• Location: Manchester

Category Archives: Blogs

A Guide to Post Termination Restrictions

A Guide to Post Termination Restrictions

A new role may be ready to start, but the restrictions you agree when leaving can affect what you are able to do next. This guide to post termination restrictions explains the clauses commonly found in UK employment contracts and settlement agreements, what they may prevent, and where there may be room to negotiate.

Post-termination restrictions are often described as restrictive covenants. They are designed to protect an employer after employment ends, usually by limiting contact with clients, colleagues, suppliers or competitors for a defined period. They can be legitimate, but they should not be accepted as standard wording without careful review.

What are post-termination restrictions?

A post-termination restriction is a contractual promise that applies after your employment has ended. It may already appear in your employment contract, or be repeated, amended or newly introduced in a settlement agreement.

The precise wording matters. A clause that says you cannot work for a competitor is very different from one that prevents you from approaching clients with whom you had material dealings in the previous 12 months. A settlement agreement may also confirm that existing restrictions remain in force, even where the agreement itself does not set out the full wording.

The most common restrictions concern non-compete activities, non-solicitation of customers or staff, non-dealing with customers, and non-interference with suppliers or other business contacts. Some agreements also contain obligations about confidential information, company property, announcements and social media.

The restrictions you are most likely to see

A non-compete clause seeks to stop you from working for, setting up or helping a competing business. This is usually the most significant restriction because it can directly affect your choice of future employment. Its scope may depend on the type of work you would carry out, the businesses defined as competitors and the geographical area covered.

A non-solicitation clause normally prevents you from actively encouraging clients, customers or colleagues to move away from your former employer. It does not always prevent a client or former colleague from approaching you without prompting, although the wording must be checked carefully.

A non-dealing clause goes further. It can prevent you from doing business with certain customers even if they make the first approach. This can be particularly restrictive for sales professionals, account managers, consultants and senior employees with long-standing client relationships.

A non-poaching clause, sometimes called a non-solicitation of employees clause, restricts attempts to recruit former colleagues. The definition of a protected employee is important. It may cover only senior staff or anyone employed by the business.

Confidentiality obligations are slightly different. They do not usually stop you taking a new job, but they can prevent you using or disclosing trade secrets, customer information, pricing, strategy and other confidential material. These duties may continue for an indefinite period in relation to genuine trade secrets.

Are post-termination restrictions enforceable in the UK?

Not every restriction is enforceable simply because it appears in a signed document. Under English law, a post-termination restriction must protect a legitimate business interest and go no further than is reasonably necessary to protect it.

Legitimate interests may include confidential information, customer connections, supplier relationships and workforce stability. Preventing ordinary competition, without more, is not generally enough. The employer must be able to show why the restriction is justified for the role you held and the information or relationships you had.

A tribunal or court would look closely at the wording, duration, geographical reach and the people or businesses covered. A six-month restriction may be reasonable for a senior executive with influence over key clients, yet excessive for a junior employee with no client responsibility. There is no single acceptable period. The answer depends on the facts at the time the restriction was agreed.

That said, it is rarely sensible to assume a clause can safely be ignored. Even a restriction that appears broad may lead to dispute, delay or costly correspondence when you are trying to move on. Obtain advice before acting in a way that could be alleged to breach it.

A guide to post termination restrictions in settlement agreements

A settlement agreement is an opportunity to check whether restrictions are being preserved, expanded or introduced for the first time. The agreement should make this clear. You should not have to piece together your obligations from a combination of contract clauses, schedules and broad statements that you have complied with every duty owed to the employer.

Look first for a clause confirming that restrictive covenants in your employment contract continue after termination. Compare it with your original contract. Has the duration changed? Has the list of protected customers been widened? Is a new non-compete restriction being added? These are meaningful changes, not administrative details.

A settlement agreement may also include a warranty that you have not accepted another role that would breach your obligations. If you have a job offer, are setting up a business or are in discussions with a potential client, this needs careful attention. A warranty should not force you to make a statement that is uncertain or untrue.

