Can redundancy claims be settled in the UK?

Yes. Redundancy-related claims, including unfair selection, inadequate consultation, or disputes over redundancy pay, can often be resolved through a settlement agreement.

What is a wrongful dismissal claim?

Wrongful dismissal is usually a breach of contract claim, often involving notice pay. It can commonly be settled as part of an employment settlement agreement.

Can breach of employment contract claims be settled?

Yes. Claims for breach of an employment contract, such as failure to pay notice, benefits, or agreed bonuses, may be waived and settled by agreement.

Can all employment rights be waived in a settlement agreement?

No. Some rights cannot be waived, such as accrued pension rights in certain circumstances, future personal injury claims unknown at the time, and rights to make protected disclosures.

What makes a settlement agreement valid in the UK?

A valid UK settlement agreement must be in writing, relate to specific claims, and the employee must receive independent legal advice from a qualified adviser.

Do employment claims need to be filed before they can be settled?

No. A settlement agreement can be offered before, during, or after an employment tribunal claim to resolve potential or existing employment disputes.

What is the difference between a settlement agreement and a COT3 agreement?

ACAS COT3 agreements and settlement agreements can both settle employment claims, but a COT3 is arranged through ACAS conciliation, while a settlement agreement requires independent legal advice.

Does an employee need a solicitor for a settlement agreement?

Usually yes. Employers often contribute to the employee’s independent legal advice costs because legal advice is required for the settlement agreement to be valid.

Can a settlement agreement cover future employment claims?

Settlement agreements can cover future claims only if they are clearly identified and legally capable of being waived. Unknown or excluded claims may not be validly settled.

How can I create a settlement agreement for UK employment claims?

You can use an online legal document generator to create a tailored UK settlement agreement, then have it reviewed by an independent adviser before signing.

EN-GB>Disputes>Settlement Agreement>United Kingdom Employment Claims That May Be Settled

Employment Claims That May Be Settled In The United Kingdom

Created: 10 Jun 2026

This article explains which employment claims may be settled and why understanding them matters before signing an agreement. It is useful for employees and employers assessing risk, rights and outcomes. For related guidance, visit AI Generated British Settlement Agreement.

