Advising on, negotiating and drafting COT3 Agreements
A dedicated, supportive Employment Legal Service guiding you through your employment needs.
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What is a Settlement Agreement?
A Settlement Agreement is a legally binding agreement between a school or academy trust and an individual, such as a current or former employee or worker. It records the agreed terms on which particular employment claims are settled and, where relevant, the employment relationship comes to an end. For the agreement to validly waive statutory employment claims, specific legal requirements must be met, including the requirement for the individual to receive advice from an independent adviser on the terms and effect of the agreement and its impact on their ability to pursue the claims covered by it.
When might a Settlement Agreement be used?
Schools and academy trusts may consider a Settlement Agreement where an agreed resolution could provide a proportionate alternative to continuing a formal process or pursuing litigation. This may arise in the context of disciplinary, capability, ill-health, redundancy or school or trust change processes; a breakdown in working relationships; an existing workplace dispute; or where potential Employment Tribunal claims have been raised. Settlement should not be treated as the automatic outcome: the circumstances, legal and commercial risks, available alternatives and any applicable governance requirements should be assessed before an offer is made
What terms can be included?
The agreement will reflect the particular resolution reached. Depending on the circumstances, it may address the termination date, notice and holiday pay, an agreed compensation or severance payment, the claims being settled, confidentiality provisions subject to applicable legal protections, statements about future conduct, withdrawal or conclusion of internal processes, return of property, an agreed announcement and an agreed reference. The wording should be tailored to the individual case rather than approached as a standard formality.
How can Legal Connect help you?
Legal Connect can support you from the earliest consideration of settlement through to completion. We can provide an independent assessment of the legal and commercial position, review the process followed and any potential claims, advise on alternatives and negotiation strategy, support protected or without prejudice discussions where appropriate, negotiate terms on your behalf, and draft or review the Settlement Agreement.
For academy trusts, we can also provide the documented legal assessment that may be needed to support informed governance and decision-making under the updated Academy Trust Handbook before entering into a settlement agreement.
Our approach is practical and proportionate, helping you reach clear and workable terms while ensuring that any decision to settle is informed by an appropriate assessment of risk, cost, alternatives and school or trust priorities
Fixed-fee service available
Legal Connect offers a fixed‑fee service for advising on and drafting Settlement Agreements, providing clarity over costs from the outset. The scope of the fixed‑fee service will be agreed with you in advance, with any additional work outside that scope discussed before it is undertaken
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