- Under the proposals if the worker accepts the deal it will become legally protected so it cannot be used later as evidence in any court case or tribunal.
- Officials insist the move is fair to employees as they are not obliged to take the package and also incentivises bosses to offer a good package, which can include a binding promise of a favourable reference.
- Mr Cable will also consult on plans to change the limit on unfair dismissal payouts to a maximum of 12 months' salary or set it at an even lower figure.
- He wants to reduce the current £72,300 cap significantly in the hope of encouraging small businesses to start hiring more staff.
More top news
Tesco faced potential prosecution after admitting overstating its profits in 2014 in an attempt to exaggerate the health of the business.
The female runner almost collapsed towards the end of a half-marathon - but still completed the race with a helping hand or two.
South African anti-apartheid leader Ahmed Kathrada has died at the age of 87.