A Short Settlement Agreement is used when parties wish to resolve employment-related disputes efficiently under English and Welsh law. This streamlined document maintains all essential legal requirements while reducing complexity and length. It's particularly useful for straightforward settlements where both parties seek quick resolution. The agreement must comply with UK employment legislation, including the Employment Rights Act 1996 and Equality Act 2010, and requires independent legal advice to be valid. It typically includes settlement terms, confidentiality provisions, and tax arrangements.
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1. Parties: Identification of the parties entering into the agreement
2. Background: Brief context of the dispute or circumstances leading to settlement
3. Definitions: Key terms used throughout the agreement
4. Settlement Terms: Core settlement provisions including payment terms
5. Tax Indemnity: Provisions regarding tax treatment of settlement payment
6. Confidentiality: Obligations regarding confidentiality of the agreement and its terms
7. Legal Advice: Confirmation of independent legal advice received
1. Reference Provision: Terms regarding future employment references - used when settlement relates to employment matters
2. Non-Disparagement: Mutual obligations not to make derogatory statements - used when reputation protection is important
3. Return of Property: Provisions for returning company property - used when settlement relates to employment matters
1. Schedule 1 - Claims: List of specific claims being settled
2. Schedule 2 - Adviser's Certificate: Independent legal adviser's confirmation
3. Schedule 3 - Agreed Reference: Format of agreed employment reference if applicable
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