Settlement Agreements: No ‘One Size Fits All’ Approach
Stephen Ravenscroft and Sarah Taylor of White & Case cite recent case law to discuss the importance of using clear wording when drawing up a settlement agreement.
“Settlement agreements are a very useful tool for an employer,” they explain. “They normally draw a line under the employment relationship and provide certainty that an employee will not bring any employment- related claims. Such an agreement is often used to reach a full and final settlement of any claims which the employee has or may have arising out of the employment and its termination, subject to certain exceptions such as claims for personal injury or accrued pension rights.”
They warn, however, that employers must be aware that there is no “standard” settlement agreement.