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Keeping up to date

We take seriously our responsibility to keep you up to date so that you can use changes in employment law to commercial advantage. By understanding and interpreting the latest case law and legislation we can deliver updates to you that are concise and usable. With imagination, we are able to ensure that developing law can be used to allow you to achieve commercial solutions, cost effectively and expediently.

Keeping agreement confidential – don’t settle for less

Posted on: May 21st, 2020 by Ginny Hallam

A settlement agreement which explains that the employee has to keep the terms and existence of the agreement confidential (or they’ll repay the settlement money) is open to challenge according to a recent High Court decision.

We’ve updated our template COT3 and settlement agreement templates to ensure there’s the greatest chance of enforcing confidentiality provisions in light of the High Court’s judgement.

The Court did suggest there are still things you can do to ensure the enforceability  of these clauses:

  1. Explaining how important confidentiality is to you during negotiations;
  2. Re-wording agreements to say that keeping confidentiality is a “strict condition” of retaining the settlement money; and/or
  3. Stating that a specific portion of the settlement money is being paid in return for confidentiality – so you can seek to recover that part of the settlement money if the confidentiality clause is breached.

We’ve updated our template COT3 and settlement agreement templates to re-word the confidentiality provisions, to give them the greatest chance of being enforceable in light of the High Court’s judgement.

If you have your own settlement templates, we’d highly recommend that you review them – click here for our support in doing so.

This update is accurate on the date it was sent (22 May 2020), but may be subject to change which may or may not be notified to you. This update is not to be taken as advice and you should seek advice if anything contained within affects you or your business.