Five clauses to check in a settlement agreement

The payment is only part of the deal. The reference, confidentiality and tax wording matter just as much.

Two people shaking hands over a signed settlement agreement

A settlement agreement ends your claims against your employer, so every clause deserves a careful read.

The agreed reference

Ask for the wording to be attached to the agreement, so there is no doubt about what a future employer will see.

Tax treatment

The first part of a termination payment can often be paid tax free. Check that the agreement sets out how each payment is treated.