For employees, independent legal advice is required for a settlement agreement to validly waive statutory employment claims. That advice should cover the practical effect of post-termination restrictions as well as the claims being settled, compensation, tax treatment, confidentiality and reference wording.

What to check before you sign

Start with the question: what does this prevent me from doing in real life? Read the clause alongside your likely next step, rather than treating it as abstract legal language.

Consider the following points:

  • Duration: How long does the restriction last? Periods often run from the termination date, although the wording should be checked where garden leave is involved.
  • Restricted activities: Does it apply only to work that competes with your former role, or to any work for a competing organisation?
  • Protected contacts: Are customers limited to people you dealt with recently, or does the clause cover every customer, prospect or supplier of the business?
  • Geographical scope: Is the area relevant to your work, particularly if your role was UK-wide or international?
  • Definitions: Are terms such as competitor, customer, senior employee and confidential information defined with sufficient precision?
  • New obligations: Does the settlement agreement impose restrictions that were not in your employment contract?

It is also worth checking the interaction with any garden leave provision. During garden leave, you remain employed and are normally paid, but may be instructed not to work or contact clients. A post-termination restriction then starts afterwards. Together, the two periods can create a lengthy practical barrier to a new role.

Can restrictive covenants be negotiated?

Yes. A proposed settlement agreement is a commercial negotiation, and restrictive covenants can form part of it. Whether an employer will agree to changes depends on the role, the reason for departure, the risk it sees and the overall settlement package.

Useful changes may include reducing the duration, limiting customer restrictions to contacts you worked with in a stated period, removing a non-compete clause, or adding a clear carve-out for a named new employer or role. If you are joining a business that overlaps only partially with your former employer, a tightly drafted exception may offer more protection than vague reassurance given in conversation.

Where an employer wants a new or stronger restriction, it is reasonable to ask why it is needed and whether the settlement payment reflects the added limitation. A payment made under a settlement agreement does not automatically make every covenant enforceable, but the commercial value of what you are being asked to give up should be considered.

Employers also benefit from clarity. Overly broad wording may create uncertainty rather than protection. A focused covenant that addresses a genuine risk is more likely to be credible, easier to explain and less likely to derail an otherwise amicable exit.

Do not overlook confidentiality and non-disparagement clauses

Restrictions on future work are only one part of the picture. Settlement agreements commonly include confidentiality clauses covering the agreement, its terms and the circumstances of termination. They may also contain non-disparagement obligations that limit negative statements about the employer or individuals.

These clauses should allow appropriate disclosures, such as speaking to a spouse or partner, professional advisers, HMRC, regulators or the police where necessary. They should not prevent protected disclosures or reporting wrongdoing. The wording should also be mutual where that is appropriate, particularly if the agreement requires you to protect the employer’s reputation.

Before you sign, ask for clear, independent advice on what you are agreeing to, how it affects your planned next move and whether the terms genuinely match the circumstances of your departure. A carefully reviewed agreement can give both sides the certainty to leave matters behind and let you take the next opportunity with confidence.

A Guide to Post Termination Restrictions

A Guide to Post Termination Restrictions

A new role may be ready to start, but the restrictions you agree when leaving can affect what you are able to do next. This guide to post termination restrictions explains the clauses commonly found in UK employment contracts and settlement agreements, what they may prevent, and where there may be room to negotiate.

Post-termination restrictions are often described as restrictive covenants. They are designed to protect an employer after employment ends, usually by limiting contact with clients, colleagues, suppliers or competitors for a defined period. They can be legitimate, but they should not be accepted as standard wording without careful review.

What are post-termination restrictions?

A post-termination restriction is a contractual promise that applies after your employment has ended. It may already appear in your employment contract, or be repeated, amended or newly introduced in a settlement agreement.

The precise wording matters. A clause that says you cannot work for a competitor is very different from one that prevents you from approaching clients with whom you had material dealings in the previous 12 months. A settlement agreement may also confirm that existing restrictions remain in force, even where the agreement itself does not set out the full wording.

