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In the United Kingdom, a compromise agreement [1] is a specific type of contract, regulated by statute, between an employer and its employee (or ex-employee) under which the employee receives consideration, often a negotiated financial sum, in exchange for agreeing that he or she will have no further claim against the employer as a result of ...
Wrongful dismissal: in particular, a termination by the employer in breach of the employee's contract of employment (in other words a dismissal without notice, where the employer is obliged to give notice) is described as "wrongful dismissal", and not as unfair dismissal.
The 1998 act inserted the right under the Employment Rights Act 1996 section 203(5) which allows parties to a dismissal case to agree in writing that the dispute be referred to arbitration. This can result from a settlement negotiation of an ACAS conciliation officer. ACAS will supply, though not appoint, an arbitrator.
A wrongful dismissal can be a fair or unfair dismissal, just as an unfair dismissal may or may not be a wrongful dismissal in terms of whether the correct notice was given. If the employee had two year's service he could claim unfair dismissal if there was something wrong with the decision to dismiss as opposed to the length of notice.
A less severe form of involuntary termination is often referred to as a layoff (also redundancy or being made redundant in British English). A layoff is usually not strictly related to personal performance but instead due to economic cycles or the company's need to restructure itself, the firm itself going out of business, or a change in the function of the employer (for example, a certain ...
ACAS is the primary arbitration service for disputes in UK workplaces. Chapter I, sections 178 to 187, involves the ground rules for collective bargaining. Section 179 provides that a collective agreement is deemed to be not legally enforceable unless it is in writing and contains an explicit provision asserting that it should be legally ...
The Settlement Agreement is a new concept which replaces the former "Compromise Agreement". Section 111A(2) of the ERA 1996 (as amended) provides for "Pre-termination Negotiations" that are: "any offers made or discussions held, before the termination of the employment in question, with a view to it being terminated on terms agreed between the ...
The Advisory, Conciliation and Arbitration Service (Acas) is a non-departmental public body of the Government of the United Kingdom. Its purpose is to improve organisations and working life through the promotion and facilitation of strong industrial relations practice.