Settling through
ACAS.

An ACAS COT3 agreement is a legally binding settlement reached with the help of the Advisory, Conciliation and Arbitration Service (ACAS). It is designed to resolve employment disputes as an alternative to pursuing a claim through an employment tribunal. COT3 agreements can be reached before or after tribunal proceedings begin, and are recorded on a standard form known as a COT3.

COT3 agreements differ from settlement agreements in several ways. Employees are not required to receive independent legal advice before entering into one. They can also include terms that go beyond what an employment tribunal can order, such as an apology or an employment reference. That flexibility can be useful, but it also means the wording needs to be read carefully before you agree.

The scope of claims a COT3 can cover is broad, and may include claims you were not aware of at the time. Future claims can be waived too, but only where the wording is clear and unequivocal. Because there is no statutory requirement for legal advice, it is possible to give up significant rights without realising it, particularly if the wording is broad.

A solicitor can review the drafting so you understand the scope of the waiver, only the intended claims are settled and the financial terms reflect the value and risk of those claims. It can also make sure the wording does not unintentionally bar future claims or rights you did not mean to give up. Careful scrutiny at the drafting stage can prevent costly disputes later about the scope, validity or meaning of the agreement.