Trade Union Reform and Employment Rights Act 1993

2 In section 72 of the Race Relations Act 1976 (validity, etc. of contracts)—

(a) in subsection (4), after paragraph (a) there shall be inserted—

“(aa) to a contract settling a complaint to which section 54(1) applies if the conditions regulating compromise contracts under this Act are satisfied in relation to the contract;”; and

(b) after subsection (4) there shall be inserted—

“(4A) The conditions regulating compromise contracts under this Act are that—

(a) the contract must be in writing;

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

(c) the complainant must have received independent legal advice from a qualified lawyer as to the terms and effect of the proposed contract 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 complainant in respect of loss arising in consequence of the advice;

(e) the contract must identify the adviser; and

(f) the contract must state that the conditions regulating compromise contracts under this Act are satisfied.

(4B) In subsection (4A)—

• “independent”, in relation to legal advice to the complainant, means that it is given by a lawyer who is not acting for the other party or for a person who is connected with that other party; 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.

(4C) For the purposes of subsection (4B) 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.”.