Settlement Agreements Cannot Settle Future Employment Claims That Have Not Arisen

The EAT also made wider comments about the scope of settlement agreements and the practice of listing a series of claims to be settled. This article looks at the EAT's decision, what it means for settlement agreements more generally, and practical options for achieving clean breaks.

Background to settlement agreements and the need to be specific

Statutory employment claims such as unfair dismissal, discrimination and deductions from wages cannot be waived, contracted out of, or settled, except through Acas conciliation or a valid settlement agreement.