Settlement Agreement Assistance

What is a Settlement Agreement? 

A Settlement Agreement is an agreement that legally binds you and your employee. In order for it to be legally binding, it must be signed by a solicitor or a certified trade union/adviser with insurance. It must also meet other statutory requirements. It is usually offered when terminating employment, but it can also be used during employment (for disputes).

You may wish to reach a Settlement Agreement with your employee on matters such as

• Redundancy payment
• Resolution of a dispute/employment claim
• Confidentiality of the dispute

The Agreement usually contains a financial agreement that lays out a clear amount of payment that both you and the employee agreed to. It can also include confidentiality clauses to keep the specifics of the agreement confidential. You may wish to invite an external mediator who has expertise in employment law to review the settlement.

What is a COT3 Agreement? 

A COT3 Agreement is drawn up for a similar purpose to a Settlement Agreement (to resolve a dispute without resorting to tribunal proceedings) but can be achieved through the involvement of ACAS. It is part of their early conciliation process. It can only be reached during a live dispute and is usually shorter than a Settlement Agreement. It is still legally binding.

How can Sharper-Labs Legal Team help? 

Since an effective settlement agreement or a COT3 agreement puts an end to any claim pursued by an employee, it is important that it meets all the statutory requirements and legal formalities to be valid. Sharper-Labs Legal Team reviews settlement agreements to see whether it covers necessary issues, such as confidentiality and payments.

During the negotiation process, we can help you produce a draft for the agreement, and work through revisions and compromises with your employee. If you are already in the midst of reaching an agreement and are unsure before signing, our legal team can help you fully understand the terms and possible consequences.