Settlement agreements can be used to cover unknown future claims that have not been brought by a former employee, Scotland’s Court of Session has ruled.
In a case concerning a former seafarer who was made redundant and missed out on an additional payout because he was over the age of 60, the court agreed that “a future claim of which an employee does not and could not have knowledge may be covered by a waiver where it is plain and unequivocal that this was intended”.
The court found that in this case, Bathgate v Technip Singapore, the settlement agreement was intended to cover claims that the parties were unaware of.
Charles Bathgate was made redundant from his chief officer position at ship operator Technip in 2017. He was 61 at the time of his redundancy.
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The settlement agreement included an enhanced redundancy and notice payment and an “additional sum”. However, the company decided that the sum would not be paid to those aged 61 and over.
Bathgate brought an age discrimination claim against the firm, but an employment tribunal agreed that the wording of the agreement stated that it covered any claims Bathgate “intimates and asserts” against Technip.
The Employment Appeal Tribunal upheld this decision, with the judge stating that the claimant had “signed away his right to sue for age discrimination before he knew whether he had a claim or not”.
Bathgate appealed and took his case to the Court of Session. The court agreed with the employer’s position and the decision of the employment tribunal.
“The jurisdiction of the tribunal is excluded by the settlement agreement. It follows that the age discrimination claim cannot be pursued. This renders the appeal redundant,” it said.
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