Disclosure Of Settlement Agreement Template for England and Wales

A Disclosure Of Settlement Agreement is a legal document that allows parties to an existing settlement to share specific details with third parties while maintaining control over confidentiality. Under England and Wales law, this agreement becomes essential when you need to disclose settlement information for legitimate business purposes while protecting sensitive details from unauthorised use or further disclosure.

When do you need this document?

You'll need this agreement when your business is involved in due diligence processes, regulatory investigations, or corporate transactions where settlement details must be revealed. It's particularly important when seeking legal or financial advice about existing settlements, when complying with disclosure obligations to regulators, or when potential investors require information about your company's legal liabilities. Employment settlements often require disclosure to accountants for tax purposes or to insurance providers for coverage decisions. Without this agreement, you risk breaching the original settlement's confidentiality terms.

Key legal considerations

The scope of disclosure clause is critical as it defines exactly what information can be shared and with whom. You must carefully balance transparency requirements with confidentiality obligations from the original settlement. The purpose limitation clause restricts how disclosed information can be used, preventing recipients from using details beyond the agreed purpose. Confidentiality obligations for recipients are essential, often requiring them to sign separate non-disclosure agreements. Consider including liability provisions that protect you if recipients breach confidentiality terms. The agreement should specify whether disclosed information can be further shared by recipients and under what circumstances. Time limitations on disclosure rights help maintain long-term confidentiality while allowing necessary short-term sharing.

Legal requirements in England and Wales

Under the Employment Rights Act 1996, employment settlement disclosures must comply with statutory requirements regarding employee rights and obligations. The Equality Act 2010 ensures that disclosed information doesn't facilitate discriminatory practices or breach equality obligations. Civil Procedure Rules, particularly CPR 31 and Practice Direction 31A, govern disclosure requirements in litigation contexts and may influence how settlement information can be shared. The Protection from Harassment Act 1997 may be relevant if the original settlement involved harassment claims. You must ensure that disclosure doesn't breach data protection obligations under UK GDPR, particularly when personal data is involved. Professional privilege considerations under English law may affect what information can be disclosed to legal advisors. The agreement must be properly executed with appropriate witnessing to ensure enforceability under English contract law.