What are the usual clauses in a settlement agreement?

The 3 key elements are set out above (see ‘what is a settlement agreement?’) but it is usual for an employer to seek some standard additions. These include: the return of all company property; keeping confidential information confidential; keeping the existence and terms of the agreement private; and not making any derogatory statements about the business. Such clauses are standard and they are generally uncontroversial as they fit with the idea that the Settlement Agreement is a clean break.

Sometimes more is required, for example where an employer requires post-termination restrictions preventing completion, solicitation of customers and poaching of employees, and it is important for employers to take their own legal advice when offering a Settlement Agreement.

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