Settlement agreement: employment (short form)

by Practical Law Employment

A Standard Document providing a short-form settlement agreement for straightforward employment terminations under the law of England and Wales. This Standard Document outlines the key terms for an employee or worker to waive legal claims against an employer in exchange for a termination payment. It is designed to achieve a full and final settlement of claims arising from the employment relationship and its termination, including potential claims for breach of contract, unfair dismissal, and discrimination under the Equality Act 2010. The agreement addresses the termination payment, tax considerations and the provision of a reference. It meets the statutory requirements for a valid waiver of claims, including the necessity for the employee to receive independent legal advice. It is drafted to take account of case law on waiving future claims and incorporates best practices for drafting non-disclosure provisions in line with regulatory guidance. For a more detailed agreement suitable for senior executives and other more complex terminations, see Standard document, Settlement agreement: employment (long form). For a settlement agreement where the employment contract is not termination, see Standard document, Settlement agreement (no termination). For a settlement agreement for use in civil litigation in non-employment matters, see Standard document, Settlement agreement and release: civil litigation. For a simple agreement suitable for use in Scotland, see Standard document, Settlement agreement: employment (short form) (Scotland).