Redundency and COT3 agreements

A question about : Redundency and COT3 agreements

Hi all,

I'm new to this board and really need some advice.

My boss has today told me that I am being made redundant. We have spoken about pay and dates etc and he has suggested that if I sign a COT3 agreement, my wages will be paid tax free at the end of the month.

I have spoken to a couple of people who have told me not to sign it as it basically suggests that I mutually agreed to terminate my contract (when I didnt have a choice) and I cannot tell future potential employees that I was made redundant.

It also enables the company to employ someone else win my position legally should they so wish to.

Does anyone know anything about COT3's and if by signing this, will I will benefit or am I hanging my self?

Any advice would be useful please.

Many thanks
Kirk

Best answers:

• How long have you worked there for?
• You should have a quick chat with a lawyer before you sign anything. Search fro someone locally on Google they'll probably give you some free advice.
  If not I can point you towards someone in Manchester
• You can't do a COT3 - that requires ACAS involvement because that is a legal contract brokered by ACAS. I think they mean a settlement agreement (what used to be a compromise agreement).
  Your couple of people are wrong. Yes, it terminates any legal challenge you may have to unfairness in the decision, but if the reason for the termination is stated as redundancy, that is what it is. Such agreements are quite common in redundancy. To be lawful you MUST have independent legal advice, and although there is nothing that says the employer must pay for it, or a contribution towards it, this would be normal procedure for employers.