Claim Name	Legal Basis	Typical Limitation Period	Waiver Status	Typical Risk Level
Dismissal
Unfair dismissal	Employment Rights Act 1996, Part X	3 months less 1 day, subject to ACAS early conciliation	Usually Waivable	High
Constructive unfair dismissal	Employment Rights Act 1996, ss 95 and 98	3 months less 1 day, subject to ACAS early conciliation	Usually Waivable	High
Contractual
Wrongful dismissal	Common law breach of contract	3 months less 1 day in tribunal usually 6 years in court	Usually Waivable	Medium
Pay and Benefits
Failure to pay notice pay	Employment Rights Act 1996, ss 86-91 contract	3 months less 1 day in tribunal usually 6 years in court	Usually Waivable	Medium
Redundancy
Statutory redundancy pay	Employment Rights Act 1996, Part XI	Normally 6 months from dismissal	Usually Waivable	Medium
Failure to consult on redundancy	Employment Rights Act 1996 TULRCA 1992, s 188	3 months less 1 day, subject to ACAS early conciliation	Usually Waivable	High
Protective award for collective redundancy	TULRCA 1992, ss 188-189	3 months less 1 day from last dismissal, subject to ACAS early conciliation	Usually Waivable	High
Pay and Benefits
Unauthorised deduction from wages	Employment Rights Act 1996, Part II	3 months less 1 day from deduction or last deduction, subject to ACAS early conciliation	Usually Waivable	Medium
Working Time
Unpaid holiday pay	Working Time Regulations 1998, regs 13-16	3 months less 1 day, subject to ACAS early conciliation	Usually Waivable	Medium
Pay and Benefits
National Minimum Wage underpayment	National Minimum Wage Act 1998	3 months less 1 day for tribunal deduction claim HMRC enforcement may differ	Waivable Only if Specific Requirements Met	High
Discrimination
Equal pay	Equality Act 2010, Chapter 3	Usually 6 months from end of employment	Waivable Only if Specific Requirements Met	High
Sex discrimination	Equality Act 2010	3 months less 1 day, subject to ACAS early conciliation	Waivable Only if Specific Requirements Met	High
Race discrimination	Equality Act 2010	3 months less 1 day, subject to ACAS early conciliation	Waivable Only if Specific Requirements Met	High
Disability discrimination	Equality Act 2010	3 months less 1 day, subject to ACAS early conciliation	Waivable Only if Specific Requirements Met	High
Pregnancy and maternity discrimination	Equality Act 2010, ss 18 and 39	3 months less 1 day, subject to ACAS early conciliation	Waivable Only if Specific Requirements Met	High
Age discrimination	Equality Act 2010	3 months less 1 day, subject to ACAS early conciliation	Waivable Only if Specific Requirements Met	High
Sexual orientation discrimination	Equality Act 2010	3 months less 1 day, subject to ACAS early conciliation	Waivable Only if Specific Requirements Met	High
Religion or belief discrimination	Equality Act 2010	3 months less 1 day, subject to ACAS early conciliation	Waivable Only if Specific Requirements Met	High
Gender reassignment discrimination	Equality Act 2010	3 months less 1 day, subject to ACAS early conciliation	Waivable Only if Specific Requirements Met	High
Marriage or civil partnership discrimination	Equality Act 2010	3 months less 1 day, subject to ACAS early conciliation	Waivable Only if Specific Requirements Met	Medium
Harassment related to a protected characteristic	Equality Act 2010, s 26	3 months less 1 day, subject to ACAS early conciliation	Waivable Only if Specific Requirements Met	High
Victimisation under equality law	Equality Act 2010, s 27	3 months less 1 day, subject to ACAS early conciliation	Waivable Only if Specific Requirements Met	High
Failure to make reasonable adjustments	Equality Act 2010, ss 20-21	3 months less 1 day, subject to ACAS early conciliation	Waivable Only if Specific Requirements Met	High
Whistleblowing
Whistleblowing detriment	Employment Rights Act 1996, ss 43A-43L and 47B	3 months less 1 day, subject to ACAS early conciliation	Waivable Only if Specific Requirements Met	High
Automatic unfair dismissal for whistleblowing	Employment Rights Act 1996, s 103A	3 months less 1 day, subject to ACAS early conciliation	Waivable Only if Specific Requirements Met	High
Family Leave
Maternity leave detriment	Employment Rights Act 1996, s 47C Maternity and Parental Leave Regulations 1999	3 months less 1 day, subject to ACAS early conciliation	Usually Waivable	High
Automatic unfair dismissal for pregnancy or maternity	Employment Rights Act 1996, s 99	3 months less 1 day, subject to ACAS early conciliation	Usually Waivable	High
Paternity leave detriment or dismissal	Employment Rights Act 1996 Paternity and Adoption Leave Regulations 2002	3 months less 1 day, subject to ACAS early conciliation	Usually Waivable	Medium
Adoption leave detriment or dismissal	Employment Rights Act 1996 Paternity and Adoption Leave Regulations 2002	3 months less 1 day, subject to ACAS early conciliation	Usually Waivable	Medium
Shared parental leave detriment or dismissal	Shared Parental Leave Regulations 2014	3 months less 1 day, subject to ACAS early conciliation	Usually Waivable	Medium
Parental leave detriment or dismissal	Maternity and Parental Leave Regulations 1999	3 months less 1 day, subject to ACAS early conciliation	Usually Waivable	Medium
Flexible working request claim	Employment Rights Act 1996, ss 80F-80I	3 months less 1 day from decision or breach, subject to ACAS early conciliation	Usually Waivable	Medium
Working Time
Working time weekly limit breach	Working Time Regulations 1998, reg 4	3 months less 1 day, subject to ACAS early conciliation	Usually Waivable	Medium
Rest break or daily rest breach	Working Time Regulations 1998, regs 10-12	3 months less 1 day, subject to ACAS early conciliation	Usually Waivable	Medium
Night work limit breach	Working Time Regulations 1998, regs 6-9	3 months less 1 day, subject to ACAS early conciliation	Usually Waivable	Medium
Contractual
Breach of employment contract	Common law Employment Tribunals Extension of Jurisdiction Order 1994	3 months less 1 day in tribunal after employment ends usually 6 years in court	Usually Waivable	Medium
Pay and Benefits
Unpaid bonus or commission	Contract Employment Rights Act 1996, Part II	3 months less 1 day for wages claim usually 6 years in court	Usually Waivable	Medium
Unpaid expenses	Contract or employer policy	Usually 6 years in court tribunal route depends on facts	Usually Waivable	Low
Unpaid pension contributions	Pensions Act 2008 contract	Fact-specific contract claims usually 6 years	Waivable Only if Specific Requirements Met	Medium
Dismissal
TUPE automatic unfair dismissal	TUPE Regulations 2006, reg 7	3 months less 1 day, subject to ACAS early conciliation	Usually Waivable	High
Other
TUPE information and consultation failure	TUPE Regulations 2006, regs 13-16	3 months less 1 day from transfer, subject to ACAS early conciliation	Usually Waivable	High
Failure to provide written employment particulars	Employment Rights Act 1996, ss 1-7B	Usually brought with another tribunal claim	Usually Waivable	Low
Pay and Benefits
Failure to provide itemised payslip	Employment Rights Act 1996, ss 8-12	3 months less 1 day from breach, subject to ACAS early conciliation	Usually Waivable	Low
Other
Trade union detriment	TULRCA 1992, ss 146-152	3 months less 1 day, subject to ACAS early conciliation	Usually Waivable	High
Dismissal
Automatic unfair dismissal for trade union reasons	TULRCA 1992, s 152	3 months less 1 day, subject to ACAS early conciliation	Usually Waivable	High
Other
Health and safety detriment	Employment Rights Act 1996, s 44	3 months less 1 day, subject to ACAS early conciliation	Usually Waivable	High
Dismissal
Automatic unfair dismissal for health and safety reasons	Employment Rights Act 1996, s 100	3 months less 1 day, subject to ACAS early conciliation	Usually Waivable	High
Automatic unfair dismissal for asserting statutory rights	Employment Rights Act 1996, s 104	3 months less 1 day, subject to ACAS early conciliation	Usually Waivable	High
Pay and Benefits
Part-time worker less favourable treatment	Part-time Workers Regulations 2000	3 months less 1 day, subject to ACAS early conciliation	Usually Waivable	Medium
Fixed-term employee less favourable treatment	Fixed-term Employees Regulations 2002	3 months less 1 day, subject to ACAS early conciliation	Usually Waivable	Medium
Agency worker equal treatment claim	Agency Workers Regulations 2010	3 months less 1 day, subject to ACAS early conciliation	Usually Waivable	Medium
Other
Employment data protection claim	UK GDPR Data Protection Act 2018	Usually 6 years for compensation claim ICO complaint timing differs	Uncertain or Fact-Specific	Medium
Workplace personal injury	Common law negligence health and safety duties	Usually 3 years from injury or knowledge	Waivable Only if Specific Requirements Met	High
Work-related stress injury	Common law negligence health and safety duties	Usually 3 years for personal injury	Waivable Only if Specific Requirements Met	High
Contractual
Restrictive covenant or confidentiality dispute	Common law restraint of trade contract	Usually 6 years for contract damages injunctions urgent	Usually Waivable	Medium
Other
Failure to allow workplace companion	Employment Relations Act 1999, s 10	3 months less 1 day, subject to ACAS early conciliation	Usually Waivable	Low
Trade union blacklisting	Blacklists Regulations 2010	3 months less 1 day in tribunal, subject to ACAS early conciliation	Usually Waivable	High
Pay and Benefits
Tax treatment dispute over termination payment	Income Tax Earnings and Pensions Act 2003, Part 6 Chapter 3	Fact-specific HMRC assessment and contract deadlines may apply	Uncertain or Fact-Specific	Medium
Statutory Sick Pay dispute	Social Security Contributions and Benefits Act 1992	HMRC dispute route tribunal wage claim may be 3 months less 1 day	Uncertain or Fact-Specific	Low
Family Leave
Statutory Maternity Pay dispute	Social Security Contributions and Benefits Act 1992	HMRC dispute route tribunal wage claim may be 3 months less 1 day	Uncertain or Fact-Specific	Medium
Pay and Benefits
Failure to allocate tips fairly	Employment Rights Act 1996, Part II tipping provisions	Usually 12 months for tipping complaint deductions may be 3 months less 1 day	Usually Waivable	Medium
Dismissal
Interim relief for automatic unfair dismissal	Employment Rights Act 1996, ss 128-132	7 days from effective date of termination	Usually Waivable	High
Contractual
Breach of settlement agreement payment terms	Contract law settlement agreement terms	Usually 6 years for contract claim	Uncertain or Fact-Specific	Medium

