Obligations under a Settlement Agreement

Very often Settlement Agreements come about after what can have been a very stressful period for employees. Leaving a job in any circumstances can be difficult and it can be challenging to keep on top of things. One thing that is very important to be aware of is that, generally, under a Settlement Agreement both the employer and the employee make mutual promises to each other. Given the nature of the legal language used in Settlement Agreements it can be difficult to understand your obligations to your ex-employer under your Settlement Agreement.

Common obligations under a Settlement Agreement include:

  • Promising not to bring a claim against your employer;

  • Returning all property belonging to your employer;

  • Not going to work for a competitor business for a certain amount of time;

  • Ensuring that any confidential information you may have known during your employment is kept secret after you leave; and

  • Promising not to discuss the terms of your Settlement Agreement with anyone.

Please be aware that very often employers will include a clause which states that any money paid to the employee under the terms of a Settlement Agreement may be recoverable from the employee as a debt if the employee is found to have broken any of their promises under the agreement. This means that your ex-employer could sue you for the money that they paid to you if they found out that, for example, you have spoken to former colleagues about how much money you received.

This is one of the many reasons that you are required to take advice on the terms of your Settlement Agreement. Please do contact us should you require advice or have any questions.

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