For a Settlement Agreement to be binding, it must contain certain prescribed clauses, including confirmation that independent legal advice has been taken, the identity of the adviser, and that the statutory conditions have been satisfied.
From the employee’s perspective, the agreement should clearly set out: the total compensation being paid and the tax treatment of each payment; any ongoing benefits; which legal claims are being waived; notice and termination arrangements (including return of company property); payment dates; confidentiality provisions; any restrictive covenants; non-disparagement clauses; and – where agreed – the wording of any future reference.