The most common restrictions concern non-compete activities, non-solicitation of customers or staff, non-dealing with customers, and non-interference with suppliers or other business contacts. Some agreements also contain obligations about confidential information, company property, announcements and social media.

The restrictions you are most likely to see

A non-compete clause seeks to stop you from working for, setting up or helping a competing business. This is usually the most significant restriction because it can directly affect your choice of future employment. Its scope may depend on the type of work you would carry out, the businesses defined as competitors and the geographical area covered.

A non-solicitation clause normally prevents you from actively encouraging clients, customers or colleagues to move away from your former employer. It does not always prevent a client or former colleague from approaching you without prompting, although the wording must be checked carefully.

A non-dealing clause goes further. It can prevent you from doing business with certain customers even if they make the first approach. This can be particularly restrictive for sales professionals, account managers, consultants and senior employees with long-standing client relationships.

A non-poaching clause, sometimes called a non-solicitation of employees clause, restricts attempts to recruit former colleagues. The definition of a protected employee is important. It may cover only senior staff or anyone employed by the business.

Confidentiality obligations are slightly different. They do not usually stop you taking a new job, but they can prevent you using or disclosing trade secrets, customer information, pricing, strategy and other confidential material. These duties may continue for an indefinite period in relation to genuine trade secrets.

Are post-termination restrictions enforceable in the UK?

Not every restriction is enforceable simply because it appears in a signed document. Under English law, a post-termination restriction must protect a legitimate business interest and go no further than is reasonably necessary to protect it.

Legitimate interests may include confidential information, customer connections, supplier relationships and workforce stability. Preventing ordinary competition, without more, is not generally enough. The employer must be able to show why the restriction is justified for the role you held and the information or relationships you had.

A tribunal or court would look closely at the wording, duration, geographical reach and the people or businesses covered. A six-month restriction may be reasonable for a senior executive with influence over key clients, yet excessive for a junior employee with no client responsibility. There is no single acceptable period. The answer depends on the facts at the time the restriction was agreed.

That said, it is rarely sensible to assume a clause can safely be ignored. Even a restriction that appears broad may lead to dispute, delay or costly correspondence when you are trying to move on. Obtain advice before acting in a way that could be alleged to breach it.

A guide to post termination restrictions in settlement agreements

A settlement agreement is an opportunity to check whether restrictions are being preserved, expanded or introduced for the first time. The agreement should make this clear. You should not have to piece together your obligations from a combination of contract clauses, schedules and broad statements that you have complied with every duty owed to the employer.

Look first for a clause confirming that restrictive covenants in your employment contract continue after termination. Compare it with your original contract. Has the duration changed? Has the list of protected customers been widened? Is a new non-compete restriction being added? These are meaningful changes, not administrative details.

A settlement agreement may also include a warranty that you have not accepted another role that would breach your obligations. If you have a job offer, are setting up a business or are in discussions with a potential client, this needs careful attention. A warranty should not force you to make a statement that is uncertain or untrue.

For employees, independent legal advice is required for a settlement agreement to validly waive statutory employment claims. That advice should cover the practical effect of post-termination restrictions as well as the claims being settled, compensation, tax treatment, confidentiality and reference wording.

What to check before you sign

Start with the question: what does this prevent me from doing in real life? Read the clause alongside your likely next step, rather than treating it as abstract legal language.

Consider the following points:

  • Duration: How long does the restriction last? Periods often run from the termination date, although the wording should be checked where garden leave is involved.
  • Restricted activities: Does it apply only to work that competes with your former role, or to any work for a competing organisation?
  • Protected contacts: Are customers limited to people you dealt with recently, or does the clause cover every customer, prospect or supplier of the business?
  • Geographical scope: Is the area relevant to your work, particularly if your role was UK-wide or international?
  • Definitions: Are terms such as competitor, customer, senior employee and confidential information defined with sufficient precision?
  • New obligations: Does the settlement agreement impose restrictions that were not in your employment contract?

