It limits the employee’s right to pursue a statutory employment claim (such as unfair dismissal) in the Employment Tribunal.
To comply with statute, a settlement agreement must:
1. be in writing;
2. relate to the specific claim being settled;
3. identify a named, relevant independent adviser from whom the employee has received advice as to the terms and effect of the agreement. In particular the employee must have received advice as to the effect on his or her ability to pursue a claim in the Tribunal;
4. state that the adviser is covered by professional indemnity insurance; and
5. state that the above conditions are satisfied.
It will be void for statutory claims such as unfair dismissal but will be valid for contractual claims such as wrongful dismissal.
No, for a settlement agreement to validly and effectively block a claim, the claim must be specifically identified in the body of the agreement.
Rights in respect of an occupational pension scheme and personal injury claims of which the employee is unaware are usually excluded from any waiver.