Settle By Agreement


The transaction contract is a legal contract between you and your employer – you both have to comply. Your employer may want you to have the confidentiality of the agreement. Once you have reached an agreement with your employer, they will usually write it down. 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. If you have a complaint against your employer that you could bring to an employment tribunal, the employer may try to resolve the dispute to prevent you from making a claim or continuing to pursue an existing claim. You can be very satisfied with the offer of a transaction contract. You must obtain legal advice before signing, but nothing else prevents you from signing the proposed transaction agreement. Similarly, you do not have to accept the offer.

As the CASA code of conduct for transaction agreements makes clear, transaction agreements are optional. You can enter into a negotiation process to get a transaction that satisfies you or simply refuse any discussion. The contract is “contract-based,” i.e. it does not hire the employer or the worker until it is signed. HR Tip: Don`t assume that your communications related to a transaction agreement are not out of the band (unauthorized). A transcript with the inscription “without prejudice” does not automatically render it inadmissible. Similarly, the “protected conversations” rules (section 111A of ERA`96) offer very limited protection for normal unjustified claims to dismissal and protection may be lost. Don`t get lulled into a false sense of security – and don`t say anything that you`re not prepared to justify if negotiations are called off and conversations are allowed in a court case. More information about protected entertainment can be found below.

For a transaction contract to be valid against you, it must refer to certain sections of labour law. It must also contain clauses that say you are waiving some (or all) of your labour rights. . Many of the terms used have specific meanings that are necessary to give the transaction agreement its intended effect. In order to circumvent the issue of confidentiality mentioned above, a standard consent order, called the Tomlin Order, is issued.