Proposed legal change to establish verified CIPD members as authorised advisers on settlement agreements
Employment Rights Bill amendment would help employees access advice and ease dispute resolution bottlenecks for small British businesses
Employment Rights Bill amendment would help employees access advice and ease dispute resolution bottlenecks for small British businesses
Working with Labour peer Lord Pitkeathley, the CIPD has proposed an amendment to the Employment Rights Bill that would ease pressure on Britain’s dispute resolution system.
The proposal would enable CIPD members operating as independent HR consultants to complete additional, specialist training and professional development (on top of the CIPD’s usual membership requirements), that would authorise them to advise on settlement agreements. The targeted amendment – currently numbered 132 – is expected to be debated in the House of Lords this week, during the bill's current committee stage.
"Our proposal would improve access to professional support, increase capacity in the dispute resolution system and promote the value and expertise that professional HR consultants can provide.”
The government's economic impact assessment predicts a 15% rise in employment tribunal claims from measures in the bill once implemented, likely creating a corresponding increased demand for settlement agreements.
If incorporated into law, this proposed change would expand the list of professionals legally permitted to provide settlement agreement advice, which is currently restricted to qualified solicitors, certified trade union officials, or advisers from recognised advice centres.
By increasing capacity within the dispute resolution system, the proposed amendment would make it easier for employees – particularly those in small businesses without access to union representation – to obtain affordable expert advice when entering into legally binding settlement agreements.
By recognising trained and verified CIPD members as authorised advisers, the amendment would:
For CIPD members working as independent consultants, this change would formally recognise their expertise alongside other established advisers in the legal framework and allow them to use their extensive expertise to support employees with settlement agreements.
All CIPD members are already bound by our Code of Conduct and Ethics, which requires them to commit to continuing professional development to keep their practice up to date and in line with professional standards.
If approved by the House of Lords or agreed to by government, this new proposal would see the CIPD develop an extra level of specialist training for consultants interested in taking on this specialist role. Approved consultants would be required to undergo ongoing training and development to ensure they have the necessary skills and knowledge to effectively advise employees on settlement agreements.
"This is significant for anyone working independently and anyone considering it. It quite rightly recognises the many skills HR professionals have and enables us to support individuals – and, by extension small businesses, at a distressing time."
The amendment originated from a proposal by Ruth Cornish, director and founder of Amelore and a Chartered Fellow of the CIPD, as part of CIPD research into labour market enforcement in 2020. The proposed amendment was discussed at a recent focus group with CIPD members, who confirmed that the proposal would not only give those working in small businesses a practical and cost-effective option for dispute resolution, but also carry the benefit of enhancing members’ professional credibility.
“This is a practical and cost-effective option that will benefit those working in SMEs and enhance the profile and professional credibility of CIPD members”.
The proposed amendment forms part of the CIPD’s broader efforts to inform the implementation of the Employment Rights Bill.
Throughout the bill's passage, we have been working closely with policymakers, championing the important role of the people profession, and advocating for genuine consultation on potentially challenging measures for employers – including new day one employment rights, probation periods, and complex new rules around zero and low hours contracts.
“Amendments like this aren’t often voted on during this stage of a bill, but a debate will clearly highlight to the government the need for action and the expertise that professional HR consultants can offer in support.”
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