Settlement Agreement — Word & PDF Template

This Settlement Agreement is used to end the employment relationship on agreed terms, with the employee waiving claims in return for a settlement payment. It records the payments, confidentiality and continuing obligations, and includes the independent adviser’s certificate that makes the waiver legally binding under UK employment law.

Who is this template for?

It is designed for employers and employees agreeing an exit, whether on redundancy, a negotiated departure or to settle a dispute. The employee must take independent legal advice for the agreement to be effective, and the template provides for that.

What does the template include?

The agreement is fully structured and covers the essentials of a binding settlement:

• Parties — the employer and the employee.
• Background — context and reason for the agreement.
• Termination Payments — the sums payable to the employee.
• Timing of Payments — when payments will be made.
• Employee Warranties — the employee’s confirmations.
• Waiver and Full and Final Settlement — the claims being waived.
• Independent Legal Advice — the requirement to take advice.
• Confidentiality — keeping terms confidential.
• Continuing Obligations — obligations that survive termination.
• Governing Law and Jurisdiction — England and Wales jurisdiction.
• Adviser’s Certificate — certificate confirming advice was given.
• Signatures — execution by both parties.

Easy to customise

The template works in Microsoft Word, Google Docs and LibreOffice. Simply fill in the highlighted fields, tick the relevant checkboxes and edit any clauses to suit your arrangement. No special software is required.

Format and scope

The document downloads as an editable Word (.docx) file and a ready-to-print PDF, formatted to A4. It is drafted for use in England and Wales with light, general legal references.