Settlement Agreement Terms

Settlement agreements can also include:

  1. Confidentiality provisions

  2. Non derogatory comments provision

  3. An agreed reference

  4. An agreed announcement wording

  5. Post termination restrictions

  6. Provision of outplacement services

  7. Payment of legal fees or at least a contribution to legal fees incurred by the employee in taking the relevant advice upon the terms of the agreement.

A negotiated reference can be a valuable benefit to an employee to assist them going forward. Most employers tend to provide basic facts of employment such as job title, start date and termination date. As part of the settlement agreement terms a more substantial reference could be negotiated. 

Also it is important that the contract of employment is reviewed as it may contain post termination restrictions that either need to be reiterated in the settlement agreement or negotiated on i.e. waived in part or in full under the terms of the agreement.


Author: Paul Grindley