Settlement

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In many cases, the parties involved in an employment-related dispute will be keen to avoid the cost, uncertainty and time involved in either initiating (or responding to) an employment tribunal claim or, where a claim has been submitted, proceeding to a full tribunal hearing. Attempts to negotiate a settlement of the claim or potential claim may be made as soon as the dispute arises, before the submission of the claim or response, or at any point during the employment tribunal process (including during any period between determination of liability and remedy). The party initiating settlement negotiations will usually be keen to ensure that the existence and details of any offer or discussion are not admissible in any employment tribunal (or other court) proceedings.

If settlement terms are agreed, the means by which that settlement takes effect may depend on:

  1. •

    the nature of the claims or potential claims being settled

  2. •

    whether or not the claim has been submitted to the employment tribunal

If the employment dispute relates to contractual claims only, settlement may be recorded in 'ordinary' binding contractual form.

If the dispute relates to one

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Latest Employment News

Employment weekly highlights—15 January 2026

This edition of Employment weekly highlights includes: (1) the first regulations relating to the Employment Rights Act 2025 (ERA 2025), (2) draft regulations relating to bereaved partner’s paternity leave, (3) revised draft codes of practice on industrial action and picketing, (4) EAT decisions on withdrawal and dismissal, the burden of proof test in equality claims and costs in the EAT, (5) new guidance for professional sports agents on employment agency compliance, (6) advance notice of a new telephony service for the Croydon and London East Employment Tribunals, (7) a new Practice Note produced in partnership with Eversheds Sutherland (International) LLP on considerations for global employers under Regulation (EU) 2024/1689, the EU Artificial Intelligence (AI) Act, (8) dates for your diary, and (9) other news items of interest to employment practitioners.

DBT publishes guidance for professional sports agents on employment agency compliance

The Department for Business and Trade (DBT) and Employment Agency Standards Inspectorate have published guidance for agents of professional sports persons to comply with the Employment Agencies Act 1973 and Conduct of Employment Agencies and Employment Businesses Regulations 2003. The guidance was published on 14 January 2026 and addresses compliance requirements for sports agents operating within the private recruitment sector. The Employment Agency Standards Inspectorate serves as the state regulator for the private recruitment sector and is responsible for seeking compliance with employment agency legislation through complaint investigations and recruitment agency inspections.

EAT provides guidance for claimants who assert they have not unequivocally withdrawn their claim (McCrory v Healthwatch Stockport Ltd)

Employment analysis: Correspondence from a claimant who was recently bereaved and concerned about the prospect of a costs order was equivocal and did not amount to a withdrawal of his claim. The dismissal judgment (which was both a judgment putting into effect the determination that there had been an effective withdrawal and also a dismissal judgment) was made in error of law as there was no unequivocal withdrawal. The EAT provided guidance on the distinction between withdrawal of a claim and dismissal of a claim, and their consequences, and the correct procedural route where the claimant wishes to assert that they have not withdrawn their claim because the communication in question was not clear, unequivocal and unambiguous.

Employment Rights Act 2025 commencement regulations update

Employment analysis: The government has published the Employment Rights Act 2025 (Commencement No. 1 and Transitional and Saving Provisions) Regulations 2026, which brings into force the provisions of the Employment Rights Act 2025 (ERA 2025) related to the repeal of the Workers (Predictable Terms and Conditions) Act 2023, the extension to the ban on exclusivity terms in zero hour contracts and provisions of various other sections which will enable secondary legislation to be made.

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