Termination Details - The agreement usually confirms a leaving date and reason.
Settlement Figure - The agreement is a contract in which the employee agrees not to pursue their potential legal claims arising from their employment. In order to be binding, and indeed of any benefit to the employee, there is normally an agreed payment to them.
The ‘Specified Claims’ - Confirmation of the specific complaints which an employee has against a business.
The Tax Indemnity - Parties in the agreement confirm that they understand the first £30,000 of a compensatory sum can usually be paid without tax deduction of tax (although HMRC will confirm this).
Employee Obligations - The things that the employer wants from the employee to ensure a smooth exit - such as the return of company property, or a period of garden leave.
Legal Advice - The employee will usually be asked to confirm that they have taken independent legal advice on the terms and effect of the agreement.
Confidentiality - Settlement Agreements are confidential and both parties will agree not to discuss its contents or the circumstances leading to it.