It is also worth checking the interaction with any garden leave provision. During garden leave, you remain employed and are normally paid, but may be instructed not to work or contact clients. A post-termination restriction then starts afterwards. Together, the two periods can create a lengthy practical barrier to a new role.

Can restrictive covenants be negotiated?

Yes. A proposed settlement agreement is a commercial negotiation, and restrictive covenants can form part of it. Whether an employer will agree to changes depends on the role, the reason for departure, the risk it sees and the overall settlement package.

Useful changes may include reducing the duration, limiting customer restrictions to contacts you worked with in a stated period, removing a non-compete clause, or adding a clear carve-out for a named new employer or role. If you are joining a business that overlaps only partially with your former employer, a tightly drafted exception may offer more protection than vague reassurance given in conversation.

Where an employer wants a new or stronger restriction, it is reasonable to ask why it is needed and whether the settlement payment reflects the added limitation. A payment made under a settlement agreement does not automatically make every covenant enforceable, but the commercial value of what you are being asked to give up should be considered.

Employers also benefit from clarity. Overly broad wording may create uncertainty rather than protection. A focused covenant that addresses a genuine risk is more likely to be credible, easier to explain and less likely to derail an otherwise amicable exit.

Do not overlook confidentiality and non-disparagement clauses

Restrictions on future work are only one part of the picture. Settlement agreements commonly include confidentiality clauses covering the agreement, its terms and the circumstances of termination. They may also contain non-disparagement obligations that limit negative statements about the employer or individuals.

These clauses should allow appropriate disclosures, such as speaking to a spouse or partner, professional advisers, HMRC, regulators or the police where necessary. They should not prevent protected disclosures or reporting wrongdoing. The wording should also be mutual where that is appropriate, particularly if the agreement requires you to protect the employer’s reputation.

Before you sign, ask for clear, independent advice on what you are agreeing to, how it affects your planned next move and whether the terms genuinely match the circumstances of your departure. A carefully reviewed agreement can give both sides the certainty to leave matters behind and let you take the next opportunity with confidence.

Can Employers Pay Legal Fees in Settlement Agreements?

A settlement agreement may arrive alongside an offer to contribute towards legal advice, often described as a contribution to your solicitor’s fees. This can feel reassuring, but it also raises a sensible question: can employers pay legal fees without affecting whether the advice is truly independent? In most cases, yes. Employer-funded advice is a standard and legitimate part of the UK settlement agreement process, provided your adviser acts for you, not your employer.

The contribution is there for a practical reason. A settlement agreement normally cannot validly waive statutory employment claims unless you have received advice from an independent adviser. That advice must cover the terms and effect of the agreement, particularly the rights you may be giving up. Paying a contribution helps make that requirement workable and allows both sides to move towards a clear, informed outcome.

Can Employers Pay Legal Fees for Your Advice?

Yes. Employers can pay, or agree to pay, a contribution towards the employee’s legal fees for independent advice on a settlement agreement. The payment does not make the solicitor the employer’s solicitor. Your adviser remains professionally obliged to act in your best interests, explain the agreement in plain English and identify terms that may need clarification or negotiation.

Usually, the agreement will state that the employer will pay a fixed sum plus VAT, provided you sign the agreement. The legal adviser then sends an invoice to the employer, or the employer pays the agreed amount through its usual payment process. In some cases, you may pay the fee first and seek reimbursement, although direct payment is often simpler.

The employer’s contribution is commonly limited. It may be enough for an initial review, advice and signing, but not necessarily for substantial negotiations, lengthy correspondence or a complicated dispute. That distinction matters. Do not assume that an offer of legal fees means every aspect of your situation has been funded.

Why Employers Offer a Legal Fee Contribution

For an employer, contributing to legal costs helps ensure the settlement agreement is legally effective. It reduces the risk of an employee later arguing that they did not understand the document or did not obtain the independent advice required by law.

For an employee, it creates an opportunity to obtain confidential advice before deciding whether to accept the offer. A solicitor can assess the proposed compensation, tax wording, notice arrangements, reference, confidentiality clauses, post-termination restrictions and the scope of claims being waived.

