The article takes a look at settlement agreements (also known as separation agreements), which are legally binding contractual documents which set out the employer’s and the employee’s agreed terms of the termination of the employee’s employment. In particular, this article also examines the recent English case of Duchy Farm Kennels v Steels, [2020] EWHC 1208 (QB), in which the Court considered the effect of the breach of the confidentiality clause in a settlement agreement.
The case helps to provide key takeaways for employers when drafting confidentiality clauses, which should include: simple and clear terms, compliance with laws, express stipulation of confidentiality as a condition, and agreed remedies for breach.
Authors: Andrea Randall, Partner, Nick Dealy, Partner, and Kritika Sethia, Legal Analyst, Gall