The are a number of standard terms within settlement agreements.
What Are The Standard Terms Within Settlement Agreements?
The standard terms that are contained within most settlement agreements, are as follows:-
- A lump sum payment to be made to the employee as compensation for loss of office
- The Employee agrees not to pursue a claim/legal proceedings against the employer in the Employment Tribunal or in the civil courts
- A statement that the first £30,000.00 of the lump sum payment by way of compensation for loss of office can be paid tax free, but that the employee provides a tax indemnity to the employer in respect of any tax due
- That there will be confidentiality in relation to trade secrets, the existence of the Settlement Agreement, and the terms and conditions of the Settlement Agreement
- No derogatory remarks by either party in relation to the other
- That the employer will provide an agreed reference for the employee to prospective future employers, a copy of the agreed wording of which is annexed to the Settlement Agreement
- The position on post termination restrictive covenants is often set out
- Return of employers property by employee
- Confirmation that the employee has received independent legal advice
What To Do If You Require Advice On A Settlement Agreement
Should you have been offered a Settlement Agreement which you require independent advice on, then please call one of our solicitors immediately on 07919 561266 or complete the questionnaire on the right hand side of this page. A solicitor will then arrange an appointment with you to go through the Settlement Agreement and advise accordingly.