There are many occasions in which you may need to come to a settlement agreement with your employer. For example, you may choose to initiate a settlement agreement following an unfair dismissal, workplace discrimination, or even as an alternative to accepting redundancy. Many of these agreements include a confidentiality clause. However, it is often debated as to whether or not they should be present in this kind of legal document. Should settlement agreements be confidential? Let’s explore.
Why Are Confidentiality Clauses Implemented in Settlement Agreements?
There are a few reasons why confidentiality clauses are implemented in settlement agreements. For example, they help to protect the anonymity of all involved parties, as well as any sensitive information relating to the agreement itself. Using one of the above examples, this could include the grounds for discrimination or wrongdoing on the employer’s or employee’s behalf.
While it can, on some level, feel as though confidentiality clauses are limiting, especially if you want to give others insight into what is happening, it is important to understand the potential benefits of this.
From the employer’s perspective, this can protect important company information and avoid potential damage to their reputation, depending on the outcome of the settlement. From an employee’s perspective, this ensures that their future job prospects are not limited.
What Happens If Confidentiality Clauses Are Breached?
If you were to breach a confidentiality clause, accidentally or otherwise, you could face significant consequences in the future. This is because the affected party will be able to press charges, which could lead to both legal trouble and hefty fines.
As such, you should be sure to read the terms of your settlement (and any relevant confidentiality clauses) carefully before signing. This way, you can better understand what is expected of you and ensure that your best interests are protected moving forward.
Top Tips For Negotiating A Settlement Agreement
Knowing what to consider when negotiating a settlement agreement can help you to put your best foot forward. You should enter all negotiations with an idea in mind of how much money you are rightfully owed and have evidence to hand to back up this claim. If you aren’t sure where to start in this regard, check out our settlement agreement calculator.
In addition to this, it is also advised that you do not accept the first offer that is put on the table. This is because the first offer put in place by an employer is often significantly lower than the total amount they would be willing to put forward. If you agree too soon, you may be selling yourself short in terms of compensation.
Legal processes, such as settlement agreements, can be incredibly stressful. As such, you may also benefit from seeking legal counsel during this time. Not only does this mean that your best interests are protected, but they are also on hand to answer any questions you may have or put your mind at ease.
Settlement Agreements with Premier Legal
At Premier Legal, we’re here to help by providing you with expert guidance and assistance every step of the way. Not only will this give you greater peace of mind and a sense of stability, but it also ensures that your best interests are protected.
This is because we are able to negotiate any unfavourable terms with your employer on your behalf, ensuring that you are able to access the relevant compensation packages. We can also provide you with guidance when it comes to accepting or rejecting an offer.
If the confidentiality clause embedded in your employer’s settlement agreement is a cause for concern, we will also be able to discuss this with you in more detail. If you’d like to find out more about the services we offer, please do not hesitate to get in touch today.
