New Clause 2 - Confidentiality of negotiations before termination of employment
Enterprise and Regulatory Reform Bill
2:15 pm

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‘After section 111 of the Employment Rights Act 1996 insert—

“111A Confidentiality of negotiations before termination of employment

(1) In determining any matter arising on a complaint under section 111, an employment tribunal may not take account of any offer made or discussions held, before the termination of the employment in question, with a view to it being terminated on terms agreed between the employer and the employee.

This is subject to the following provisions of this section.

(2) Subsection (1) does not apply where, according to the complainant’s case, the circumstances are such that a provision (whenever made) contained in, or made under, this or any other Act requires the complainant to be regarded for the purposes of this Part as unfairly dismissed.

(3) In relation to anything said or done which in the tribunal’s opinion was improper, or was connected with improper behaviour, subsection (1) applies only to the extent that the tribunal considers just.

(4) The reference in subsection (1) to a matter arising on a complaint under section 111 includes any question as to costs, except in relation to an offer made on the basis that the right to refer to it on any such question is reserved.

(5) Subsection (1) does not prevent the tribunal from taking account of a determination made in any other proceedings between the employer and the employee in which account was taken of an offer or discussions of the kind mentioned in that subsection.”’.—(Norman Lamb.)

Brought up, and read the First time.

Question put, That the clause be read a Second time.

The Committee divided: Ayes 9, Noes 7.

Question accordingly agreed to.

New clause 2 read a Second time.

Amendment proposed to new clause 2: (a), at end of first sentence of new section 111A(1), leave out ‘the employee’ and insert

‘, the employee or either one of the following chosen employee representatives—

(a) a trade union official;

(b) a workplace representative; or

(c) a legal representative.’.—(Ian Murray.)

Question put, That the amendment be made.

The Committee divided: Ayes 7, Noes 9.

Question accordingly negatived.

Amendment proposed to new clause 2: (b), at end of new section 111A(5) add—

‘(6) The Secretary of State shall review the operation of Clause 111A [Confidentiality of negotiations before termination of employment] after 12 months and shall confirm its continuation through an affirmative resolution of both Houses of Parliament.’.—(Ian Murray.)

Question put, That the amendment be made.

The Committee divided: Ayes 7, Noes 9.

Question accordingly negatived.

New clause 2 added to the Bill.