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<p>In the last five years, the House of Commons has signed a number of settlement
agreements with employees (formerly known as compromise agreements). In some cases,
the House has reached agreements with individuals through ACAS, which are equivalent
to settlement agreements but known as COT3 agreements. The majority of these have
brought the employment contract to an end, although there have been a small number
of in-employment settlements.</p><p>The figures inclusive of all of settlement and
COT3 agreements for each of the last five years are:</p><ul><li>2017 – 8 agreements</li><li>2016
– 15 agreements</li><li>2015 – 5 agreements</li><li>2014 – 14 agreements</li><li>2013
– 11 agreements</li></ul><p><br>Confidentiality clauses are included in all or almost
all of these agreements. Confidentiality clauses are intended to protect both the
employer and the employee, as well as to ensure that the content of the settlement
agreement itself is not discussed (so, for example, neither side will reveal how much,
if any, money was paid under the agreement). An agreement will often include an agreed
reference or public statement from the employer about the employee, and the confidentiality
agreement will state that the only comment made by either party will be in the specified
form.</p><p>Since January 2015 such clauses have no longer been included as a matter
of course. Each case is considered on its merits. Reasons for including a confidentiality
clause can include: supporting an individual to leave in a dignified manner; not publicly
undermining managers who have been involved in the case; and discouraging similar
future claims.</p><p>The House’s approach to confidentiality clauses follows the 2015
Cabinet Office Guidance on Settlement Agreements, Special Severance Payments and Confidentiality
Clauses on Termination of Employment. They also follow this guidance with respect
to protected disclosures (“whistleblowing”). Any provision in a settlement agreement
which seeks to prevent protected disclosures is unenforceable, and since 2015 this
has been made explicit with the following statement added to all agreements: “nothing
in this Agreement is intended to prejudice the Employee’s rights related to protected
disclosures”. All employees who sign settlement agreements receive advice on the contents
of the agreement from an independent lawyer or an independent trade union official,
for which the House pays.</p>
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