Final Settlement Agreement for the United Kingdom

Final Settlement Agreement Template for England and Wales

A Final Settlement Agreement is a legally binding document under English and Welsh law that formally concludes the employment relationship between an employer and employee. It typically includes terms of separation, financial compensation, mutual obligations, and a waiver of potential claims. The agreement must comply with specific statutory requirements, including the provision of independent legal advice to the employee, to be legally enforceable.

Your data doesn't train Genie's AI

You keep IP ownership of your information

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Download a Standard Template

4.6 / 5
4.8 / 5
Access for free
OR

Alternatively: Run an advanced review of an existing
Final Settlement Agreement

Let Genie AI's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.
Upload your Doc

What is a Final Settlement Agreement?

A Final Settlement Agreement is commonly used in England and Wales when parties wish to achieve a clean break in their employment relationship while managing legal risks. It serves as a comprehensive resolution of all potential claims arising from employment and its termination. The document typically includes detailed provisions about financial settlements, confidentiality obligations, post-employment restrictions, and reference arrangements. To be legally valid, it must meet specific statutory requirements, including the employee receiving independent legal advice. This type of agreement is particularly useful in situations involving redundancy, workplace disputes, or senior executive departures.

What sections should be included in a Final Settlement Agreement?

1. Parties: Identification and details of all parties to the agreement

2. Background: Context of the dispute or circumstances leading to settlement

3. Definitions: Key terms used throughout the agreement

4. Settlement Terms: Core financial and non-financial terms of settlement

5. Waiver of Claims: Comprehensive list of claims being waived

6. Tax Provisions: Tax treatment of payments and related indemnities

7. Confidentiality: Obligations regarding confidentiality of the agreement and its terms

What sections are optional to include in a Final Settlement Agreement?

1. Post-termination Restrictions: Used when enforcing or modifying existing restrictive covenants. Include when employment contract contained restrictions or new ones are being imposed

2. Reference Provision: Terms of any agreed reference. Include when parties agree on specific reference terms

3. Company Property: Return of company property provisions. Include when employee holds company assets or data

4. Outplacement Support: Terms of any career transition support. Include when career support is part of settlement package

What schedules should be included in a Final Settlement Agreement?

1. Schedule of Claims: Detailed list of all claims being settled

2. Payment Schedule: Breakdown of settlement payments and timing

3. Agreed Reference: Form of agreed reference if applicable

4. Certificate of Independent Legal Advice: Confirmation of legal advice received by employee

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Publisher

Genie AI

Cost

Free to use
Clauses
Industries

Employment Rights Act 1996: Primary legislation governing employment rights, including statutory protections, unfair dismissal provisions, and requirements for validly waiving employment rights under Section 203. Essential for ensuring settlement agreements are legally binding.

Equality Act 2010: Comprehensive legislation addressing discrimination, protected characteristics, and equal pay provisions. Must be considered when drafting settlement agreements to ensure proper handling of potential discrimination claims.

Contract Law principles: Common law principles governing contract formation, consideration requirements, and capacity to contract. Fundamental to ensuring the settlement agreement is legally valid and enforceable.

Companies Act 2006: Relevant when settlement involves corporate entities, particularly regarding authority to sign and execute agreements on behalf of companies.

Limitation Act 1980: Establishes time limits for bringing claims. Important for drafting waiver provisions and understanding the scope of claims being settled.

Data Protection Act 2018 and UK GDPR: Legislation governing data protection and privacy requirements. Must be considered when handling personal information in settlement agreements.

Income Tax (Earnings and Pensions) Act 2003: Tax legislation relevant to settlement payments, including requirements for tax indemnities and proper treatment of various payment components.

Employment Tribunals Act 1996: Establishes jurisdiction for employment claims and tribunal procedures. Relevant for understanding the scope of claims being settled and proper tribunal references.

Senior Courts Act 1981: Governs High Court jurisdiction and enforcement provisions. Important for understanding enforceability of settlement agreements and potential jurisdiction issues.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

Find the exact document you need

Work Settlement Agreement

An England & Wales legal document settling employment termination terms, including compensation and confidentiality.

find out more

Settlement Agreement With Agreed Judgment

An England & Wales legal document resolving disputes with enforceable settlement terms and agreed court judgment.

find out more

Settlement Agreement Property

An England & Wales legal document resolving property disputes with agreed terms and compliance with property law.

find out more

Separation Agreement Property Settlement

An England & Wales legal document detailing property division during marital separation, pending potential divorce proceedings.

find out more

Mutual Consent Divorce Agreement

An England & Wales legal document detailing mutual divorce terms, including asset division and child custody arrangements.

find out more

Marriage Settlement Agreement

An England & Wales legal document detailing financial arrangements between spouses during and after marriage.

