COT 3 settlement agreement meaning

A COT3 settlement agreement is the form of agreement, recorded by an Acas conciliator, by which an employer and employee compromise existing or potential Employment Tribunal claims to bring a dispute to an end. In practice it sets out the agreed terms (for example, compensation, withdrawal of proceedings, references and confidentiality) and the specific claims being waived. “COT3” is Acas’s terminology rather than a statutory definition. Its legal effect in Great Britain arises from section 203 Employment Rights Act 1996 and equivalent provisions for discrimination claims, which permit statutory employment rights to be validly waived through Acas conciliation. A COT3 is a binding contract once the parties confirm terms via the conciliator; unlike a statutory “settlement agreement”, it does not require the employee to receive independent legal advice. Use is consistent in England & Wales and Scotland through Acas. In Northern Ireland, the Labour Relations Agency operates the equivalent conciliation agreement (often colloquially called an LRA COT3) under local legislation. There is no COT3 process in Ireland; settlement is by private agreement or through Workplace Relations Commission/Labour Court procedures. Careful drafting is essential: COT3s typically settle specified employment and discrimination claims (and related contractual claims) identified in the agreement.