Family Law {Divorce}

For settlement agreements to be binding in law, it is a statutory requirement for all employees to take legal advice from a solicitor or other properly designated legal professional before signing to confirm acceptance of the terms. To reach a contractually binding agreement, employers will almost always make a reasonable contribution to the legal costs of that advice accordingly. ACAS settlement agreements, sometimes called COT3 agreements, are an out of court settlement alternative to continuing with an employment tribunal claim. While it is advisable to take legal advice on the wording of a COT3 settlement agreement, it is not a ststutory requirement for employees to take independent lagal adviec on the terms before agreeing them.

Our minimum charge for advising on the terms and effect of a settlement agreeemnt is £350.00 plus VAT. It normally takes beween one and two hours to finalise a settlement agreement. If the terms of the agreement, including the settlement sums, are agreed in principle, we expect to complete the agreement within the employer's contribution to legal costs. If more substantial amendments are required, including negotiation of a more attractive termination payment, we normally estimate at least two hours work will be required.

We prepare an invoice marked payable by your employer and send it directly to your employer, as required by the terms of the agreement. If you have instructed us to negotiate substantial amendments to the terms of the agreement, including a more attractive severance payment, and have authorised costs above the employer's agreed contribution, we send a separate invoice marked payable to you for the balance.

The statutory requirement is limited to obtaining advice on the terms and effect of the agreement and so the contribution is for advice on the terms only. It does not extend to any earlier discussion or negotiation associated with the proposed termination arrangements or severance payments offered. Some employers will therefore limit what they are prepared to pay in each case to the minimum required for the agreement to be completed.

If your employer's contribution to your costs is less than our minimum charge we may seek your permission to engage with your employer to increase their contribution. If you ask us to negotiate an increase in the settlement sum or make substantial amendments to the terms, including the employer's contribution to your costs, we will provide you with an advanced costs estimate for the additional work.

In most cases, your employer will have informed you of the sum it offers to contribute to your legal costs before you contact us. If a draft agreement has already been prepared it should include a separate clause in the body of the agreement setting out the agreed contribution, which should be sufficient to advise you on the terms.