Settlement Agreement - Management & Sales
This Settlement Agreement – Management and Sales has been updated to reflect legal changes brought about by the Equality Act 2010 (Amendment) Order 2012.
The aim of a settlement agreement is to settle a dispute in the workplace with an employee or ex-employee. The employee agrees not to pursue claims against the employer, in return for a financial settlement. The objective for the employer is to avoid the cost of lengthy or divisive litigation arising out of an employment tribunal, as well as avoiding any reputational damage.
A settlement agreement is legally binding on the parties.
This Settlement Agreement – Management and Sales is designed to be used for management and sales staff, and other senior staff where ‘post termination restrictions’ are required.
A settlement agreement must specify the statutory claims being settled in order to be a binding waiver of those claims. Case law has shown that a ‘brief factual and legal description’ of the claim which has been raised by the employee (whether or not it is already the subject of legal proceedings) should be set out in the compromise agreement. Space has been provided for this purpose in the Schedule.
The Settlement Agreement contains a standard confidentiality clause requiring the employee to refrain from releasing details of the agreement. The agreement is compliant with the Employment Rights Act 1996, the Employment Act 2002 and the Equality Act 2010 (as amended), and is designed in accordance with current best practice.
Alternative Settlement Agreements for other levels of staff are available. The settlement agreement is stated to be "Without Prejudice". Clauses can be extended or deleted in accordance with Employer-Employee negotiation over employment termination.
This template is in open format. Either enter the requisite details in the highlighted fields or adjust the wording to suit your purposes.