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. A compromise agreement, now called a „transaction agreement,“ is a legally binding negotiated agreement between you and your employer. As a general rule, it provides for severance pay from your employer, for which you agree not to assert your rights in an employment tribunal. There are many other conditions that you will find in a compromise agreement and, because of their complete and final nature, you must bear that your interests are properly protected when negotiating the agreement. Otherwise, there is no turning back. Similarly, all the time being wasted and potential legal fees – why not suggest you pay this now in a settlement contract and you will leave quietly? High goal, but willing to compromise. To reach an agreement, both sides must feel that the agreement is right. Probably! But this information does not replace technical legal advice on your situation.
If you would like additional advice or if you intend to obtain a transaction agreement, contact Truth Legal to agree to a free, non-binding consultation with a lawyer. This means that the draft agreement is „off the mark“ and cannot be presented to a court as evidence of a confession against one of the parties. The legal concept „without prejudice“ is based on the principle that it is useful for the parties to speak freely when trying to reach an agreement. If they know that everything they say in these discussions cannot be used as evidence against them, then it allows the parties to be more open. After you sign your contract, you will usually receive a financial payment and quit your job. You must ensure that the transaction agreement specifies that you receive your regular salary and benefits until the termination date. However, as a general rule, if you sign a transaction agreement, you should consider that it is a feature of everything that has happened between you and your employer and that you cannot assert rights against them. A big thank you to James Johnson at the Smith Partnership and the support of Alexandra Bullmore who guides me in my transaction contract. You may be able to negotiate a transaction amount for personal injury.