Jessica O'ConnorThe Chartered Institute of Personnel and Development (CIPD), in collaboration with Labour peer Lord Pitkeathley, has proposed an amendment to the Employment Rights Bill that aims to alleviate mounting pressure on the UK’s dispute resolution system.
The proposed amendment, currently listed as Amendment 132, is set to be debated in the House of Lords this week as the bill proceeds through its committee stage.
If approved, the change would enable CIPD members working as independent HR consultants to undergo additional specialist training, beyond the standard requirements for membership, that would allow them to advise employees on legally binding settlement agreements.
Ben Willmott, head of public policy at the CIPD, said: “Our proposal would improve access to professional support, increase capacity in the dispute resolution system and promote the value and expertise that professional HR consultants can provide.”
This move comes in response to the Government’s own economic impact assessment, which anticipates a 15% increase in employment tribunal claims following the bill’s implementation.
Such a rise is expected to drive greater demand for settlement agreements, which currently require advice from qualified solicitors, certified trade union officials, or advisers from recognised advice centres.
By expanding the list of professionals who can legally provide this advice, the amendment seeks to give employees – particularly those in small and medium-sized enterprises (SMEs) – greater access to affordable expert guidance.
The CIPD believes the proposed change would increase the system’s capacity, reduce barriers to resolving workplace disputes, and offer a cost-effective alternative to costly tribunal proceedings.
For independent HR consultants, the amendment also offers an opportunity for professional recognition. Those approved would gain the authority to advise on settlement agreements, thereby formalising their role within the legal framework alongside other recognised advisers.
All CIPD members are already held to a rigorous Code of Conduct and Ethics, which includes a commitment to ongoing professional development.
Under the proposed amendment, those seeking to take on this new role would be required to complete additional specialist training and maintain continued development in order to remain qualified.
Ruth Cornish FCIPD, director and founder of Amelore, said: “This is significant for anyone working independently and anyone considering it. It quite rightly recognises the many skills HR professionals have and enables us to support individuals – and, by extension small businesses, at a distressing time.”
Cornish originally proposed the amendment as part of CIPD’s research into labour market enforcement in 2020.
It has since been refined and tested through discussions with CIPD members, who confirmed its potential to enhance dispute resolution options for small businesses while also raising the professional credibility of CIPD members.
Jill Bottomley FCIPD, managing director of People Curve Consultancy, added: “This is a practical and cost-effective option that will benefit those working in SMEs and enhance the profile and professional credibility of CIPD members.”