Which Employment Claims Can A UK Settlement Agreement Usually Waive?

Most ordinary Employment Tribunal and contract-related exit claims can usually be waived if the settlement agreement satisfies the statutory conditions, including independent legal advice and clear identification of the claims being settled. Common examples include unfair dismissal, redundancy pay, unlawful deduction from wages, holiday pay, discrimination, whistleblowing detriment and TUPE claims.

Which Claims Need Extra Care Before They Are Settled?

Some claims are only safely waived where specific requirements are met. In particular, Equality Act and whistleblowing claims should be described with enough detail to show the employee understood the particular complaints being compromised. Pension, personal injury and accrued statutory rights may also require precise drafting or separate specialist advice.

Which Employment Claims Are Harder To Waive?

Settlement agreements cannot usually prevent statutory bodies from enforcing the law or stop protected disclosures to regulators. They also should not purport to waive future unknown claims without careful wording, because enforceability is fact-specific and may be challenged.

What Limitation Periods Matter Most In Settlement Negotiations?

Many tribunal claims have a short deadline of three months less one day, often extended by ACAS early conciliation rules. Equal pay and breach of contract claims can involve longer periods, commonly six months in the tribunal for equal pay and six years in civil courts for many contract or debt claims. These differences affect urgency, settlement value and drafting scope.

Why Should A Settlement Agreement List Claims Specifically?

A broad waiver is not always enough. UK settlement agreements should normally name the particular claims being settled and refer to the relevant statutory provisions, especially for dismissal, discrimination, whistleblowing, wages, working time, redundancy and family leave rights.

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FAQs

What employment claims can be settled in the United Kingdom?

Common employment claims that may be settled include unfair dismissal, discrimination, wrongful dismissal, redundancy disputes, whistleblowing, equal pay, wage disputes, and breach of contract claims.

Can an unfair dismissal claim be settled with a settlement agreement?

Can workplace discrimination claims be settled?

Can whistleblowing claims be included in a settlement agreement?

Can wage and salary disputes be settled?

Show All FAQs