Settlement Of Agreement
ACAS can settle employment tribunal claims (and potential claims) through a particular type of agreement called COT3. Parties to a COT3 are not required to be represented by lawyers. With the exception of a transaction contract, a COT3 is the only other legally binding route that a worker can give up/abandon. Confidentiality clauses are common in transaction agreements. They generally mean that the parties promise not to make prejudicial statements about each other. This would prevent you from making damaging comments in the press or on social media about your employer, even if you are telling the truth. It could also prevent you from reporting abuse as whistleblowers. Your lawyer should explain the consequences carefully. > the compensation that can be awarded by the worker to the employer, for example. B regarding the tax treatment of the amounts to be paid under the agreement (see below) The advice they will give you is limited under the terms of the agreement – for example, that you understand what you agree. They will not advise you on whether this is a good agreement or if you could have done better by going to court.
Transaction agreements are not legally binding unless the employee has received independent legal advice. Employers generally agree to pay for your legal fees, but they don`t necessarily cover all of your expenses. A contribution of between $200 and $500 is common. However, if your situation is complex or your lawyer has to negotiate on your behalf with your employers, your legal fees may be higher. Sometimes it`s worth self-financing the extra legal fees to get a better deal. > The worker must have been advised by an independent counsellor (usually a lawyer) on the terms and effects of the proposed agreement and its impact on the worker`s ability to exercise rights before an employment tribunal. Note that this does not require that the independent consultant has an opinion on whether the agreement offered is a good one or if they think the employee should accept it It is important that you understand everything in the agreement, and if there is something you are not able to meet (or a term you have already violated), you should discuss it with your lawyer. Most of the time, it will be by a qualified lawyer, but it could also be a union representative or an adviser with the authority to advise on transaction agreements. It is important that your lawyer review your contract to ensure that you get the maximum amount in the most effective way of tax.
As it is customary for you to provide your employer with tax compensation in the transaction agreement, you must be informed of the tax you must expect if HMRC challenges the payments made under this agreement.