Settlements, COT3 Agreements and ACAS Early Conciliation

Resolving Conflict Without Escalation

Tribunal litigation is not always inevitable. Nor is it always wise. For employers facing disputes, the early use of settlement and COT3 agreements or ACAS conciliation can bring a matter to a close without compromising commercial or reputational interests. At Watershed, we support clients through these critical decisions, balancing risk, legality and strategic outcome.

Settlement and COT3 agreements: Certainty, Constructed

A settlement or COT3 agreement is not merely a legal formality; it is a carefully calibrated tool for risk management. We treat it as such.

Our team ensures every agreement:

• Protects employer interests, with precise drafting that limits future claims and closes off legal uncertainty.

• Aligns with organisational priorities, whether the issue involves redundancy, underperformance or a senior exit.

• Manages communications to preserve employee dignity and corporate reputation.

• Complies with legal requirements, avoiding technical pitfalls that can undermine enforceability.

This is not generic HR process work. These are strategic interventions, often at board level, requiring discretion, pace and sound judgement.

ACAS Early Conciliation: A Tactical Advantage

Early conciliation through ACAS is a mandatory prelude to most tribunal claims. Handled well, it can also be an effective off-ramp.
Our role:

• Assess the strength of the claim and weigh it against commercial imperatives.

• Handle all ACAS engagement, ensuring clarity of message and consistency of tone.

• Advise on strategic posture, so you avoid unnecessary concessions while managing escalation risk.

• Keep control of the narrative, resolving matters before they reach public scrutiny.


We act exclusively for employers, so our guidance is unambiguous. Our objective is not simply to settle, but to settle well.

Why Employers Choose Watershed

Employer-side only

We do not act for employees. This exclusivity allows us to offer aligned, conflict-free advice with commercial realism at its core.

Board-level capability

Our work is frequently triggered by strategic advisory matters from our consultancy partner, Collinson Grant. That means we’re often advising in high-stakes contexts—from executive departures to union negotiations.

Pragmatism over process

We are not in the business of unnecessary escalation. If settlement is in your interests, we’ll say so, clearly and early.

Experience where it matters

We advise large employers across healthcare, retail, manufacturing and more. Our settlement agreements have protected some of the UK’s best-known employers from financial and reputational harm.

Examples of Recent Work

• Negotiated exit terms for a C-suite executive under regulatory scrutiny, avoiding litigation and press exposure.




• Secured favourable conciliation outcomes in sensitive whistleblowing and discrimination cases.

• Drafted complex settlement frameworks and COT3 agreements for collective redundancy programmes spanning over 200 employees.

• Resolved contractual disputes with former employees through tightly drafted agreements, neutralising risk of breach claims.