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Settlement agreement checklist

Make it Legal™ Checklist

Here are a few important steps to take to finish your document

Read the document to make sure it meets your needs and that everyone involved agrees with the settlement agreement. The employee must receive independent legal advice before signing the agreement. Remember that if you have any questions you can easily Ask a lawyer.

Employers should be very careful when talking to employee’s about settlement agreements or departure, as they risk constructive dismissal. In particular:

  1. All written communications about settlement agreements or agreed departure terms should be marked Without Prejudice and Subject to Contract.

  2. Oral discussions should be agreed by employer and employee to be Without Prejudice.


Doing this should mean that the negotiations and communications are not admissible as evidence in court but this is not necessarily the case. For more information see our Quick Guide.

  1. Print a copy for the employer and a copy for the employee (the parties).

  2. Each party must sign and date both copies.

  3. The solicitor who has advised the employee must sign and date the solicitor’s certificate (Schedule 2).

  4. The date of the contract is the date on which the parties signed if that was the same day. If they signed on different days, then it is the day when the last person signed.

  1. The employer should keep the original signed agreement, as well as a copy for its records.

  2. The employee should keep their own original signed agreement.

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