Settlement agreement guidance and templates

Settlement agreements guidance and templates. Free to download and use.

A settlement agreement can be used by both sides in a dispute to resolve a problem or end employment. You should also follow the Acas Code of Practice on settlement agreements.

If you need any of these documents in a different format, or you cannot download them, email digital@acas.org.uk

Important: From 1 October 2025, victims of crime in England and Wales have extra rights related to non-disclosure agreements and sharing information about a crime. This includes confidentiality clauses in settlement agreements. We're in the process of updating our settlement agreements advice.

Guidance

Settlement agreements guidance (PDF, 511KB)

Settlement agreements guidance (Word version, 243KB)

Settlement agreement template

Using the settlement agreement template

Settlement agreement template

Letters to start settlement discussions

Template letters to initiate settlement discussions under s111A of the Employment Rights Act 1996.

When there's been a disciplinary or performance procedure

Letter to initiate settlement discussions when there's been a disciplinary or performance procedure (Word version, 16KB)

Letter to initiate settlement discussions when there's been a disciplinary or performance procedure (OpenDocument Text format, 8KB)

When there's been no disciplinary or performance procedure

Letter to initiate settlement discussions when there's been no disciplinary or performance procedure (Word version, 18KB)

Letter to initiate settlement discussions when there's been no disciplinary or performance procedure (Open Document Text format, 9KB)