As well as compensation in return for a waiver of claims it is likely that the agreement will include terms dealing with you handing back your employer’s property, the reference you can expect to receive, non-disclosure and confidentiality obligations, and any post-termination restrictions that could impact on what jobs or activities you can do in future.
There might also be terms governing what will happen to benefits like bonuses, health insurance, commission, and share options.
There are also likely to be terms setting out the tax treatment of various payment and benefits under the agreement.
In order to amount to a binding and valid waiver of claims a settlement agreement will contain a number of formal looking clauses and is likely to list a swathe of legislation and specific claims you are giving up.
We can explain all of this to you so you know what you are signing up to.
Because an individual needs to take advice on the terms of a settlement agreement the agreement will usually also provide for the employer to cover an employee’s costs.