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Settlement agreements - Claims that are not capable of compromise under a settlement agreement

14 March 2018
xlarge_stock-footage-document-signature-paper-signature-signing-a-printed-form-signature-on-agreement-to-sign-a                   Employers often enter into Settlement Agreements with their employees as a way of settling potential claims that the employee may have against the Employer. But did you know that some claims can only be settled through ACAS Conciliation and some can’t be compromised at all? Claims that are not capable of compromise under a settlement agreement  The following claims do not have any statutory mechanism for settlement.
  • The right to statutory maternity pay, statutory paternity pay, statutory adoption pay or statutory shared parental pay. This is because there is an absolute restriction on contracting out of these payments
  • Claims for failure to notify the right to request working beyond retirement, and breach of right to be accompanied at a meeting to discuss retirement, under paragraphs 11 and 12 of Schedule 6 to the Employment Equality (Age) Regulations 2006 (SI 2006/1031) (repealed on 6 April 2012).
  • Current opinion is that Rights under the Data Protection Act 1998 (DPA) cannot be compromised. However it may possible to waive any civil claim for damages in respect of a breach of the DPA that occurred prior to the settlement agreement.
  • It is possible to compromise Personal Injury claims, however, employees' advisers will often insist during negotiation that latent Personal Injury claims (those which the employee is not currently aware of) should not be compromised and it is therefore standard practice for these claims to be excluded from the list of claims waived.
  • It is not possible to waive any accrued pension rights except in certain (limited) circumstances (section 91, Pensions Act 1995).
If you would like any advice on settlement agreements, please contact Hina on / 02073746546

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