Absolutely—settlement agreements often cover much more than just financial compensation, and many non-financial terms can be negotiated to create a more beneficial arrangement for both parties. While financial compensation is typically the central focus, non-monetary elements like a positive reference, confidentiality provisions, and post-employment restrictions can be just as important to protecting your future career prospects and personal interests.

Here’s a closer look at what non-financial terms you might consider negotiating and how they can impact your settlement.

1. Agreed or Positive Reference

One of the most valuable non-financial elements you can negotiate in a settlement agreement is an agreed or positive reference. If you’re leaving under contentious circumstances or simply want to ensure your professional reputation is protected, an agreed reference can provide assurance about how your former employer will describe your role and performance to future employers.

Employers may agree to:

• Provide a neutral reference that only includes your job title, employment dates, and a general description of your role.
• Offer a pre-written reference included in the settlement agreement, ensuring consistency in what is shared with prospective employers.
• Refrain from making negative comments or adding subjective evaluations that might harm your future employment prospects.

A positive or agreed reference can be especially valuable if your departure could raise questions for future employers, as it helps maintain a strong reputation within your industry.

2. Confidentiality and Non-Disparagement Clauses

Confidentiality clauses are common in settlement agreements and are typically negotiated to prevent both parties from discussing the terms or circumstances surrounding the departure. Confidentiality benefits both you and your employer by protecting sensitive information and reputations.

Negotiated terms can include:

• Confidentiality of Terms: Both parties agree not to disclose details of the settlement agreement, including the financial amount and specific terms.
• Non-Disparagement Clause: This prevents either party from making negative or damaging comments about the other. For employees, this is helpful in ensuring that your employer will not make remarks that could impact your future career.
• Exceptions to Confidentiality: Confidentiality clauses can include exceptions, allowing you to discuss the terms with specific individuals, such as family members, a solicitor, or a financial advisor.

3. Outplacement Support

Outplacement support is a beneficial term to negotiate, especially if you anticipate challenges in finding new employment. Outplacement services, funded by your employer, can assist with job searching, career coaching, resume building, interview preparation, and even retraining in some cases. This support can be particularly helpful in situations where your role has been made redundant or if you’re moving into a new field.

Examples of outplacement support include:

• Career Counseling or Coaching: Guidance to help you transition smoothly and plan your next career steps.
• CV and Cover Letter Assistance: Professional help in creating effective job application materials.
• Access to Job Search Resources: Some employers may provide access to exclusive job listings, career workshops, or networking opportunities.

By including outplacement support, you can benefit from a smoother transition into your next role and improve your chances of securing a new position more quickly.

4. Non-Compete and Non-Solicitation Clauses

Employers may include restrictive covenants like non-compete and non-solicitation clauses in a settlement agreement, especially if your role involves proprietary knowledge, client relationships, or trade secrets. These clauses can restrict you from working for a competitor or soliciting clients or colleagues from your former employer for a certain period after you leave.

While these restrictions are common, they can be negotiated:

• Narrowing the Scope: You may negotiate the terms to limit the restriction to specific roles, geographic areas, or types of clients.
• Shortening the Duration: Reducing the length of time you’re restricted can make it easier to resume your career without unnecessary limitations.
• Defining Competitors: Clearly defining which companies are considered competitors can prevent misunderstandings and keep the restriction fair and specific.

If your employer includes restrictive covenants, consult with a solicitor to negotiate terms that protect both your rights and their interests, without unduly limiting your career options.

5. Retention of Benefits

If you have certain benefits through your employment, such as health insurance, pension contributions, or access to a company vehicle, you may be able to negotiate their retention for a period after your departure. Retention of benefits can provide stability as you transition out of your role and may be especially important if you rely on these benefits for financial security or personal health needs.

Examples include:

• Extended Health Coverage: Some employers will agree to cover your health insurance for a few months after you leave, especially if you’ve relied on the coverage for ongoing treatments.
• Pension Contributions: You may be able to negotiate a final contribution to your pension scheme as part of the settlement.
• Access to Other Perks: If you had a company phone, car, or other work-related perks, discuss whether you can retain these temporarily or receive a financial equivalent.

6. Removal of Internal Records

If your departure follows disciplinary actions or performance issues, you may be concerned about how these records could impact your future employment opportunities. In some cases, employers are willing to remove or amend internal records that might otherwise paint a negative picture.

Negotiating the removal or amendment of records can include:

• Expunging Disciplinary Actions: Requesting that any formal warnings or disciplinary actions be removed from your employment record.
• Amending Performance Reviews: If there were contentious or disputed performance reviews, you may negotiate to have these removed or clarified to prevent future employers from viewing them negatively.
• Confirmation in Writing: Ensure that any agreed removal of records is documented within the settlement agreement for additional assurance.

7. Legal and Financial Advice Costs

As part of the settlement, employers are often willing to cover the costs of independent legal advice required to make the agreement legally binding. In some cases, you may also negotiate additional contributions if you need financial or tax advice to fully understand the implications of the settlement.

Typical terms may include:

• Contribution to Legal Fees: Employers usually offer a set amount to cover your solicitor’s fees, but you can request an increase if your case is complex.
• Tax and Financial Advice: If the settlement has significant financial implications, you may request a contribution to cover tax advice or financial planning services.

8. An Apology or Statement of Regret

While not always included, some employees find it meaningful to receive a formal apology or statement of regret from the employer. This may be particularly valuable in cases involving unfair treatment, discrimination, or workplace conflict. An apology can provide emotional closure and help preserve your professional reputation.

Apologies can be structured as:

• Written Apologies: A written statement from the employer acknowledging the circumstances or expressing regret.
• Non-Admissions Clauses: Often, these statements are made without admission of liability but can still be useful for closure.

Final Thoughts

Negotiating a settlement agreement offers much more flexibility than you might initially realize, as there are numerous non-financial terms that can help protect your interests, support your transition, and ensure a positive impact on your future career.

Discussing these options with a solicitor is essential, as they can guide you in identifying which non-monetary terms are most beneficial in your specific circumstances and help negotiate a comprehensive settlement agreement that supports both your financial and professional needs.