find out more

Landlord Tenant Settlement Agreement

An England & Wales legal document resolving residential tenancy disputes, detailing settlement terms and compliance with housing laws.

find out more

Judgment Settlement Agreement

An England & Wales agreement modifying court judgment terms for flexible debtor repayment arrangements.

find out more

Injury Settlement Agreement

An England & Wales legal document finalizing personal injury claims, detailing settlement terms and obligations.

find out more

Inheritance Settlement Agreement

An England & Wales legal document formalizing estate distribution and resolving inheritance disputes among beneficiaries.

find out more

Global Settlement Agreement Divorce

An England & Wales legal document detailing mutual divorce agreements on assets, finances, and family responsibilities.

find out more

Full And Final Settlement Agreement For Employee

A legal document finalizing an employee's compensation and obligations upon termination of employment.

find out more

Estate Family Settlement Agreement

A legal contract in England & Wales outlining terms for the sale and transfer of property ownership.

find out more

Divorce And Financial Agreement

A legal document from England & Wales granting power of attorney for financial and property affairs management.

find out more

Divorce Agreement

A legal document from England & Wales granting power of attorney for financial and property affairs management.

find out more

Dismissal Settlement Agreement

An English legal document finalizing employment termination terms and settling all potential claims between employer and employee.

find out more

Collision Settlement Agreement

A legal contract in England & Wales outlining terms for the sale and transfer of property ownership.

find out more

Car Settlement Agreement

A legal contract in England & Wales outlining terms for the sale and transfer of property ownership.

find out more

Agreement For Family Settlement

A legal agreement in England & Wales outlining terms for the transfer of property ownership between parties.

find out more

Amicable Settlement Agreement

A legal document from England & Wales granting power of attorney for financial and property affairs management.

find out more

Amending Divorce Agreement

A legal document from England & Wales granting power of attorney for financial and property affairs.

find out more

Accident Private Settlement Agreement

A legal agreement in England & Wales outlining terms for the transfer of property ownership between parties.

find out more

Hold Harmless Settlement Agreement

A legally binding agreement under English and Welsh law where one party releases another from liability and agrees to provide indemnification for specified claims.

find out more

Small Claims Court Settlement Agreement

A legally binding agreement under English and Welsh law that documents the settlement terms between parties in a small claims court dispute.

find out more

Settlement Stipulation Agreement

A legally binding agreement under English and Welsh law that documents the terms of settlement between disputing parties.

find out more

Average Settlement Compromise Agreement

A legally binding agreement under English law that settles general average claims between maritime parties following a shipping incident.

find out more

Limited Release Settlement Agreement

An English law agreement that settles specific claims between parties while preserving rights to pursue other claims not explicitly covered in the settlement.

find out more

Divorce Settlement Agreement Pension Fund

A legal agreement under English and Welsh law governing the division of pension assets between divorcing parties.

find out more

Partial Divorce Agreement

A legal document under English and Welsh law that establishes partial terms of agreement between divorcing spouses, leaving some matters for future resolution.

find out more

Non Payment Of Settlement Agreement

An English law agreement addressing breach of settlement terms through non-payment, outlining recovery mechanisms and enforcement options.

find out more

Federal Settlement Agreement

A legally binding agreement resolving disputes with federal entities under English and Welsh law.

find out more

Reaffirmation Settlement Agreement

An English law agreement that reconfirms parties' commitments to an existing contract while potentially modifying terms.

find out more

Pre Litigation Settlement Agreement

An English law agreement that resolves disputes before formal legal proceedings begin, setting out settlement terms between parties.

find out more

Neutral Reference Settlement Agreement

A legally binding agreement under English and Welsh law that establishes agreed terms for providing employment references.

find out more

Property Settlement Agreement After Divorce

A legally binding agreement under English law that documents the division of property assets between divorcing spouses.

find out more

Foreclosure Settlement Agreement

A legal agreement under English and Welsh law that settles mortgage default issues between lender and borrower, avoiding full foreclosure proceedings.

find out more

Family Settlement Agreement Probate

A legally binding agreement under England and Wales law that modifies the distribution of a deceased person's estate with the consent of all affected beneficiaries.

find out more

Bullying Settlement Agreement

A legally binding agreement under English and Welsh law that resolves workplace bullying allegations and establishes settlement terms between employer and employee.

find out more

Agreed Reference Settlement Agreement

A legally binding agreement under English and Welsh law that establishes agreed terms for employment references between employer and employee.

find out more

Employee Conflict Resolution Agreement

A legally binding agreement under English and Welsh law that establishes procedures for resolving workplace conflicts and disputes.

find out more
See more related templates

Genie’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; Genie’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

We are ISO27001 certified, so your data is secure

Organizational security:

You retain IP ownership of your documents and their information

You have full control over your data and who gets to see it

2 Docs LeftAccess Now