Your Settlement Agreement Solicitor

The Settlement Agreement Solicitor

Episode 7 – Non-Financial Benefits in a Settlement Agreement

Welcome back to The Settlement Agreement Solicitor, the podcast where I, Geoffrey Caesar, guide you through the ins and outs of settlement agreements with the benefit of over 20 years’ experience as a solicitor of England and Wales specialising in settlement agreements.

In this episode, Episode 7, we will be talking about non-financial benefits that can be included in a settlement agreement.

When most people think of settlement agreements, the first thing that comes to mind is, of course, the compensation—how much am I getting, and how will it be paid? But what many do not realise is that settlement agreements can include a variety of non-financial benefits. Depending on your situation, these additional terms can be just as valuable, if not more so.

Let's dive into a few examples.

1. Agreed Reference

One of the most common non-financial elements is an agreed reference. After leaving a job, especially in contentious circumstances, your future job prospects might be one of your biggest concerns. An agreed reference can be an important way to control the narrative about your departure. It is a pre-written document that outlines what your former employer will say if a prospective employer calls for a reference. This is vital in safeguarding your reputation and ensuring that nothing damaging or unfair gets said in future employment checks.

2. Confidentiality Clauses

Most settlement agreements will include some form of confidentiality clause, where both sides agree not to discuss the terms of the agreement or, in some cases, the fact that a settlement has even been reached. While this might seem like it mainly benefits the employer, it can also be highly beneficial to the employee.

If the circumstances of your departure are sensitive, a confidentiality clause can protect your reputation and give you peace of mind that your former employer won’t disclose the situation.

3. Non-Disparagement Clauses

Closely linked to confidentiality is a non-disparagement clause. This is an agreement where both parties promise not to bad-mouth each other publicly. For employees, this can be a particularly useful safeguard against any negative comments or reputational damage after you leave. Think of it as a bit of extra protection to ensure no one’s talking about you in a way that could harm your future career.

4. Return of Property and Retention of Benefits

You might also see terms about the return of company property. But, in some cases, there can be negotiation around retaining certain benefits. For example, if you had a company car, the agreement might allow you to keep it for a period of time after your employment ends.

Similarly, things like private healthcare, life insurance, or gym memberships may be extended for a period as part of the settlement.

5. Outplacement Support

Outplacement support is another powerful non-financial benefit, especially if you’re concerned about finding a new job. This could involve your employer covering the costs of career coaching, CV writing services, or even retraining. It’s a way to help you transition smoothly into your next role, which can be invaluable when you’re at a crossroads in your career.

6. Apology or Statement of Regret

This next one might surprise you, but some people negotiate for an apology or a statement of regret from their employer. It’s not common, but in some cases, especially where workplace mistreatment or miscommunication is involved, getting a formal apology can provide emotional closure. It won’t be for everyone, but for some, it can be an important part of moving forward.

7. Mutual Agreement on Public Statements

Lastly, public statements, particularly for more senior employees or those in public-facing roles. Negotiating a mutually agreed press release or public announcement about your departure is possible. This can help manage how your exit is perceived by the outside world, giving you control over the message that’s put out there.

As you can see, settlement agreements aren’t just about the financial payout. Non-financial benefits can be just as crucial, particularly when it comes to your reputation, future career prospects, and personal peace of mind.

When negotiating a settlement, always remember that it’s not just about what you’re walking away with monetarily but how you’re positioning yourself for the future. A well-crafted settlement agreement can protect your interests long after your departure from the company.

And that wraps up today’s episode. I hope you found this dive into non-financial benefits helpful. As always, if you’re dealing with a settlement agreement or just have questions, feel free to reach out to me, Geoffrey Caesar, your go-to expert on settlement agreements.