COT3

What Is A COT3COT3

A COT3 is the name of the document used by Acas (the “Advisory Conciliation and Arbitration Service”) to record the terms of settlement of actual or potential Employment Tribunal Claims.

When people refer to a COT3, they are referring to a legally binding agreement that Acas facilitate to settle an employment dispute.

Is A COT3 Different From A Settlement Agreement?

Generally, a COT3 and settlement agreement have the same purpose (to record the settlement terms), but they are different as is the process to achieve a final settlement.

  • The main difference is that a COT3 involves Acas and a settlement agreement is only binding if the individual received independent advice on the terms and effect by a “qualified person.”
  • The wording of COT3s is generally shorter than settlement agreements.
  • Settlement agreements are more commonly used when the employee is still employed and it records the terms of exit.
  • A COT3 is more commonly used when the Tribunal process has started.
  • The main way of settling Employment Tribunal Claims is a COT3.

What Does A COT3 Usually Include?

A COT3 sets out the agreement between the parties, usually to settle a claim made at the Employment Tribunal claim. The key provisions are similar to Settlement Agreement Terms, but the wording is generally shorter. The common things recorded are:

  • The settlement of an existing claim at the Employment Tribunal and any other dispute between the parties.
  • If the settlement includes a payment, it will record the amount along with the date and payment method.
  • It will record the parties’ understanding of how any payment should be taxed.
  • The agreement on confidentiality, for example, that the existence and terms of the COT3 will be kept confidential.
  • The process of providing any agreed reference in the future.
  • An agreement that the parties will not make derogatory comments about each other.

Key Considerations

  • Even though professional advice is not required for a COT3 to be binding, the document is used to settle existing claims and other statutory rights/claims, so caution should be taken (professional advice is recommended).
  • The terms become binding as soon as Acas have confirmation that the wording is agreed, so there is a binding agreement before the document is signed.
  • The effect of such an agreement can restrict or end your ability to take legal action, so is important to understand the implications of this and the value of the rights you are forfeiting.
  • The terms are negotiable. Much like negotiating a settlement agreement, there are ways to obtain more favourable terms.

Get In Touch

Please call us on 0207 118 9218 or complete a Free Online Enquiry and we will be in touch.

“Earlier this year I had a situation where my ex employer refused to pay what was owed after leaving the employment. The sum owed was in the region of £5000 and I was recommended Blair Toner. From the very first introduction and conversation of the problem, Blair guided me through the process of ‘Small Claims’ and linked me with the necessary forms etc. After winning judgement, still no payment happened. Blair then guided me through the process of appointing Court Baliffs and that resulted in the debt being paid in full. I personally would recommend Toner Legal and in fact Blair has since sorted a similar problem my son had experienced to my son’s total satisfaction.”

Alan Edward Goodes

“Blair was fantastic with my employment claim with a previous employer, a large Bank. He was very honest, explained the whole procedure throughout, and even though we didn’t meet face to face, he was only a phone call away, he was superb.”

- Karen Lewis

“Toner Legal guided me through a difficult situation at work. I was very happy with the outcome and would definitely recommend this company. I was always kept up to date with the progress of my case and the approach taken was both professional and personable. I could not have got the same result without them.”

Jo S

“I found Toner Legal while doing a google search and approached them in regards to a work related matter. I was put in touch with Adam Cooke who was a senior solicitor and Adam listened to my issue and advised the best way of dealing with this matter. Adam was very clear, honest and supportive with the advice he provided which in result got me a better resolution to the issue I had. The fees were very reasonable compared to other firms out there asking a lot more. I would not hesitate to recommend Toner Legal to anyone for any work related issues especially Adam. Really happy with the service.”

G S

“Toner Legal has been 5 star from day one, Blair’s eye for detail and communication skills have been faultless. His ability to communicate complicated legal clauses in simple easy to understand language was a breath of fresh air. Thank you Blair for everything.”

George