The EAT had held back in October 2022 that unknown future claims cannot be compromised by a settlement agreement. Nevertheless, the decision was appealed to the Court of Session, which has now overturned the ruling of the EAT. The Court of Session held: “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. Agreements under section 147 fell to be construed according to the same principles as any other contract. Here it was clear that the agreement was intended to cover claims of which the parties were unaware and which had not accrued. Finality in litigation….[is]..important. If the EAT’s interpretation were correct, settlement of all claims and potential claims would become impossible.“
