When is a Compromise Agreement not a Compromise Agreement?

The answer to the above poser is that from 29^th July when, as a result of the implementation of Section 23 of the Enterprise & Regulatory Reform Act 2013, both compromise agreements and compromise contracts will be renamed as “Settlement Agreements”.  How about that for an incisive change in employment legislation!   From the same date Section 14 of the Act will also be implemented which prevents pre-termination negotiations from being referred to in evidence in unfair dismissal claims. 

This latter provision is “interesting” in that this new exclusion is only limited to unfair dismissal and not cases where there is automatic unfair dismissal, discrimination or breach of contract.  The suggestion that particularly litigants in person will understand the distinction, or that the Tribunal will be able to isolate the separate claims, is perhaps optimistic. 

New regulations have also been brought forward which will take effect from 29^th July and which will significantly increase interest on discrimination compensation raising the rate from 0.5% to 8%.  Under a separate order, interest will also now become payable on a Tribunal award unless full payment is made within 14 days after the decision.