Articles
Effecting Compromise Agreements under The Equality Act 2010
The Law Society has drawn attention to an apparent drafting error relating to who can advise those who are compromising potential claims under The Equality Act 2010. A compromise agreement, if properly executed, prevents such claims being made. One of the formalities is that the potential claimant must receive advice on the terms of the settlement from an "independent advisor".
Under other employment legislation the independent advisor must be a qualified lawyer or other person (including Legal Executives employed by solicitors' practices) who is certified as competent to give such advice. The advisor must not, of course, have been involved in advising the employer on related matters. The Equality Act, however, is worded differently and the natural construction of s.147(5)(d) appears to preclude any professional who has advised the employee or potential claimant at an earlier stage in negotiations from acting as the independent advisor in relation to the compromise agreement, once a settlement is reached.
This bizarre result cannot have been intentional and the Law Society has raised the issue with the government, for possible amendment to the wording of the EA 2010. Meanwhile, the risk can be averted by insisting that a different lawyer finalises advice to the potential claimant where Equality Act claims are covered by a compromise agreement.
For more information on the above or for advice on any other employment issue please contact our employment department on 020 7354 3000 or e-mail employment@colmancoyle.com
Author Profile: Linda Quinn, Associate
Date: November 2010