This does not mean the employer is being generous without a commercial purpose. A settlement agreement is normally an exchange: the employer provides agreed payments and other terms, while the employee agrees not to bring specified employment claims. The legal fee contribution supports that process, but it should not distract from the main question: is the overall package fair for you?

Is There a Set Amount an Employer Must Pay?

No. There is no statutory fixed amount that an employer must contribute towards legal fees for a settlement agreement. The right figure depends on the agreement, the seniority of the role, the value and complexity of any potential claims, and whether negotiations are likely to be needed.

A straightforward agreement with standard terms may require only a modest contribution. A senior executive agreement, or one involving bonus disputes, share options, restrictive covenants, a grievance, discrimination concerns or an agreed reference, can require more detailed advice. If the offered contribution is too low to cover the work needed, it may be reasonable to ask the employer to increase it.

Your request should be proportionate and specific. For example, if the agreement contains extensive confidentiality obligations, requires you to give warranties about company information, or restricts your future work, those are clear reasons why a more thorough review may be required. A sensible employer will often recognise that a properly advised agreement benefits both parties.

What Should the Employer’s Contribution Cover?

Before instructing an adviser, check what the fee contribution is intended to cover. It is helpful if the agreement or accompanying correspondence makes this clear. In a straightforward matter, the contribution may cover the review of the agreement, an advice meeting, advice on the effect of the waiver of claims and the signing of the adviser’s certificate.

Where appropriate, ask whether it also covers reasonable work on amendments or negotiations. This is particularly relevant if there are terms you may wish to improve. Common areas include:

  • the termination date, notice pay and holiday pay;
  • the compensation figure and how each payment is described;
  • an agreed reference or announcement to colleagues and clients;
  • restrictive covenants that could affect your next role; and
  • confidentiality, non-derogatory statements and exceptions for protected disclosures.

A contribution limited to signing advice may still be useful, but it may not cover a prolonged negotiation. Your solicitor should explain the likely scope of work and any cost exposure before taking further steps.

Independence Matters More Than Who Pays

The adviser must be independent of the employer. In practical terms, this means they cannot be acting for the employer in connection with the agreement, and they must have appropriate professional indemnity insurance. They should also be able to give you candid advice, including advice that the proposed terms are not good enough or that you should not sign yet.

You are free to choose your own solicitor, provided they are qualified to give the required advice. An employer may suggest a firm, but the decision remains yours. Some employers provide a list of advisers familiar with settlement agreements; others leave the choice entirely to the employee.

If an employer insists that you use a particular adviser, seeks to control the advice you receive or asks your solicitor to report back on your discussions, pause and seek clarity. Your legal advice is confidential. The employer may receive an invoice and confirmation that advice has been given, but it is not entitled to a report on what you discussed with your solicitor.

Tax Treatment of Legal Fee Payments

The tax position should be checked carefully, especially where a settlement package includes several different payments. As a general rule, an employer’s payment of your legal costs for advice on the settlement agreement can be made without creating a tax charge for you, where the payment is made directly to the adviser and relates to the termination of employment.

The facts and wording still matter. Fees for advice on matters outside the settlement agreement, or money paid to you as a general allowance rather than directly towards legal costs, may need separate consideration. Your agreement should set out the employer’s obligation clearly, including whether the stated contribution is inclusive or exclusive of VAT.

Tax on the compensation itself is a separate issue. Notice pay, holiday pay, unpaid wages and certain bonuses are generally taxed through payroll. Part or all of a termination payment may be paid without income tax up to the relevant statutory threshold, subject to the applicable rules. A careful review helps prevent an apparently attractive offer from being misunderstood once deductions are made.

When It Is Worth Asking for More Legal Fees

You do not need to challenge every contribution automatically. If the agreement is short, the terms are clear and the offered sum covers proper independent advice, accepting it may be entirely reasonable.

It is worth raising the issue where the agreement is unusually detailed, the proposed exit follows a dispute, or the package requires meaningful negotiation. This may apply if you have raised a grievance, are on sickness absence, believe you have been treated unfairly, are pregnant or on family leave, or have concerns about discrimination or whistleblowing. These circumstances do not guarantee a higher legal contribution, but they can make detailed advice essential.

