ACAS: What is an ACAS COT3 settlement? ACAS is the government mediation service for employees and employers.
The ACAS service is free of charge and helps parties reach agreement. The appointed ACAS officer will help facilitate negotiations between the parties and if possible, ensure that a settlement is reached by agreement.
An ACAS ‘COT3’ settlement agreement formalizes a settlement in a written document.
There is no need to obtain independent legal advice on an ACAS COT3 settlement (unlike a regular Settlement Agreement in which you have to get advice from a legal adviser): Read more at the ACAS website.
An ACAS COT3 settlement will:
- settle specific claims but can settle all claims arising from employment or its termination
- will specify the sum the employer has to pay the employee in settlement
- may deal with other matters, such as return of employer property, confidentiality, provision of a reference etc
It is important to understand that once the ACAS officer declares there to be a binding agreement, you cannot change your mind, even if you have not yet signed the COT3 agreement itself. It is therefore crucial to ensure that you fully understand and agree with the contents of the agreement first