What Claims Are Waived When You Sign a Settlement Agreement?

The short answer

A settlement agreement usually prevents an employee or worker from bringing the employment claims specifically identified in it. The waiver often covers a long schedule of statutory, contractual and common-law claims, whether or not every claim appears likely on the facts.

The words “full and final settlement of all claims” are not, by themselves, a substitute for satisfying the statutory rules. Employment legislation generally requires the agreement to relate to particular complaints or proceedings. The wording and surrounding circumstances matter.

Claims commonly included

Depending on the individual and the reason for the agreement, a waiver may list claims relating to:

• Unfair dismissal and constructive dismissal;
• Wrongful dismissal and notice pay;
• Redundancy pay and redundancy procedure;
• Discrimination, harassment and victimisation under the Equality Act 2010;
• Whistleblowing detriment and automatically unfair dismissal;
• Unlawful deductions from wages;
• Holiday pay and working-time rights;
• Breach of contract;
• Flexible-working rights;
• Family leave, pregnancy and maternity rights;
• Part-time and fixed-term work;
• Trade-union and health-and-safety rights;
• Data protection and misuse of private information; and
• Personal injury, subject to any agreed exception.

This list is illustrative. A properly drafted agreement should be tailored to the person’s status and circumstances rather than inserting legislation indiscriminately.

Does the agreement waive unknown claims?

Many drafts attempt to cover claims the employee does not know about at signing. Whether a future or unknown claim has been validly settled depends on the statutory wording, the identification of the claim and the facts. Recent appellate authority confirms that future claims can in principle be settled where the statutory requirements are met and the waiver is sufficiently clear, but broad general words should not be treated as automatically effective in every case.

Your adviser should explain the breadth of the proposed waiver and negotiate appropriate exclusions where needed.

Claims and rights commonly preserved

Agreements often preserve:

• The right to enforce the settlement agreement itself;
• Accrued pension rights;
• Latent personal-injury claims of which the employee is not and could not reasonably be aware at signing;
• Rights expressly stated to continue, such as payment under a share plan; and
• Disclosures and reports that cannot lawfully be prohibited.

The precise wording is crucial. For example, a personal-injury exception may not protect a known injury or a discrimination claim involving injury to feelings. Pension rights may be preserved while separate claims about pension loss are waived.

Whistleblowing and reporting wrongdoing

An agreement cannot validly prevent a protected disclosure under whistleblowing legislation. Confidentiality clauses must not stop lawful reporting of crime, cooperation with police or regulators, or other legally protected disclosures. Equal-pay discussion protections and specific protections applying in higher education may also be relevant.

From 6 April 2026, disclosures of sexual harassment can fall within the statutory whistleblowing framework where the legal conditions for a qualifying disclosure are met. The individual facts still matter.

What about confidentiality?

Confidentiality is an obligation, not a waiver of claims. A clause may restrict disclosure of the payment, terms or circumstances, but should include lawful exceptions for advisers, close family on a confidential basis, HMRC, medical professionals, regulators, protected disclosures and crime reporting as appropriate.

A non-derogatory statement clause may also limit critical comments. Consider whether it is mutual and how it interacts with references, evidence and legal duties.

Can claims arise after signing?

They can. An employer might breach the agreement by failing to pay or provide the agreed reference. New conduct after signature may create a fresh claim that was not within the settlement. The agreement may also contain continuing employee warranties or obligations.

This is why the waiver period, termination date, reaffirmation requirements and express exclusions must be checked. Some agreements signed before employment ends require a second certificate or reaffirmation after termination.

Questions to ask your solicitor

• Which realistic claims am I giving up?
• Are future and unknown claims included?
• Which rights survive?
• Is any known personal injury or pension issue protected?
• Could a bonus, share or data claim be lost?
• Does the confidentiality wording contain proper legal carve-outs?
• Must I sign a reaffirmation later?

Frequently asked questions

Can I bring an unfair-dismissal claim after signing?

Usually not if the agreement validly settles that claim. You may still enforce the agreement if the employer breaches it.

Can I report a crime or whistleblow?

An agreement cannot lawfully prevent protected disclosures or reporting a crime. Obtain advice on the particular information and route.

Are personal-injury claims always excluded?

No. Check the exact clause. Known claims are often waived, while genuinely latent claims may be carved out.

Why is the claims schedule so long?

Employers seek certainty. Length does not remove the need for the agreement to identify the relevant claims properly or for the adviser to explain its effect.

Disclaimer

This article is provided for general information only and does not constitute legal or tax advice or create a solicitor-client relationship. Employment law and taxation is fact-specific and may change. Obtain advice on the individual facts before acting. The law referred to is the law of England and Wales and is stated as at 26 August 2026.