An increased contribution can also be appropriate where you need advice on restrictive covenants. A clause preventing you from approaching clients, recruiting former colleagues or working for competitors can have real consequences after you leave. It should not be treated as boilerplate simply because it appears in the employer’s standard agreement.

Do Not Let the Fee Contribution Rush Your Decision

Settlement agreements often come with a deadline. Employers may want certainty, particularly during a redundancy process or where an employment relationship has broken down. A short deadline does not mean you should sign without understanding the terms.

Ask for the agreement, the proposed payment breakdown and any relevant background documents in writing. Obtain independent advice before signing. A good adviser will tell you what is standard, what is negotiable and where the agreement may leave you exposed. They can also help you decide whether the employer’s legal fee contribution is enough for the work your circumstances require.

The contribution towards legal fees is useful, but it is not the value of the deal. The real value lies in having clear, independent advice before you give up rights that may be difficult to recover later. If anything in the agreement feels unclear or unfair, take that concern seriously and get it reviewed before the deadline passes.

How to Challenge Confidentiality Clauses

How to Challenge Confidentiality Clauses

A confidentiality clause can look like a short standard paragraph near the end of a settlement agreement. In practice, it may affect what you can say about your departure for years to come. Knowing how to challenge confidentiality clauses is therefore not about creating conflict. It is about making sure you understand the commitment you are being asked to give, and that it is fair, lawful and workable in real life.

You do not have to accept wording simply because it appears in the employer’s draft. Settlement agreements are negotiated documents. If a clause is unclear, too broad or prevents legitimate conversations, it may be appropriate to ask for changes before signing.

Start with what the clause actually covers

Confidentiality provisions vary considerably. Some prevent either party from disclosing the financial terms of the agreement. Others cover the circumstances of the employment ending, workplace concerns, business information or statements made about the employer after departure.

The first task is to separate these subjects. An employer may have a legitimate interest in protecting confidential business information, customer data, trade secrets and the agreed settlement sum. That does not automatically justify wording that prohibits you from speaking about every aspect of your work or prevents necessary disclosures in the future.

Read the clause alongside any existing confidentiality obligations in your contract of employment. A settlement agreement should not leave you uncertain about whether it creates new obligations, extends old ones, or duplicates terms that already apply. It should also be clear whether the restriction applies only to you or to both parties.

Broad phrases such as “all matters connected with your employment” or “any information relating to the company” deserve careful attention. Their meaning may be wider than intended. Ask for specific definitions, particularly where the agreement uses terms such as confidential information, the termination, or the dispute.

When can you challenge confidentiality clauses?

You can raise concerns whenever proposed wording does not reflect the reality of your situation or places an unreasonable burden on you. This is common where the agreement follows a grievance, disciplinary process, redundancy exercise, discrimination concern or workplace dispute.

A clause may need changing if it does any of the following:

  • prevents you from discussing the agreement with your spouse, partner or close family;
  • fails to allow discussions with your solicitor, tax adviser, doctor, therapist or professional counsellor;
  • restricts communications with HMRC, a regulator, the police, a court or tribunal;
  • appears to stop you making a protected disclosure, often called whistleblowing;
  • prevents you from explaining your employment history accurately to a prospective employer; or
  • imposes one-sided obligations, while allowing the employer to make statements about you without equivalent limits.

The law does not permit an agreement to prevent a protected disclosure. Nor can a confidentiality clause lawfully stop a person reporting a crime or co-operating with a criminal investigation. However, it is still sensible for the written exceptions to be clear. You should not have to guess whether a necessary disclosure could be treated as a breach.

It also matters whether the clause is proportionate. A limited commitment not to disclose the settlement amount may be easier to justify than an indefinite ban on discussing your experience with anyone. The right balance depends on the reason for the agreement, your seniority, the nature of the information involved and the compensation offered.

