Frequently asked questions.

Frequently asked questions.

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What claims will I be expected to waive under a settlement agreement?

In general terms, if you sign a settlement agreement then you will (should the settlement agreement be well-drafted, which they usually are) normally be settling any and all past, present or future claims that you could have against your employer (or its employees, directors etc.) arising out of your employment or the termination of your employment – as well as other claims, the settlement agreement will almost always settle the following:

  • Any claim for unfair dismissal or constructive unfair dismissal
  • Any claim for breach of contract or wrongful dismissal
  • Any claim for any outstanding holiday pay
  • Any claim for any statutory or enhanced redundancy payment
  • Any claim for discrimination, harassment or victimisation

Although you will normally be settling all of the above claims, you will not normally be settling the following types of claim under a settlement agreement:

  • Any claim for any personal injury that you’re not aware of (and should not reasonably be aware of) as of the date that you sign the agreement;
  • Any claim for your accrued pension;
  • Any claim to enforce the terms of the settlement agreement

You can technically try and ‘carve out’ any type of claim that you want to preserve your ability to bring, but your employer will also want to try and reduce your ability to bring a claim after you sign the settlement agreement (so you should normally expect some ‘push back’ if you try and carve out particular claims).