The UK government has launched a consultation on “protected conversations” to assess how to enable employers and workers to discuss difficult situations without fear of legal action.

Under the current rules, employers who attempt to discuss performance or retirement issues can face potential discrimination claims from employees, because such subjects are often legal grey areas.

The government hopes that the consultation will lead to a clarification of the law, providing improved guidelines for both parties.

Said Prime Minister David Cameron, “We want businesses to create jobs. But if employers are so concerned about the prospect of being taken to tribunal that they don’t feel they can have frank conversations with their employee, many companies just won’t feel able to create those jobs in the first place.

"We will be consulting on the introduction of protected conversations, so a boss and an employee feel able to sit down together and have a frank conversation - at either's request."

Under the proposed system, both parties could agree to have a difficult conversation “without prejudice” – that is, without fear that anything said in such a conversation being could be used as a reason for legal action at a later date.