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Settlement Agreements - Common Terms

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Common Terms

Settlement agreements normally contain a number of “standard” provisions (but using different wording). Common terms are:

  • The employee is often required to indemnify the employer against any tax risk; see our page on Settlement Agreements and Tax for more information.
  • Confidentiality as to the terms of the agreement itself and/or any confidential information arising out of the employment itself.
  • The “waiver” clause will normally set out a long list of potential claims that the employee may have.
  • A clause requiring one or more of the parties not to speak detrimentally about the other party.
  • Typically, the employer will agree a sum of money towards the legal fees of the employee.
  • A declaration for the employee’s solicitor to sign to confirm that the employee has been independently advised.
  • Confirmation that various statutory requirements have been complied with.
  • Terms relating to payment of the money.
  • A reference clause stating that the employer will respond to reference requests from potential new employers of the employee in accordance with agreed wording.
  • Compromise agreements often refer to “ex gratia” payments. These are payments which are gratuitous and can sometimes be paid gross without the deduction of tax.
  • A repayment clause if, despite the agreement, if the employee brings a claim or otherwise breaches the agreement.
  • A warranty that the employee has not previously acted in breach of contract.

We can advise you on which terms are fair and appropriate. Our employment lawyers are specialists in their fields. If you are an employee requiring legal assistance with regards to a settlement agreement with an employer, we can help. We will ensure your best interests are paramount throughout. Our experience in handling settlement agreements for clients and our practical and down-to-earth approach to legal advice will help you achieve the best possible outcome.

Contact us for Settlement Agreement Legal Advice Sheffield

Settlement agreements allow an employer and employee to end their relationship without involving the employment tribunal. It is important, if your employer presents you with a settlement agreement, that you seek expert legal advice before agreeing to the terms. The conditions could be unfair to you and could place you in a difficult situation. Our employment experts regularly work with employees who are concerned about the terms included in their settlement agreement by their employers. Our role is to put you at ease, providing quick, straightforward advice on how we think you should proceed. Where we believe the conditions are not good enough, we will negotiate a better deal with your employer.

Ironmonger Curtis is a specialist commercial law firm based in Sheffield and serving Rotherham, Chesterfield, Barnsley, Dronfield and further afield. Our solicitors provide expert advice to individuals and businesses on all aspects of employment law and pride ourselves on the strong, long-lasting relationships we forge with our clients.

For expert settlement agreement advice for employers, call us on 0845 225 2635 or fill in our online contact form and we will get back to you without delay.

For business law advice call 0114 249 59 69


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