Settlement Agreements

October 27th, 2022

Part 10 of the Equality Act 2010 relates to contracts and other agreements, and collective agreements. Section 144 relates to contracting out. There is a general prohibition. However, there are exceptions from the prohibition. A “qualifying settlement agreement” will not be unenforceable. The meaning of “qualifying settlement agreement” is addressed in Section 147. A number of specified conditions must be met. These include that the contract must relate to “the particular complaint”. In BATHGATE v TECHNIP (2022) EAT 155 it is ruled that the words “the particular complaint” anticipate the existence of an actual complaint or circumstances where grounds for a complaint exist. They are not apt to describe a potential future complaint. It was held that the redundancy agreement in that case did not prevent a claim being made for age discrimination.

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