Employment law
Settlement agreement template for England and Wales employment exits, structured for parties, termination details, payment schedule, conditional clauses, warranties, and independent adviser completion before execution.
This template is structured to reflect statutory settlement agreement conditions under Employment Rights Act 1996 section 203 and equivalent machinery where relevant under Equality Act 2010 section 147, TULRCA 1992 section 288(2B), Working Time Regulations 1998 regulation 35(3), and National Minimum Wage Act 1998 section 49(4). It also follows current tax treatment framing for termination payments under ITEPA 2003 sections 401, 403, 404, and 402B.
A settlement agreement is a legally binding contract used to resolve employment disputes and record agreed termination terms, including payments and waiver categories. This template is designed as a structured draft that the employee can take to an independent adviser for advice and completion before execution.
Use this template where employment is ending and the parties want to agree final terms, including payment timing, confidentiality, references, and waiver categories. The agreement should be completed with independent adviser details and advice before it is executed to satisfy statutory conditions.
Last updated: 17 May 2026
The draft can be generated with adviser fields left blank, but statutory claim waiver conditions are only satisfied once the employee has received advice from a relevant independent adviser and the agreement is completed accordingly.
Yes. The template architecture includes a payment schedule framework covering termination payments and tax-treatment fields to be completed before execution.
Yes. The framework is drafted for England and Wales employment law context at launch.
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This draft settlement agreement is between [employer_legal_name] and [employee_full_name], with termination dated [termination_date].
The draft includes an itemised payment schedule including salary, holiday pay, and any agreed compensation heads where populated.
Optional confidentiality, non-derogation, restrictive covenant reaffirmation, and agreed-reference sections are included based on questionnaire choices.
Independent adviser details may be completed later and must be finalised before execution for statutory-condition compliance.
Execution, statutory-conditions framework, and schedule completion fields are included in the final paid document output.
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