Q&As

If a settlement agreement meeting the statutory conditions (eg of section 23 of the Employment Rights Act 1996) has been entered into, but it is subsequently agreed to vary the confidentiality clause to permit disclosure of the existence of the agreement to a pension provider, is it necessary for the employee to receive independent legal advice on the proposed variation?

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Published on LexisPSL on 12/12/2019

The following Employment Q&A provides comprehensive and up to date legal information covering:

  • If a settlement agreement meeting the statutory conditions (eg of section 23 of the Employment Rights Act 1996) has been entered into, but it is subsequently agreed to vary the confidentiality clause to permit disclosure of the existence of the agreement to a pension provider, is it necessary for the employee to receive independent legal advice on the proposed variation?

A settlement agreement is a contract between parties (whether employee and employer, prospective litigants in other areas of law or otherwise) which can be used to set out the terms on which a dispute is compromised. They are commonly used in the employment setting to end the employment relationship on agreed terms and, in particular, are used to waive any claims that the employee may have in consideration of those terms.

In the context of employment, settlement agreements must comply with the requirements of section 203(3) of the Employment Rights Act 1996 (ERA 1996). This is because the section provides that any provision in a contract purporting to exclude or limit the operation of any provision in ERA 1996, or to preclude a person from bringing proceedings under ERA 1996 before an employment tribunal is void unless those requirements are complied with. The requirement

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