As has been widely reported in the press, them much vaunted Equality Act came into force on the 1st October, consolidating and extending discrimination law to cover the be ‘Protected Characteristics’ of Age, disability, marriage and civil partnership, sex, gender reassignment, pregnancy and maternity, sexual orientation, race, religion or belief.
One unexpected aspect of the Equality Act is section 147 (5) which states that for the purposes of finalising Compromise Agreements, the employee's "independent adviser" cannot be "(a) a person who is a party to the contract or the complaint.... (d) a person who is acting for a person within paragraph (a)...in relation to the contract or the complaint...". Some commentators are concerned that that this suggests that a solicitor negotiating terms of severance cannot also be the employee’s "independent adviser" to settle Equality Act claims in compromise agreements.
This seems both surprising and (apparently) un-intended. It could mean that a solicitor who negotiates a better deal on behalf of an employee, has to then send them off to an unconnected law firm to then finalise the Compromise Agreement.
In any event employers should overhaul their standard compromise agreements and advisers certificates in the light of the new Act. Do let us know if you would like any further advice on this or anything else.
James Carmody
RECULVER SOLICITORS
www.reculversolicitors.co.uk
Regulated by the Solicitors Regulation Authority: Firm 405070
Principal: James Carmody
Consultant: Carol Aylott
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