The Settlement Agreement Fixed Fee is commonly used in England and Wales when employment relationships need to be terminated in a mutually agreed and legally secure manner. This document is particularly useful when companies want to manage their risk and ensure certainty of costs while ending employment relationships. It provides a comprehensive framework for settling potential claims, detailing payment terms, and establishing post-employment obligations. The fixed fee structure makes it particularly attractive for businesses seeking cost predictability in their legal arrangements.
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1. Parties: Identification of the employer and employee
2. Background: Context of the settlement and employment relationship
3. Definitions: Key terms used throughout the agreement
4. Termination Date: Specification of employment end date and final working arrangements
5. Settlement Payments: Details of all payments to be made including timing and method
6. Tax Treatment: Tax implications of payments and tax indemnities
7. Waiver of Claims: Employee's waiver of legal claims and statutory rights
8. Confidentiality: Obligations regarding confidentiality of the agreement and company information
9. Legal Advice: Confirmation of independent legal advice received by the employee
1. Post-Termination Restrictions: Restrictions on future employment activities and competition
2. Reference: Terms of future employment references and communication about departure
3. Company Property: Requirements for return of company assets and intellectual property
4. Outplacement Support: Details of any career transition services provided
5. Garden Leave: Terms of any garden leave period prior to termination
1. Schedule 1: Payment Details: Detailed breakdown of settlement payment components
2. Schedule 2: Adviser's Certificate: Independent legal adviser's confirmation of advice given
3. Schedule 3: Agreed Reference: Template of agreed reference text
4. Schedule 4: Resignation Letter: Template resignation letter if applicable
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