Cabinet Office guidance on settlement agreements in the civil service

The Cabinet Office has published Cabinet Office Guidance on Settlement Agreements, Special Severance Payments and Confidentiality Clauses on Termination of Employment.

 

The Cabinet Office has published Cabinet Office Guidance on Settlement Agreements, Special Severance Payments and Confidentiality Clauses on Termination of Employment. The Guidance will apply from 1 February 2015wherepublic money is being paid as part of a settlement agreement or COT3 to terminate employment involvingcivil servants or non-civil servants employed by government departments or arm’s length bodiesand includes advice on the associated use of confidentiality clauses and special severance payments. The Guidance stipulates when a settlement agreement should not be used, (e.g. to avoid taking disciplinary action, cover up individual or organisational failure, etc.). It highlights that special severance payments outside of statutory or contractual entitlements will be rare. In addition, confidentiality clauses should not be used in settlement agreements as a matter of course, but if they are to be used then prior approval must be sought and Annex A provides standard wording. 

Content Note

The aim is to provide summary information and comment on the subject areas covered. In particular, where employment tribunal and appellate court cases are reported, the information does not set out full details of all the facts, the legal arguments presented by the parties and the judgments made in every aspect of the case. Click on the links provided to access full details. If no link is provided contact us for further information. Employment law is subject to constant change either by statute or by interpretation by the courts. While every care has been taken in compiling this information, SM&B cannot be held responsible for any errors or omissions. Specialist legal advice must be taken on any legal issues that may arise before embarking upon any formal course of action.

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