During the review of your settlement agreement, we will guide you through each section, ensuring that you have a clear understanding of its contents. Some of the key clauses that we will draw your attention to include, but are not limited to:
Termination Date: This specifies the date on which your employment will end if you sign the agreement.
Waiver: This clause addresses the potential employment tribunal claims that you are waiving by entering into the settlement agreement.
Payment: This outlines the monetary amount that you will receive in exchange for signing the agreement. This may also include a reference to additional benefits such as your pension, holiday and bonus arrangements.
Tax Indemnity: This clause pertains to your promise to reimburse the employer for any additional tax that may be due on the sums received.
Restrictive Covenants: These clauses, which may already be included in your employment contract, aim to restrict your ability to work for or contact certain individuals or companies that could be seen as competition to your employer. These may also be included in your settlement agreement and we can provide advice as to whether they are reasonable and therefore could be enforceable in the future.
Derogatory Comments: This clause prohibits you from making derogatory comments about your employer.
Confidentiality: This clause ensures that you will keep the terms of the agreement, including the payment amount, confidential.
Reference and announcement: While you do not have an automatic right to receive a reference, this clause can be included in the settlement agreement and can be particularly valuable if you have the opportunity to draft the reference yourself. You may also be able to agree how your departure from the business will be communicated to your colleagues, clients and other third parties.
Return of Company Property: This clause stipulates that you agree to return all company property on or before the termination date.