Settling outside tribunal
As stated a number of time previously, reaching a settlement without tribunal may well be in your best interests.
For example, in discrimination cases awards can be large and hard to predict, so an agreed settlement removes the risk of a shock result. Sometimes, however, there may be wider issues making it important to have the hearing at tribunal.
A settlement usually involves money and other aspects of value to the employee, such as an agreed reference if the employee has been dismissed. The reference is a key bargaining tool as the employee may need as reference which says more than the minimum requirements of confirming the dates of employment.
A confidentiality clause may also be of value and you cannot get this from a tribunal. Realistically, details of the settlement may still leak out so consider the impact of this on other employees.
There are two main routes to reaching a settlement:
- Conciliation through Acas. This frequently leads to a legally binding agreement, known as a COT3 settlement.
- A legally binding ‘compromise agreement’. The employee receives independent legal advice and can waive their statutory employment rights in return for an agreed settlement. These agreements can be drawn up before or after a claim has been brought. T he employer usually pays the employee’s legal costs.
For information about how we can help you with employment matters, contact us on info@mgarnerconsulting.com or ring us on 07885 525221..