Ask for practical carve-outs, not vague reassurance

Employers sometimes say they would not seek to enforce a clause in ordinary circumstances. That may be reassuring, but it is not a substitute for clear written wording. If an exception matters to you, it should usually appear in the agreement.

A well-drafted confidentiality clause will normally permit disclosure to professional advisers who are themselves bound by duties of confidence. It should also allow disclosures required by law, to relevant regulatory or tax authorities, and for the purpose of enforcing the agreement.

Depending on your circumstances, you may also need permission to speak to immediate family, a new employer, recruitment consultants, insurers or healthcare professionals. The wording can require those people to keep the information confidential where appropriate. This gives the employer reasonable protection without isolating you from the support and advice you may need.

If you are concerned about a future job search, discuss this directly. You may need to tell a recruiter why you left, explain a gap in employment, or respond honestly to a question from a prospective employer. It is possible to agree a short, neutral form of words. This should sit consistently with any agreed reference, so you are not left with one clause that says you can give an explanation and another that prevents you from doing so.

Consider mutual confidentiality and non-disparagement

Confidentiality is often presented as an employee obligation, but the employer’s conduct matters too. Where appropriate, ask whether the obligation can be mutual. This may mean the employer agrees not to disclose the terms or circumstances of the settlement, subject to sensible internal and legal exceptions.

The same applies to non-disparagement wording. A term preventing you from making derogatory comments can be commercially reasonable if it is balanced. It may be fair to seek an equivalent undertaking from the employer, its senior staff or named individuals, particularly where reputational concerns have been part of the discussions.

There are limits to what an employer can realistically promise. It cannot always control every former colleague, and it may need to share information internally with HR, finance, legal advisers or managers who have a legitimate need to know. The aim is not to make the clause impossible to operate. It is to ensure it does not place all the risk on one side.

Link the restriction to the settlement package

A settlement agreement involves an exchange. You agree not to pursue specified employment claims, and the employer provides compensation and other agreed terms. Wider restrictions can be part of that exchange, but they should be considered when assessing the package as a whole.

If the employer wants an especially broad confidentiality commitment, that may support a request for improved compensation or more carefully limited wording. Equally, if the financial offer is modest, a restrictive clause may be harder to accept without amendment. There is no fixed formula, but the scope and duration of your obligations should be proportionate to what you receive.

Do not focus on the payment figure alone. Consider the agreed reference, notice pay, holiday pay, bonus or commission, treatment of shares or benefits, legal-fee contribution and tax wording. A strong settlement package should give you both financial security and a clean, credible route into your next role.

Raise changes in a clear, measured way

You do not need to argue every point personally. Your independent legal adviser can identify concerns, explain the legal position and propose amendments to the employer or its solicitors. In many cases, a targeted request is more effective than a long objection to the entire agreement.

It helps to explain the practical reason for each proposed change. For example, you may need to consult a therapist, comply with professional reporting duties, discuss the matter with a spouse, or provide a truthful explanation to future employers. A reasonable request framed in this way is often easier for an employer to accept.

Keep a record of the versions exchanged and do not rely on informal assurances given by telephone. Check that agreed amendments have been incorporated into the final document before it is signed. A settlement agreement usually needs to identify the claims being waived and confirm that you have received independent legal advice for it to be legally valid. That advice should cover the effect of the confidentiality terms, not simply the signature process.

Get advice before the deadline

Employers may set a short deadline, particularly where a termination date is approaching. That does not mean you should sign without understanding the consequences. If the time allowed is unrealistic, it may be possible to request an extension. Most employers want a valid, enforceable agreement and have an interest in allowing you to obtain proper advice.

At Arcos Settlement Agreements, the focus is on clear, independent advice about what the wording means for you and what can sensibly be negotiated. A confidentiality clause should protect legitimate interests without stopping you obtaining support, meeting legal obligations or moving forward with confidence.

Before you sign, make sure the document says what both sides have actually agreed. A few carefully chosen amendments now can prevent uncertainty at the point you most need clarity: when you are ready to leave this employment behind and begin the next chapter.