Nick Clegg in good idea shock!

Posted by: Simon / 15.11.2011

One of the many suggested reforms of UK employment law at the moment (recently suggested by Nick Clegg) is the introduction of "protected conversations" - an off-the-record conversation between employer and employee which may or may not lead to the employee leaving the company, but the contents of which could not be used (by either side) in any tribunal or  other legal dispute.


The sort of thing that it's intended to cover is a situation where an employer has a problem with an employee - let's call him Bill - and says "Bill, as you know we've spoken about your performance/attendance/attitude over the last few months and it unfortunately it hasn't improved. We're now at the point where we need to start disciplinary/capability proceedings which might ultimately lead to your dismissal. However, we are prepared to discuss with you, in a protected conversation, a way which would allow you to leave with some form of settlement, which will avoid us having to take this action. Have a think about it over the next 24/48 hours and if you wish to discuss it further we will be happy to."


Bill then has a choice whether or not to go down the formal process or to negotiate a settlement through a Compromise Agreement. If he chooses the latter and a settlement can't be agreed then none of the discussion is permissible as evidence if he later makes a tribunal claim.


Now some of you reading this might ask how this is different to the current "without prejudice" discussions that employers often have employees. In practice, the answer is probably nothing, although some of legal friends will point out that many conversations that are described as "without prejudice" in these situations don't strictly fall into the definition and technically could be used in legal proceedings.


So, provided the regulations are sensibly drafted, ensuring for example that both the employer and employee have to agree that a conversation is protected, the changes might just be the law catching up with what happens anyway in the real world, but under a more user friendly title. Next thing you know, someone will suggest renaming Compromise Agreements as something like "Compensated No-fault Dismissal"...

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