The Government has announced a number of employment law changes, including the introduction and implementation of a new statutory code and guidance to encourage greater use of settlement agreements.

Settlement agreements will help resolve workplace disputes without the need to resort to an Employment Tribunal.

Government will not be taking forward proposals to introduce a guideline tariff for settlement agreements, in response to concerns that it could set unrealistic expectations for employees or could be viewed by employers as a maximum from which they would try to negotiate down from.

To provide greater certainty about the maximum liability that can be paid in an individual unfair dismissal claim the Government will introduce a 12 month pay cap on the compensatory award for unfair dismissal. There are no plans to change the overall limit of the cap which currently stands at £72,300.