Legal recognition for HR professionals could transform dispute resolution
Aug 2025
The proposed Employment Rights Bill includes a significant legal reform that would permit verified members of the Chartered Institute of Personnel and Development (CIPD) to act as authorised independent advisers on settlement agreements. These agreements, which are legally binding and used to resolve workplace disputes without resorting to an employment tribunal, currently require sign-off from a solicitor, certified trade union official, or other specified legal professionals. The proposal (Amendment 132 to the bill) would expand this advisory role to include CIPD chartered members and fellows who meet strict verification criteria.
The CIPD has expressed strong support for the proposal, which aims to enhance access to qualified advice, streamline dispute resolution, and acknowledge the growing role of HR expertise in employment matters. This change would offer clear benefits such as faster, more cost-effective settlements and better access to independent advice for employees. However, it also raises important challenges around ensuring consistency, impartiality, and professional integrity in the advice provided. To address these, robust verification, clear professional standards, and comprehensive training will be critical to maintain the credibility and fairness of the settlement process.
If implemented, the reform would mark a significant shift in the intersection between HR and employment law and represent a practical evolution in how employment disputes are handled—empowering qualified HR professionals to play a more formal role in legal resolution processes while maintaining employee protections and procedural fairness.