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Neutral Reference Settlement Agreement for the United Kingdom

Neutral Reference Settlement Agreement Template for England and Wales

A Neutral Reference Settlement Agreement is a legally binding document under English and Welsh law that establishes the terms and conditions under which an employer will provide references for a former employee. The agreement typically outlines the specific wording to be used in future references, ensuring consistency and protecting both parties' interests. It often forms part of a wider settlement arrangement and includes provisions for confidentiality, non-disparagement, and specific procedures for handling reference requests.

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Neutral Reference Settlement Agreement

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What is a Neutral Reference Settlement Agreement?

The Neutral Reference Settlement Agreement is commonly used when an employment relationship has ended and both parties wish to establish clear parameters for future references. This document, governed by English and Welsh law, provides certainty and protection for both employer and employee by setting out exactly what information will be shared with potential future employers. It typically includes the precise wording of the reference, confidentiality obligations, and procedures for handling reference requests. The agreement is particularly valuable in situations where there has been a dispute or where the employment has ended through mutual agreement.

What sections should be included in a Neutral Reference Settlement Agreement?

1. Parties: Identification of parties entering into the agreement, including full legal names and addresses

2. Background: Context of the agreement, including brief employment history and reason for settlement

3. Definitions: Key terms used throughout the agreement

4. Reference Terms: Specific wording of the agreed reference and conditions for its provision

5. Confidentiality: Terms regarding confidentiality of the agreement and its contents

6. Non-Disparagement: Mutual obligations regarding future statements about each other

7. Governing Law: Confirmation that English and Welsh law governs the agreement

What sections are optional to include in a Neutral Reference Settlement Agreement?

1. Duration: Period for which the reference agreement remains valid

2. Alternative Contacts: Named individuals authorized to provide the reference

3. Breach Consequences: Specific remedies in case of breach

What schedules should be included in a Neutral Reference Settlement Agreement?

1. Schedule 1 - Agreed Reference Template: The exact wording of the agreed reference

2. Schedule 2 - Reference Request Protocol: Procedure for handling reference requests

3. Schedule 3 - Authorized Personnel: List of individuals authorized to provide the reference

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Cost

Free to use
Relevant legal definitions












Clauses














Industries

Employment Rights Act 1996: Primary legislation governing employment rights, particularly relevant for references and settlement of employment disputes. Section 203 is crucial for valid waiver of statutory claims in settlement agreements.

Equality Act 2010: Ensures the agreement complies with anti-discrimination laws and doesn't perpetuate any form of discrimination in the reference or settlement terms.

Data Protection Act 2018 and UK GDPR: Regulates the handling and processing of personal information in references, ensuring compliance with data protection principles.

Defamation Law: Common law principles protecting against false statements that could harm reputation, relevant for content of references.

Negligent Misstatement: Common law doctrine requiring accuracy and reasonable care in providing references to avoid liability.

Duty of Care: Common law principle establishing the obligation to take reasonable care when providing references.

Contract Law Fundamentals: Basic principles including consideration, intention to create legal relations, and capacity to contract, essential for valid settlement agreements.

ACAS Guidelines: Advisory, Conciliation and Arbitration Service guidelines on references and settlement agreements, providing best practice framework.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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