Q&As

Where the parties to an employment dispute have agreed terms of settlement to be included in a settlement agreement, including as to payment, are the parties bound by the terms of that agreement?

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Published on LexisPSL on 26/09/2017

The following Employment Q&A provides comprehensive and up to date legal information covering:

  • Where the parties to an employment dispute have agreed terms of settlement to be included in a settlement agreement, including as to payment, are the parties bound by the terms of that agreement?
  • Contractual claims
  • Statutory claims

Where the parties to an employment dispute have agreed terms of settlement to be included in a settlement agreement, including as to payment, are the parties bound by the terms of that agreement?

Contractual claims

There is no requirement that the agreement settling a contractual claim must be in a particular form; since the Employment Tribunals Act 1996 (ETA 1996) (under which the [Employment Tribunals] Extension of Jurisdiction (England and Wales) Order 1994, SI 1994/1623 was re-enacted) does not include any prohibition against contracting out, the position regarding settlement is the same as with comparable proceedings in the civil courts; there is no need for such a contract to be drawn up by a conciliation officer or to be in the form of a settlement agreement.

However, settlement of a contractual claim must be contained in a binding contract, ie there must be offer and acceptance, an intention to create legal relations and certainty (there is no requirement for consideration in Scots contract law).

For further information, see: Formation

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