What is included in a settlement agreement?

Each one will be different, though in general it will include:

• Amount of settlement payment
• The date of the employee’s last day working for the company
• All employment claims that the agreement will waive
• Confirmation that both parties obtained legal advice and who it was from

Common clauses included:

• Provisions for references (workers should take note of this, as if there is not a clause in which the employer agrees to give a favourable reference, they are not legally bound to)
• Confidentiality agreements
• Post-termination restrictive covenants (e.g. that the employee cannot engage the company’s current clients or staff for business purposes after their contract expires)
• Taxes applicable to payments involved
• Non-disparagement clause (preventing the employee from taking future actions that negatively impact the company)

For more information about drawing up a settlement agreement and what you should include, contact Helix Law.