer can seek the advice of their own lawyer before signing a compromise contract with the employer to settle the dispute. The original wording of Section 147 achieved this, but the amendment makes the meaning clearer, and will restore confidence in using compromise contracts as an option for dispute resolution in the workplace.
This Impact Assessment considers the effect of the clarification.
Date: Mon Feb 13 15:57:32 GMT 2012