If you’re leaving your job under a Settlement Agreement, one of your biggest concerns may be what your future employer will be told.

For many employees, securing an agreed employment reference is just as important as negotiating the financial settlement.

The good news is that, in many cases, the wording of an employment reference can be agreed as part of a Settlement Agreement. This provides certainty for both you and your employer and removes much of the uncertainty that can arise when applying for new roles.

Will my employer have to provide a reference?

Not necessarily.

In most situations, employers are not legally required to provide a reference unless:

• There is a contractual obligation to do so.
• A regulatory requirement applies.
• They have specifically agreed to provide one.

However, many employers are willing to provide an agreed reference as part of a Settlement Agreement.

This can benefit both parties by avoiding future disagreements about what will be said to prospective employers.

What is an agreed reference?

An agreed reference is a reference whose wording has been negotiated and included within, or attached to, the Settlement Agreement.

This means that both you and your employer know in advance what information will be provided if a future employer requests a reference.

An agreed reference often provides reassurance and certainty when applying for your next role.

What does an agreed reference usually include?

Every reference is different, but they commonly confirm:

• Your job title.
• Your dates of employment.
• A brief description of your role.
• Confirmation that your employment ended by agreement.
• A factual summary of your duties.

In some cases, employers may also agree to include positive comments about your performance, professionalism or contribution to the business.

Whether this is appropriate will depend on the circumstances surrounding your departure.

Can I negotiate the wording?

Often, yes.

The wording of a reference is frequently negotiated alongside the financial terms of the Settlement Agreement.

Depending on your circumstances, negotiations may focus on:

• The information included.
• The wording used to describe your departure.
• Positive comments regarding your work.
• Confirmation that there are no ongoing disciplinary issues.
• The format of the reference.
• Who within the business will provide it.

A carefully drafted reference can make a significant difference when seeking new employment.

What if I leave because of a dispute?

Even where your employment has ended following a workplace dispute, grievance or disciplinary process, it may still be possible to agree a neutral or positive reference.

Many employers recognise that agreeing a reference helps both parties move on and reduces the risk of future disagreement.

If protecting your professional reputation is important, this should be discussed as part of the Settlement Agreement negotiations.

Can my employer say something different later?

Where a Settlement Agreement includes an agreed reference, employers will usually be expected to provide that agreed wording when responding to future reference requests.

However, every agreement is different.

Your solicitor will explain:

• Whether the wording is legally binding.
• Who is authorised to provide the reference.
• Whether any additional information may be disclosed.
• Whether the drafting provides sufficient protection.

If necessary, amendments can often be negotiated before the Settlement Agreement is signed.

How Pepperells can help

Our specialist Employment Solicitors regularly negotiate employment references as part of Settlement Agreements.

We’ll:

• Review the proposed reference.
• Advise whether the wording adequately protects your interests.
• Suggest improvements where appropriate.
• Negotiate amendments with your employer.
• Ensure the final wording reflects the agreement reached.

Our aim is to help you leave your employment with confidence and minimise any impact on your future career.

Looking to the future

For many employees, the next job is just around the corner.

Having an agreed employment reference can provide reassurance when applying for new roles and help remove uncertainty about what a former employer may say.

Before signing your Settlement Agreement, it is worth ensuring that your future reputation is protected just as carefully as your financial interests.

Speak to a Specialist Solicitor

If you’re concerned about what your employer may say after you leave, Pepperells can help.

Our specialist Employment Solicitors will review the proposed employment reference, negotiate improvements where appropriate and ensure your Settlement Agreement protects your future career.

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