Getting references from employers in settlement agreements
Some employers will only confirm dates of employment and duties, whereas others are willing to comment favourably on an employee. What is agreed will depend on the employer’s usual practice and the circumstances surrounding your departure.
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Can I get a reference letter with a settlement agreement?
Yes, an agreed reference commonly forms part of the settlement agreement, but this is one of the things that’s often forgotten.
There is no obligation on any employer to provide a reference and it is one of the advantages of settling a case that a reference can be agreed as part of the agreement.
So, if your settlement agreement doesn’t have a specific clause dealing with references, then ask for one!
A good reference clause will say something like “A reference will be provided upon written request in the form annexed to this agreement at Annex A”.
Then there will be an agreed reference attached to the back of the settlement agreement itself, headed “Annex A.”
Our settlement agreement templates/examples show in practice how references are attached at the end.
See also our page on company benefits for more non-financial resources that can be negotiated with a settlement agreement.
How can I ensure that only the agreed reference is provided?
To make sure that only the agreed reference is provided, you can ask for the clause to say that requests for a telephone reference or a questionnaire will be refused and that any prospective employer will be told that only the written reference will be provided.
This guards against an employer giving a bad reference on the phone or in a questionnaire.
Some settlement agreements will just state that a ‘standard reference’ will be provided upon request. This implies a very simple reference with just the job title and dates of employment.
This is great because it’s not a can of worms where your employer could say something negative in the reference.
So, if a prospective employer contacts them and asks for more information, they can say that they only provide standard references.
Top Tips
Alex Monaco
Don’t ask for a reference until the last minute
Just job title and dates of employment are fine
References come as standard with any settlement agreement
Next Steps
If you want to get a rough idea of the value of your case, find out by using our Settlement Agreements Calculator.
Also think about getting some legal representation. Monaco Solicitors’ specialist employment lawyers have years of experience representing employees like you.
Have a look at Monaco Solicitors’ reviews to see how we helped others in your situation on their journey.
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