Settlement agreement template for repeat use

An employer that settles several exits a year does not need a fresh agreement each time; it needs a template drafted for its own contracts, policies and practices, with the constant terms fixed and the variables (the names, the dates, the sums, the reference, the covenants) in a schedule the employer completes, and with the clauses the law requires in every version. The template has to be kept current, because the tax rules, the Acas Code and the 2025 Act change what it must say, and it has to come with guidance on the exits that it does not suit. I draft the template for the employer for a fixed fee of £995, delivered in five working days.

Who this is for

Employers in England and Wales with an HR function or an owner who handles exits, who settle several departures a year and want a document they can complete themselves with the confidence that it works.

What matters in a settlement agreement template

Why a template rather than a fresh agreement each time

A fresh agreement for every exit costs a fixed fee each time and produces documents that differ in ways nobody intended; a template drafted once for the employer's contracts (its notice periods, bonus plans, covenants and policies), its practice (who signs, who gives references, how payments are made) and its sector (any regulatory references or referrals) gives the employer a document it can complete in an hour for the ordinary exit, with the same terms every time, and lets the fixed-fee drafting be reserved for the exits that need it; the template is bespoke to the employer rather than a generic form, because a generic form does not know what the employer's contracts say.

The structure that separates the constant from the variable

The template has a body containing the terms that do not change (the waiver and the statutory conditions, the tax treatment and indemnity, confidentiality and its carve-outs, non-derogatory terms, the return of property, warranties, the adviser's certificate, the governing law) and a schedule containing the variables (the employee, the termination date, the notice position, the payments and their dates, the reference, the announcement, the covenants reaffirmed, the adviser's fee contribution, any special terms), so that the employer completes the schedule and leaves the body alone; a template in which the employer edits the body is a template that stops working.

The schedule of terms and the variables the employer completes

The schedule should be designed so that each variable has a clear place and a note on how to complete it: the termination date and whether notice is worked, on garden leave or paid in lieu (which decides the post-employment notice pay under section 402B of the Income Tax (Earnings and Pensions) Act 2003); the payments, each allocated to its category (earnings, or compensation within the thirty thousand pound exemption under section 403); the reference attached; the covenants reaffirmed by reference to the contract's clause numbers; the claims waived, with a checklist of the claims to list for the employee's circumstances; and the adviser's details for the certificate; the template comes with completion notes so that whoever uses it next year can.

The clauses that must be in every version

Every version must contain the statutory conditions under section 203 of the Employment Rights Act 1996 and section 147 of the Equality Act 2010 (writing, the particular complaints, the adviser identified, the advice and the insurance confirmed, the conditions stated), the carve-outs the law requires from confidentiality (protected disclosures, which section 43J of the Employment Rights Act 1996 says no agreement can prevent, reports to regulators and the police, advisers and family, the Employment Rights Act 2025 provisions on non-disclosure terms concerning harassment and discrimination, commenced on a timetable the regulations set), the tax indemnity, the employee's warranties, and the adviser's certificate in a form advisers accept; the template fixes each so that the employer cannot remove them by mistake.

Keeping the template current as the law changes

The template should be dated, reviewed annually and when the law changes (the Employment Rights Act 2025 provisions on unfair dismissal, the initial period of employment and non-disclosure terms will each require a revision as they come into force on the timetable the regulations set; the thirty thousand pound exemption, the Acas Code and the tax rules on legal fees under section 413A of the Income Tax (Earnings and Pensions) Act 2003 change less often but do change), and the employer should use the current version only; the template includes a version control note and a list of the provisions most likely to change, so that the employer knows what to check before each use.

The limits of a template and the exits that need a fresh draft

The template suits the ordinary exit: a redundancy with an enhancement, a performance exit, a mutual parting; it does not suit a director's departure (board resignation, loss of office payments, shares), a founder with equity, an exit after a discrimination or whistleblowing allegation (where the waiver and the confidentiality need specific drafting), a long-term sickness exit (where section 406 of the Income Tax (Earnings and Pensions) Act 2003 and insurance benefits need handling), or a settlement of an issued tribunal claim; the template comes with a note listing the exits that need a fresh draft, because a template used for the wrong exit is worse than no template.

What it costs

Settlement agreement, £795. Drafted for your situation, with a note on how to have the conversation. Three working days.

Settlement agreement including reasonable negotiation with the employee's adviser, £995. The agreement in three working days. The negotiation then runs until the agreement is signed or it becomes clear it will not settle. Reasonable negotiation means what, in my experience, amounts to the standard back and forth on a settlement agreement. If the employee or their adviser is being unreasonable, for example by conducting themselves unprofessionally or requiring a substantial rewrite that needs material further legal advice to you, I will flag it and we will discuss how best to proceed, which may involve further fixed-fee work. That would be unusual.

Buying online forms the engagement on payment. The scope is what the settlement agreements for employers page describes, you accept the Terms of Service at checkout, and I email you within four working hours to get started. If you would rather ask something first, email me.

What you get

• A bespoke settlement agreement drafted for the exit you are dealing with
• Proper waiver of the relevant statutory claims, so the agreement does what you are paying for
• Advice on the tax treatment, including the £30,000 exemption and what falls outside it
• Confidentiality, non-derogatory statements and an agreed reference
• Reaffirmation or replacement of restrictive covenants, which is often the real value
• A short note on how to open the conversation and keep it without prejudice or protected
• One round of amendments after the employee's adviser responds

What is not included

• Advising the employee, which their own adviser must do independently for the agreement to be valid
• Tribunal representation if the matter does not settle
• Payroll processing of the settlement sums
• Handling the settlement payment, since I do not hold client money

Questions I am often asked

How many exits a year make a template worthwhile?

Two or three, since the template costs little more than one fresh agreement and the fixed-fee drafting is then reserved for the exits that need it. Fewer than that, and a fresh agreement each time may be simpler.

Can our HR manager complete the template without a solicitor?

For the ordinary exit, yes, using the schedule and the completion notes and leaving the body alone. The note lists the exits that need a fresh draft, and the template should be checked when the law changes.

Will the template need updating for the 2025 Act?

It will, as the unfair dismissal, initial period and non-disclosure provisions come into force. The template is dated, version-controlled and lists the provisions most likely to change so that the employer knows what to check.

Related guidance and services

• Settlement agreements for employers, £795, the service this page describes
• Employment contracts and handbooks, £595
• Shareholders agreement, £995
• Settlement agreement for a small business making its first settlement
• Settlement agreement including reasonable negotiation: what that covers

This page is general guidance for businesses in England and Wales, not advice on your own circumstances. Last reviewed: October 2026. Email geoffrey@caesar.co.uk.