For HR, Settlement Agreements are a staple part of the employment process. However, when we act of individuals in these matters, we frequently see poorly drafted agreements which are clearly produced from an old template. At best, these can miss some of the key additional protections that the business may want as a result of that employee exiting the company. But, at worst, they may not be enforceable at all.
As with all covenants that you look to enforce after termination, your role as HR is to ensure that the agreement they will be signing up to is fit for purpose. In addition, you can also use this as an opportunity to introduce or gold-plate some business protection clauses. The list of clauses is quite extensive but can include restrictive covenants, confidential information, ongoing assistance clauses and protection from slanderous comments.
We will also ensure that the agreement continues to be effective in the event that the employee is not leaving immediately. Ongoing services presents multiple challenges for the agreement and its enforceability. We will ensure that you do not fall into this error.