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Precisely James. As people will well know, costs for defending a tribunal claim are not recoverable and there is therefore an automatic "nuisance value" to any claim, legitimate or not.

Indeed ACAS will tell employers just that.

But it now seems that if you buy off a claim against you for say £2,000 without admission of liability and with an NDA (as ACAS themselves would automatically include in their standard terms of settlement) then you have comitted professional misconduct.

SO you must either still buy off the claim, but then report yourself to the SRA for something you haven't done, and allow the ex-employee to bleat all over facebook about how much she or he got and how bad your firm is, OR you have to fight the claim to the end no matter how uneconomic it is.

Do you reckon they have thought this through?