Before you sign a settlement agreement

A settlement agreement ends a dispute with your employer: you receive a payment and give up the right to bring certain claims. You will need independent legal advice for it to be binding, and your employer often pays for some of that advice.

Five questions

1. What claims am I giving up? The agreement should list them. If it says “all claims”, ask what that covers.
2. How is the payment made up? Part may be taxable and part not; the agreement should say which.
3. What about my reference? An agreed reference can be attached.
4. When is it paid? Look for a date, not “in due course”.
5. What can I say about leaving? Confidentiality clauses should work both ways.

This is general information, not advice on your situation. Bring the draft to a first consultation and we will go through it line by line.