When parties to a workplace dispute agree on a settlement, one typical term required by employers relates to confidentiality. Such clauses mandate that the employee refrain from telling third parties details of the deal that has been reached (with normal exceptions made for immediate family and professional advisers).
The majority of employment disputes are resolved long before they ever reach a court room. Usually, the former employee will agree to accept a sum of money from their previous employer in exchange for executing a release agreement. While the substance of release agreements can vary, they generally share two similarities:
No further liability: The individual agrees that upon receipt of an agreed payment, he/she shall have no further right to seek additional compensation as a result of their employment, or the termination thereof; and
Confidentiality: The individual agrees to keep the terms of settlement confidential.
