Settlement Agreement Assistance

What is a Settlement Agreement?

A Settlement Agreement is an agreement that legally binds you and your employer. 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).

It can be offered by your employer 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 employer agreed to. It can also include confidentiality clauses to keep the specifics of the agreement confidential. You as the employee are required to have an ‘adviser’ when signing the Agreement.

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.

However, ACAS is a neutral and external mediator, meaning that it cannot provide any legal advice or discuss possible merits.

How can Sharper-Labs Legal Team help? 

Our legal team can help you fully understand the Settlement Agreement or the Cot3 Agreement, on its terms and possible consequences.

• Such as the taxation of settlement payments
• Whether the agreement meets statutory requirements

Sharper-Labs can represent you more directly in the process of reaching a Cot3 agreement. Since the ACAS conciliator cannot provide you with any advice, we will be the specialist to guide you in accepting this agreement or making any other proposals for your merit.