This week the Business Secretary, Vince Cable, unveiled the Government’s plans for the strengthening of voluntary agreements between employers and employees, under new rules in the Enterprise and Regulatory Reform Bill.

The changes are considered to be “anti-Beecroft” and are designed to replace the much criticised idea of “no-fault dismissals” as proposed by Adrian Beecroft’s report a few weeks ago.

The previous practice of compromise agreements will be built upon by the new “settlement agreements” legislation, with employers to be given more powers to offer staff immediate payoffs in order to leave their employ.

The logic behind the change is to help employers avoid the longer and more expensive method of formal dismissal and potential employment tribunal cases.

Vince Cable said of the reforms, “Settlement agreements are smart, fair and pro-business which deliver results for the employees and employers. It empowers employers by enabling them to keep their workforce flexible and encouraging alternative ways of solving workplace problems rather than resorting to a tribunal.”