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are there different types of a settlement agreement yes there are two the settlement compromise agreement and the cot3 agreement a settlement agreement formerly known as a compromise agreement is something offered by an employer to an employee when terminating their employment theyre mainly used to legally signify that the employee agrees with the terms of which their employment ended and to protect the company from future employment tribunal claims being brought against it they are often accompanied by compensation or a termination payment to the employee a cot3 is when both parties settle on terms of an employees contract termination through acas the advisory conciliation and arbitration service conciliation this happens where the worker at first thinks they want to begin an employment tribunal case but after conciliation through acas the parties decide to settle out of court this type of agreement ensures that neither party can instigate a claim in future going through acas also
