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Q. Do I need a solicitor to put a Settlement Agreement in place?


The Settlement Agreement is only legally binding once it has been signed by three parties.

Those parties are:-

  • You, the employer
  • Your departing employee, and
  • A solicitor representing the employee OR an ACAS representative

The employee is the one signing away their employment rights, which is why they need to be legally represented by a practising solicitor or by ACAS.

Solicitors fees are normally, wholly or partly paid for by the employer.

If the solicitor drafts the Settlement Agreement, costs may be higher.

A COT3 Agreement is a Settlement Agreement drawn up by ACAS.  It is legally binding and requires no solicitors to be involved.

Employers do not need legal representation however you do want to ensure that the Agreement protects you as much as legally possible.  

The Agreement is your insurance policy that nothing can come back on you in an Employment Tribunal.

HR savvy can assist employers with drafting of Settlement Agreements or COT3 Agreements, as well as the liaison and negotiation of terms with all parties, including ACAS.

Tracy Green
Tracey Murphy
Managing Director
01772 600228
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