Did you know for a settlement agreement to be binding and valid certain statutory requirements must be satisfied?
For a settlement agreement to be valid, certain conditions must be met:
If an agreement fails to comply with any of the requirements, it will be invalid. This is so even if the failure is seemingly only technical.
In the case of Palihakkara v British Telecommunications Plc UKEAT/0185/06, the EAT decided that a compromise agreement did not settle claims under the Sex Discrimination Act 1975 or the Race Relations Act 1976 because it did not expressly state that the conditions regulating agreements under those statutes had been satisfied. It did state that the conditions under the Employment Rights Act 1996 had been satisfied, but this was not sufficient. The EAT stated "the absence of a clause confirming that the conditions in these discrimination statutes are satisfied is fatal … the statutes are plain and require a condition."
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