Employment Rights Bill amendment; Proposed legal change to establish verified CIPD members to act as authorised advisers on settlement agreements

In early 2020 Ruth wrote a paper for the CIPD to try and convince them to lobby the UK Government to amend the law to allow independent HR consultants to give advice on, and indeed, provide sign off on settlement agreements.

 This has now been acted upon. Just last month the CIPD announced it has backed an amendment to the Employment Rights Bill which would enable CIPD members, operating as independent HR consultants, to complete additional, specialist training and professional development that would authorise them to advise on settlement agreements. During this announcement the CIPD urged policymakers to grant formal recognition to its accredited specialists to help resolve workplace disputes more quickly, cost effectively and accessibly.

This is a momentous event, and indeed one of the first times CIPD has ever achieved such a feat, not least because one has to be invited by the government to progress such an amendment.

The targeted amendment, proposed by Labour peer Lord Pitkeathley – and numbered 132 – was debated in the House of Lords on Tuesday 3rd June 2025.

Whilst the amendment was debated and then withdrawn by Lord Pitkeathley, in line with convention, it received significant debate in the House of Lords and was supported by individual lords from the three main parties. In response, the government’s spokesperson said they were happy with the law as it stands, but would be willing to continue to discuss the issue. This is a great first step.
 
The CIPD will now be looking to speak to the Employment Rights Minister, to see whether there is scope to look at this issue as part of the government’s wider work to reform the enforcement system.

Both Ruth, who originally suggested the amendment, and the CIPD agree that expanding the pool of recognised advisers is likely to ease pressure on the legal system and offer a more accessible and cost-effective alternative to litigation.

The CIPD has more than 15,000 self-employed HR consultant members across the UK, many with considerable expertise in employment law. They say that certifying just a third of them would add around 5,000 new advisers. This would be a major boost in capacity and offer a more affordable route for SMEs in the UK.

Let’s look at some of the benefits in more detail:

 Cost. The advice given, and the cost of drawing up a Settlement Agreement can be as little as one third of the cost of a solicitor. This will be a gamechanger for many small businesses who can't afford substantial legal fees. This could ease the financial burden on small businesses that cover or contribute to the cost to help facilitate a smoother exit.

 More choice of advisors. The world of settlement agreements is dominated by the legal profession. Employees who are non-Trade Union members currently have to seek out a legal advisor, but this change will mean that consumers should have more choice at their fingertips and more autonomy to make their own decisions.

 Greater trust. Familiarity and trust between HR advisor and the individual are key. This change will mean individuals can build a greater rapport with their HR adviser and give them reassurance they are in the capable hands of someone who will support them long term throughout the whole process.

 Flexibility. With more choice and access to a wider network of advisors, individuals can more quickly and easily access the advice they need and bring their dispute to a conclusion.

 This amendment also recognises the multifaceted skills HR professionals have in their wheelhouse and reminds us of the fact that they know the realities of the workplace better than anyone else.

 Ruth, and our team here at Amelore, are pleased this amendment is finally moving forward. Quite clearly with passion, drive and perseverance, change can happen.

 To find out more on the amendment and next steps, why not take a look at this CIPD article which explains more:  https://tinyurl.com/5be7bu9z

 This change is part of a bigger vision that Ruth has for how the world of HR could operate to better service individuals and businesses. Watch this space for more about this.

A big congratulations to Ruth for taking the initiative and proposing a change in the law.  And for proposing something that will create choice and options for many.