Model Settlement Agreement (ACAS template)
This template is a Model Settlement Agreement designed for employers and employees to formally settle claims arising from employment or its termination. It outlines terms for termination, financial settlements, confidentiality, and the waiver of specific legal claims. The document ensures compliance with relevant UK legislation and includes options for different jurisdictions within the UK.
Introduction
Read the background and how-to instructions for this agreement on the ACAS website: https://www.acas.org.uk/settlement-agreement-template
Only the formatting in this template has been amended from ACAS -- the ACAS document is formatted within various tables. This document is formatted with just text and arranged using decimal/numberic outline (e.g. 1.1) instead of the original which uses alphanumeric outline (e.g. 1.a.).
Model Settlement Agreement
SETTLEMENT AGREEMENT
Dated [enter date DD/MM/YYYY]
(Subject to Contract)
[Insert name of Employer]
-And-
[Insert name of Employee]
THIS SETTLEMENT AGREEMENT (the ‘Agreement’) is dated
[enter date DD/MM/YYYY].
This Agreement is made between [insert Employer name] (‘the Employer’) and [insert Employee name] (‘the Employee’).
1: Background
The Employee has been employed by the employer as [enter job title] since [enter start date].
The Employer and Employee have agreed to settle the Particular Claims on the terms set out in this Agreement.
The Employer enters into this Agreement without any admission of liability.
2: Definitions and Interpretations
In this agreement:
‘Claims’ means any claim, claims or causes of action that the Employee has or may have against the Employer.
‘Particular Claims’ are those Claims which the Employee and Employer intend to be settled by this Agreement, arising out of the Employee’s employment or the termination of employment, as set out in Annex A [if the Agreement is being used in Scotland the following additional words should be inserted at the end of this clause: ‘as set out in Annex A which is hereby incorporated into this agreement’].
‘Termination Date’ means the date on which the employment has ended or will end, as set out in Clause 3.1.
References to the singular in this Agreement shall include references to the plural and vice versa and words in the masculine include the feminine and vice versa.
The headings in this Agreement are for ease of reference and shall not affect interpretation.
3: Termination Date and Notice
The Employee’s employment with the Employer will terminate on
[enter date DD/MM/YYYY] (‘the Termination Date’). The Employer and Employee will continue to be bound by the terms and conditions of employment until the Termination Date.
[Provided that the Employee continues to comply with the terms and conditions of their employment, the Employer will pay the Employee’s
usual wages/salary [and bonus/commission] (less tax and National Insurance contributions) up to and including the Termination Date. [Along with the final wages/salary/bonus/commission payment, the Employer will also pay a sum in respect of [insert number] days accrued but untaken holidays (less tax and National Insurance contributions).]]
[OR]
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Scotland note
This version is drafted for Scotland. Scots law differs from England & Wales on execution and on some employment procedure. Tell GitLaw where the parties are and it adjusts the draft.
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