Settled unfair dismissal claim cannot be reopened: tribunal strikes out second claim
A former employee who settled her unfair dismissal claim and signed a withdrawal agreement could not bring a second claim about a detrimental reference or reopen the original case. The tribunal struck out the claim for lack of jurisdiction.
2 min read · Last updated 18 May 2026
Case details
- #jurisdiction
- #strike-out
- #settlement-agreement
- #issue-estoppel
- #detrimental-reference
Key facts
- The claimant was employed from 19 January 2009 and summarily dismissed on 18 December 2019.
- The claimant presented a first claim (3306574/2020) for unfair dismissal, notice pay, and holiday pay on 1 July 2020.
- The first claim was settled by a settlement agreement signed on 24 November 2020, and the claim was dismissed on 5 January 2021.
- The claimant presented a second claim (3323716/2021) on 20 December 2021, complaining about a detrimental reference and seeking to reopen the unfair dismissal claim.
- Employment Judge Quill refused to reconsider the dismissal of the first claim on 21 April 2023.
- The tribunal found it had no jurisdiction to hear the complaint about the detrimental reference.
Timeline
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Employment started
The claimant began employment with the respondent.
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Summary dismissal
The claimant was summarily dismissed by the respondent.
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First claim presented
The claimant presented a claim for unfair dismissal, notice pay, and holiday pay (case 3306574/2020).
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Settlement agreement
The parties settled the first claim; the claimant signed the agreement on 24 November 2020.
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First claim dismissed
Employment Judge Quill dismissed the first claim following withdrawal.
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Second claim presented
The claimant presented a second claim (3323716/2021) about a detrimental reference and seeking to reopen the unfair dismissal claim.
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Second claim accepted
Employment Judge Quill directed that the second claim form be accepted.
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Reconsideration refused
Employment Judge Quill refused to reconsider the dismissal of the first claim.
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Preliminary hearing
A public preliminary hearing was held to determine jurisdiction and strike out.
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Judgment issued
Employment Judge Alliott struck out the second claim for lack of jurisdiction.
The legal issue
Whether the employment tribunal had jurisdiction to hear a second claim that included a complaint about a detrimental reference and an attempt to reopen an unfair dismissal claim that had already been settled and dismissed by a previous tribunal judgment.
The outcome
The tribunal struck out the second claim in its entirety.
- The unfair dismissal claim could not be reopened because the first claim had been settled by a settlement agreement and dismissed following withdrawal. The tribunal found that raising it again was an abuse of process and barred by issue estoppel.
- The complaint about a detrimental reference was also struck out because the tribunal had no jurisdiction to hear complaints about references provided by a regulated entity to another regulated entity.
- No compensation was awarded as the claim was struck out.
Lessons & takeaways
- Once a tribunal claim is settled and dismissed, you cannot bring a new claim about the same dismissal unless you successfully appeal or have the original judgment reconsidered.
- Employment tribunals have limited jurisdiction over references — complaints about references from regulated financial firms may need to be pursued through other routes, such as the Financial Ombudsman Service.
- If you believe a settlement agreement was unfair or that new issues have arisen, seek legal advice promptly — delay can bar reconsideration or appeal.
A second bite at the cherry that failed
This case shows the difficulty of trying to reopen an employment dispute after it has been formally settled. The former employee, who had 10 years' service, was summarily dismissed in December 2019. She brought a first claim for unfair dismissal, notice pay and holiday pay, which was settled by a settlement agreement in November 2020. The claim was then dismissed following withdrawal.
Nearly a year later, she presented a second claim complaining about a detrimental reference provided by the bank and seeking to reopen the unfair dismissal claim. The tribunal had to decide whether it could hear any part of this second claim.
What the losing side could have done differently
The former employee might have challenged the settlement agreement at the time if she felt it was not binding, or she could have appealed the original dismissal judgment. Instead, she waited until after the reference was given and then tried to resurrect the old claim. The tribunal made clear that the original judgment stood — it had not been reconsidered or successfully appealed — so the unfair dismissal complaint could not be heard again.
As for the detrimental reference, the tribunal found it had no jurisdiction. The reference was provided by a bank (a regulated entity) to another regulated entity, and such complaints fall outside the tribunal's remit. The employee would need to pursue this through a different forum, such as the Financial Ombudsman Service.
Why this matters for similar claims
This case is a reminder that settlement agreements are usually final. Once you sign one and withdraw your claim, you cannot later bring a fresh claim about the same dismissal. If you believe new issues have arisen — such as a detrimental reference — you need to check whether the tribunal has jurisdiction to hear them. For references from regulated firms, the answer is often no. Getting legal advice before signing a settlement agreement, and before bringing any subsequent claim, is essential to avoid wasting time and costs.
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