COT3

Agreement can bind before signature

A COT3 records terms reached through Acas conciliation before or during an Employment Tribunal claim. Once both sides agree the terms through the conciliator, the agreement is legally binding even if the written form has not yet been signed.

The Acas conciliation guidance explains that the conciliator writes the agreed wording and both parties receive a copy. Pause before giving final authority: later regret or unsigned paperwork does not normally reopen the deal.

Settle only what the words cover

Name the complaints or proceedings resolved, payments, dates, tax treatment, reference, property, confidentiality and any continuing duties. Say who must do each action and by when. If a tribunal claim exists, state how withdrawal or dismissal of proceedings will be handled.

The scope can be wider than the live claim if the wording clearly says so, but generic language can create unintended consequences. Make sure the employee, employer and conciliator share the same understanding before confirming agreement.

Turn the terms into owned actions

Give payroll the payment breakdown and deadline, assign reference or announcement wording, and restrict access to the agreement. Keep evidence that each obligation was completed. If one side does not comply, enforcement routes depend on the term and context, so obtain advice rather than restarting the underlying dispute.

Northern Ireland uses an LRA CO3, without the T. The nidirect workplace-dispute guidance confirms that an LRA settlement is binding once agreed, including verbally, and distinguishes the separate compromise-agreement route.