Settlement

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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PAC criticises Home Office over failures to tackle exploitation under skilled worker visa route

The Public Accounts Committee (PAC) has found that the Home Office failed to adequately address the risk of exploitation and non-compliance under the skilled worker visa scheme, particularly in the care sector. In its 4 July 2025 report, the PAC criticises the department for failing to prevent abuse following the scheme’s 2022 expansion to support adult social care, highlighting serious weaknesses in safeguarding, compliance monitoring, and tracking of visa expiries. While the expansion helped alleviate workforce shortages during the pandemic, it also exposed migrant workers to exploitation, with evidence submitted to the inquiry detailing cases of debt bondage, excessive working hours and poor living conditions. Despite early signs of abuse, the Home Office was slow to respond and does not hold data on how many visa holders have been identified as potential victims of modern slavery. The PAC further found that the department lacks key data on visa compliance, including whether workers leave the UK at the end of their stay, are re-sponsored, or remain unlawfully, and has not analysed exit check data since the route’s introduction. In light of the recent decision to end overseas recruitment for care workers, the PAC warns of further risks unless cross-government workforce strategies are coordinated and calls for a joined-up approach to tackling exploitation and addressing domestic skills shortages.

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