Agreed Reference Settlement Agreement Template for England and Wales

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Key Requirements PROMPT example:

Agreed Reference Settlement Agreement

"I need an Agreed Reference Settlement Agreement for a senior software developer who is leaving our fintech company amicably in March 2025, where we want to provide a detailed technical reference but need to ensure compliance with FCA regulations."

Document background
The Agreed 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 about the content and format of employment references, protecting both the employer's interests and the employee's future career prospects. It typically arises during settlement negotiations or as part of a wider settlement agreement, ensuring consistency in how the employer responds to reference requests and minimizing the risk of future disputes or claims.
Suggested Sections

1. Parties: Identification of employer and employee with full details

2. Background: Context of employment and circumstances leading to agreement

3. Definitions: Key terms used throughout the agreement

4. Reference Content: Agreed wording of the reference

5. Duration: Period for which the agreement remains valid

6. Confidentiality: Terms regarding confidentiality of the agreement

Optional Sections

1. Response to Verbal Enquiries: Used when parties want to specify handling of verbal reference requests

2. Regulatory Requirements: Required for regulated industries or professionals

3. Social Media Policy: Used when parties want to address social media communications

Suggested Schedules

1. Schedule 1 - Agreed Reference Template: Standard format reference letter agreed between parties

2. Schedule 2 - List of Approved Recipients: Optional list of pre-approved reference recipients

3. Appendix A - Employment History: Details of positions held and dates

Authors

Alex Denne

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

Relevant Industries
Relevant Teams
Relevant Roles
Industries

Employment Rights Act 1996: Primary legislation governing employment rights, particularly relevant for provisions regarding references and statements about employment

Equality Act 2010: Ensures the agreement doesn't discriminate unlawfully and provides protection against victimization

Data Protection Act 2018 and UK GDPR: Governs the handling and processing of personal information in references

Defamation Act 2013: Covers statements made in references, including truth as a defense and honest opinion provisions

Common Law: Duty of Care: Based on case law including Springett v Defoe (1992), establishing employer's duty to provide accurate references and take reasonable care in their preparation

Contract Law Fundamentals: Covers essential elements including consideration, intention to create legal relations, and capacity to contract

ACAS Code of Practice: Provides best practice guidelines for providing references

Financial Services and Markets Act 2000: Relevant when the reference relates to regulated activities or individuals in the financial sector

Human Rights Act 1998: Particularly Article 8 (right to privacy) and Article 10 (freedom of expression) considerations

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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