CIPD warns over settlement agreements

Proposals which would make it easier for employers to dismiss poorly performing staff without the threat of employment tribunals could create “unnecessary arguments”, the Chartered Institute of Personnel and Development (CIPD) has warned. The CIPD said there was a real danger that settlement agreements could lead to disputes over what does and does not constitute a fair and legal approach to bringing up poor performance at work. Mike Emmott, employee relations adviser at the CIPD, said that the existing routes to tackling under-performance were well used. He added that effort would be better spent making sure employers understand and are able to make use of them. Mr Emmott said that the Government should work to promote and protect good practice if it decides to go ahead with the settlement agreement proposals. He added that employers should be required to have used proper performance management practices before settlement agreements are offered. In a further bid to promote good practice, Mr Emmott said the Acas Code and guidance on disciplinary procedures could be altered instead of a separate code being introduced for settlement agreements.

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