Unfair Dismissal Settlement Agreement
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What is an Unfair Dismissal Settlement Agreement?
An unfair dismissal settlement agreement is a legally binding contract between an employer and an employee. It resolves any disputes related to the employee’s claim of unfair dismissal. Employees who have been employed continuously for in excess of two continuous years can raise a claim of unfair dismissal. They can challenge the termination of their employment.
When an employee is dismissed and has not completed two years of continuous service with the same employer, they are not protected by ‘fair reasons’ as per the Employment Rights Act 1996.
An unfair dismissal settlement agreement claim is a statutory claim for loss of salary together with a basic award which is equivalent to statutory redundancy pay.
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What’s the Difference Between a COT3 and a Settlement Agreement?
An alternative to a settlement agreement is known as a COT3 agreement.
In both cases, whether a settlement agreement is entered into or a COT3 is agreed upon, the employee must relinquish their rights. They will no longer be able to pursue the unfair dismissal claim in the Employment Tribunal.
The employee will typically be awarded a sum of money as compensation within the settlement agreement. This is a consideration for his or her agreement to waive the entitlement to continue with the claim of unfair dismissal.
The employee entering into the COT3 agreement, or the settlement agreement, should seek legal advice on the terms of that agreement prior to signing it.
It is a legal requirement for the individual to seek legal advice on the terms of a settlement agreement otherwise that agreement will not be enforceable. There is no legal requirement for an employee to seek advice on the terms of a COT3 agreement which is enforceable whether or not legal advice is sought.
It is always wise for individuals entering into a COT3 or a settlement agreement to seek legal advice, even if it is not required. Consulting a lawyer helps to ensure that the rights being waived are appropriate given the specific circumstances of their case.
Complete your unfair dismissal settlement agreement in 3 easy steps
1
Start Start by clicking "Start process", calling us, or requesting a callback from us.
2
Get Advice We'll give you free legal advice on what your settlement agreement means and what your options are on the same day as we receive it. Negotiation services are available where applicable.
3
Sign-Off Once you're happy with your employer's terms, sign and return it to us. We'll speak with your employer to seek closure that same day. We'll return your completed agreement so you can get back on with your life.
Contact Us Today
If you have questions or need guidance on where to start, you can arrange a free no-obligation telephone appointment with a settlement agreement lawyer. Simply call us, request a callback, or begin the process online.
What is a Constructive Unfair Dismissal Claim?
One type of unfair dismissal is constructive unfair dismissal. This is where an employee chooses to resign due to the employer’s poor behaviours. They argue that his or her dismissal has been forced by those poor behaviours.
A constructive unfair dismissal claim is more difficult and comparatively less likely to succeed than an ordinary unfair dismissal claim brought in by the Employment Tribunal.
Get in touch for help with your unfair dismissal settlement agreement claim
We operate on a ‘no win, no fee’ basis, providing you with the confidence to pursue your unfair dismissal settlement agreement. We can work together to turn your situation around.
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