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Employment Law

Updated 2026-04-09

ACAS Conciliation vs Employment Tribunal

Comparing early ACAS conciliation with proceeding to a full Employment Tribunal hearing.

Overview

Before bringing an Employment Tribunal claim, every claimant must first contact ACAS for early conciliation (s.18A Employment Tribunals Act 1996). ACAS conciliation and the Employment Tribunal are therefore sequential stages rather than true alternatives — but you have a real choice about whether to settle via ACAS or proceed to a hearing. Understanding the trade-offs is essential before deciding.

Side-by-Side Comparison

ACAS Early Conciliation / Settlement (COT3)

Cost: Free

Time: Up to 6 weeks

Pros

Free, confidential, and without prejudice — nothing said in conciliation can be used in tribunal
Fast — conciliation lasts up to 6 weeks; settlement can be reached much sooner
Flexible settlement terms — can include reference letters, confidentiality clauses, payment terms, non-monetary remedies
Certain outcome — no risk of losing at tribunal

Cons

Settlement amount is often less than full tribunal compensation — employers factor in the risk reduction
Employer under no obligation to make a reasonable offer — can make no offer at all
Once a COT3 is signed, it is final and cannot be challenged (save in very limited circumstances)
Without legal advice, you may undervalue your claim or miss heads of loss

Best For

Cases where certainty of outcome matters more than maximising compensation, where the employment relationship has permanently broken down, or where the employer makes a commercially attractive offer.

Employment Tribunal Hearing

Cost: Free (no tribunal fees since UNISON [2017]); potential legal costs

Time: 6–18 months

Pros

Uncapped compensation in discrimination cases; basic award + compensatory award for unfair dismissal
Binding decision — the employer cannot simply refuse to comply
Vindicating effect — tribunal findings of fact are on the public record
Tribunal can award reinstatement or re-engagement as well as compensation

Cons

Long wait — typically 6–18 months from ET1 to hearing
Stressful and time-consuming — witness statements, bundle preparation, cross-examination
Risk of losing — even strong cases can fail on credibility findings
Costs orders (though rare) can be made against unsuccessful or vexatious parties

Best For

Cases with strong prospects of success where the employer's settlement offer is inadequate, discrimination cases with significant injury to feelings, or cases where vindication and the public record matter.

Key Differences

AspectACAS Early Conciliation / Settlement (COT3)Employment Tribunal Hearing

CertaintyCertain if settlement reached — but only if employer agreesCertain outcome imposed by judge — but risk of loss

SpeedWeeksMonths to years

AmountNegotiated — often less than potential tribunal awardFull legal entitlement if you win

ConfidentialitySettlement and COT3 terms often confidentialPublic proceedings; judgments published

Flexibility of remedyAnything both parties agree toLimited to statutory remedies (compensation, reinstatement, re-engagement, declaration)

FinalityCOT3 is final — cannot re-openSubject to appeal on a point of law (EAT, 42 days)

Our Recommendation

Obtain legal advice before deciding whether to accept a settlement via ACAS. Calculate your full schedule of loss (basic award, compensatory award, injury to feelings, future loss) to establish a baseline. A settlement of 50–70% of your full potential award is often commercially sensible when the uncertainty and delay of a tribunal hearing is factored in. However, in cases of deliberate, serious, or repeat discrimination, or where vindication matters, consider proceeding to tribunal.