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COT3 Agreements

A COT3 Agreement is a legally binding agreement which is drafted by ACAS once parties have agreed to settle an Employment Tribunal claim. These agreements can be drafted during the course of Early Conciliation, that is before any claim has been lodged with an Employment Tribunal, or in the course of settlement discussions after a claim has been raised.

Once parties have agreed terms of settlement then the ACAS officer will input these terms into the agreement. The required terms are:

  1. The settlement sum, i.e. the sum of monies to be paid to the Claimant/employee in full and final settlement of the claim;
  2. The time period by which payment will be made- this can be between 14 and 28 days, preferably 14 days;
  3. Both parties agree to keep the terms of the agreement confidential; and
  4. Both parties agree not to make any derogatory or defamatory statements about the other.

ACAS will normally send the pro forma initial draft and it is up to either party of they wish to include any other terms. For the Claimant, they may wish that agreed wording for a reference is attached to the Agreement.

Once both parties agree with the terms of the agreement then they should sign same. Both parties will have an original copy of the agreement to retain for their records.

If the Respondent or employer fails to make payment of the agreed sum then the employee/Claimant can enforce the agreement by instructing Sheriff Officers.

If a Claimant/employee fails to abide by their obligations detailed in the agreement then the Respondent/employer can refuse to pay the sums agreed or recover the sums as a debt. It is important for a Claimant/employee to be aware of their obligations and consider seeking independent legal advice.

Contact The Glasgow Law Practice

Our Employment Solicitors have experience in negotiating and advising client regards the terms of COT3 Agreements and Settlement Agreement. For an informal discussion please contact lb@theglasgowlawpractice.co.uk or ss@theglasgowlawpractice.co.uk.