Trade Union Reform and Employment Rights Act 1993

Wages Act 1986 (c. 48)

3 In section 6 of the Wages Act 1986 (remedies for Part I contraventions and restriction on contracting out)—

(a) in subsection (3) after the words “apply to” there shall be inserted “(a)” and at the end of the words so constituted paragraph (a) there shall be inserted the words “; or

(b) an agreement to refrain from presenting or continuing with a complaint if the conditions regulating compromise agreements under this Part of this Act are satisfied in relation to the agreement”; and

(b) after subsection (3) there shall be inserted—

“(4) The conditions regulating compromise agreements under this Part of this Act are that—

(a) the agreement must be in writing;

(b) the agreement must relate to the particular complaint;

(c) the worker must have received independent legal advice from a qualified lawyer as to the terms and effect of the proposed agreement and in particular its effect on his ability to pursue his complaint before an industrial tribunal;

(d) there must be in force, when the adviser gives the advice, a policy of insurance covering the risk of a claim by the worker in respect of loss arising in consequence of the advice;

(e) the agreement must identify the adviser; and

(f) the agreement must state that the conditions regulating compromise agreements under this Part of this Act are satisfied.

(5) In subsection (4)—

• “independent”, in relation to legal advice to the worker, means that it is given by a lawyer who is not acting in the matter for the employer or for a person who is connected with the employer; and

• “qualified lawyer” means—

  (a)

  as respects proceedings in England and Wales—

  (i)

  a barrister, whether in practice as such or employed to give legal advice, or

  (ii)

  a solicitor of the Supreme Court who holds a practising certificate;

  (b)

  as respects proceedings in Scotland—

  (i)

  an advocate, whether in practice as such or employed to give legal advice, or

  (ii)

  a solicitor who holds a practising certificate.

(6) For the purposes of subsection (5) any two persons are to be treated as “connected” if one is a company of which the other (directly or indirectly) has control, or if both are companies of which a third person (directly or indirectly) has control.”.