The smart way to settle with your UK employer

 

Go in prepared - know where you stand legally and what's fair to ask for.

Acas Early Conciliation

COT3 settlements

Without Prejudice negotiations

Settlement and COT3 hero_01

£149 

What you get: essentials for a fair settlement

Settlement and COT3 case analysis

Professional case analysis

Get clarity on your workplace issue. See exactly what claims you may have and how likely they are to succeed at Tribunal or in settlement discussions

Settlement and COT3 clear legal grounds

Clear legal grounds

Show your employer you're serious and prepared with clearly defined, professionally-checked details of your claims.

Settlement and COT3 clear legal grounds

Clear legal grounds

Show your employer you're serious and prepared with clearly defined, professionally-checked details of your claims.

Clear legal grounds

Show your employer you're serious and prepared with clearly defined, professionally-checked details of your claims.

Settlement and COT3 clear legal grounds
Settlement and COT3 Realistic Tribunal values

Realistic Tribunal values

See exactly what legal claims you may have and what you could win at Tribunal or in settlement negotiations.

Over 13,000 cases supported

How it works

1

Book a 1-hour call with a UK legal expert to discuss your case

2

Valla reviews your case and sends you a detailed report

3

Enter settlement negotiations with confidence

Qualified UK legal experts • Completely confidential

"Solicitors are so expensive that having some affordable legal advice was really useful and helped keep my resolve. Masumah helped me with the list of issues, and I believe this greatly helped me achieve the settlement I wanted."

 

- CL, 22 May 2024

"I received amazing support and advice leading up to my preliminary hearing. Could not have done it without them and will definitely use them again. Would recommend 100%"

 

- Nicola, 3 February 2025

"Valla supported me for well over a year and enabled me to be a litigant in person for my ET claim, which ultimately I settled out of court for the full compensation amount requested"

 

- Jen, 1 October 2024

Frequently asked questions

What is a settlement agreement?

A settlement agreement is a formal contract between you and your employer to resolve your workplace problem. Settlement agreements are written down and signed by both of you. You don’t need a court or Tribunal to reach a settlement.

To reach agreement, both sides negotiate what they are willing to do to reach a resolution. This often means one side drafts the contract (usually your employer) and then you send versions back and forth between you until you are both happy with it.

Usually, a settlement agreement means that you are paid a sum of money in return for either:

  • not starting an Employment Tribunal claim, or 
  • withdrawing a Tribunal claim that you’ve already started.

 

What does a settlement agreement include?

A settlement agreement typically includes a combination of things like:   

  • a compensation payment (the amount they agree to pay for you to drop the case)
  • payment for your notice period
  • payment for any holidays
  • your employer's contribution to your legal fees (see below)
  • an agreed reference that the employer will give for you
  • agreements about confidentiality.

Read more about how to negotiate the terms of a settlement agreement.

 

What is a COT3 agreement?

A COT3 agreement is a settlement arranged through Acas during Early Conciliation. It’s a faster and often simpler way to settle workplace disputes, and doesn’t require you to get independent legal advice—though it can still help.

When can I ask for a settlement?

You can explore a settlement at any time—before raising a formal grievance, during disciplinary action, after resigning, or even after starting Acas Early Conciliation. The key is being prepared and knowing your legal position.

What is a “without prejudice” letter?

A “without prejudice” letter is a way to open informal settlement discussions with your employer without those discussions being used against you later. Valla can help you draft one to start negotiations confidently.

Can I negotiate with my employer on my own?

Yes, you can. Valla gives you the tools and legal insight to negotiate directly with your employer, including a case assessment and clear breakdown of your legal claims and potential Tribunal values.

What does the Valla Settlement and COT3 Assessment include?

You’ll get a 1-hour call with a UK legal expert, followed by a professional report outlining your potential legal claims, how strong they are, and what they may be worth at Tribunal. This helps you negotiate with confidence.

How much does the assessment cost?

The Settlement and COT3 case assessment costs £149. This includes a full legal review and a written report tailored to your situation.

Will my employer cover the cost of legal advice?

Potentially. It's common for employers to contribute towards legal fees for review of settlement agreements—typically around £500 plus VAT. You can ask for a higher contribution during negotiations if needed.

What’s the difference between a settlement agreement and a COT3?

The main difference is how the agreement is made. A settlement agreement is negotiated directly between you and your employer (with or without lawyers). A COT3 is reached through Acas during Early Conciliation and is often quicker.

Is the assessment confidential?

Yes. Everything you share with Valla is completely confidential and reviewed only by qualified UK legal experts.

How to start settlement negotiations with your employer

Your approach to settling is likely to be slightly different depending on whether you are before or after the stage of contacting Acas to commence Early Conciliation.
 

Settling before contacting Acas

If you and your employer agree to settle before you bring the matter to Acas, you will typically use a settlement agreement, which is a document negotiated directly between you and the employer (and any lawyers either of you may have). Acas and any other bodies don't get involved in this settlement agreement.

 Before entering into negotiations, you can put your best case forward by having your case professionally assessed so that you can clearly articulate what legal claims you have and what they could win in Tribunal.

Requirement for independent legal advice

For a settlement agreement to be binding, you are required to get independent legal advice before you sign it. This would usually be from a qualified lawyer, but it could alternatively be from an authorised trade union representative or advice worker.
 
Whilst they don’t have to, it’s common practice for employers to offer you a contribution towards your legal fees (typically between £150 - £1,500, but a good rule of thumb is that the employer will pay around £500 plus VAT). Be aware that this may not cover the full cost of your legal fees and is only a contribution. If you’re worried about this, you can always try to negotiate with your employer for a higher contribution. Otherwise, you could speak to some lawyers and see what they might be able to do within your budget, for example, see if they will take the case as far as they can within that budget so that you can take on more of the negotiation yourself. 
 

Without prejudice letters

If you’re not at the stage of committing to legal fees just yet, and want to firstly see if your employer will engage in any kind of settlement, you can still do this without a lawyer. At Valla, we can help you write a “without prejudice” letter to your employer to start negotiations.
 
 

Acas Early Conciliation and COT3 agreements

If you have already contacted Acas to start Early Conciliation, the most common way to settle is via an Acas "COT3" agreement.
 
After you raise an issue with Acas, Acas will contact you to understand the issue, and to ask what you want. Having a clear picture of your potential legal claims and their value at this stage will help you give a confident answer to this question.
 
Acas will then contact your employer to ask if they'd like to engage in a settlement conversation, and if they do, the Acas Conciliator will facilitate a back-and-forth negotiation between you and your employer. While you aren't required to have independent legal advice during this negotiation, it helps to have support - you can book another call with the Valla legal expert who performed your case assessment for additional support.
 
If you and your employer agree to settle, you will agree and sign a ACAS COT3 agreement document. The big difference between this and a settlement agreement is that the negotiation is facilitated through ACAS rather than directly between you and the employer. In this settlement you are not legally required to receive independent legal advice, but you can still ask the employer to make a payment towards any legal fees you have.