P>It is standard practice to settle employment law disputes either
with a COT3 form agreement through ACAS once proceedings have
started, or by way of a Compromise Agreement. In both cases there are
certain formalities which must be followed for the agreement to be
effective, but the net result of both agreements should be that the
employee is not able to bring any further claims against the
employer.In a recent case, however, an Employment Tribunal held that
an employee was still able to bring a further claim against the
employer, even though she had entered into a COT3 agreement. The
employee brought a claim for unfair dismissal, claiming that she was
owed back pay, as she had been paid less than the National Minimum
Wage, and that the failure to pay forced her to resign. It appears
that the COT3 was unsigned, but the tribunal does not appear to have
dealt with the case on the basis that this was a defect. Its point
was that there must be valid consideration for such an agreement and
the mere payment of an old debt (such as back pay) is not in itself a
consideration and did not preclude the employee from bringing a claim
for unfair dismissal.
This document is for general guidance and research purposes only, and does not purport to give professional advice. Please check the date at the top of the article; the Workplace Law Network retains historic articles for general research.
