Confidentiality settlement agreement

3 minuten mr. Mariëlle Ducaat kantoor 17 maart 2020 2026

In a settlement agreement, almost always a confidentiality clause is included. In such a clause, parties agree that they will not spill the beans about the (content of the) settlement agreement or about the circumstances that gave rise to the settlement agreement. An example of a confidentiality clause as it often appears in the settlement agreement is the following clause:

Confidentiality:

The employer and the employee will observe absolute confidentiality towards third parties, with the exception of legal/fiscal advisors, regarding the content of this agreement. If the UWV (employment agency) requests information, parties will only refer to the content of the present settlement agreement.

The purpose and importance of a confidentiality clause in the settlement agreement is that both the employer and the employee must observe absolute confidentiality towards the outside world regarding the (content of) the settlement agreement. So no communication about it with colleagues, customers, managers etc. Only persons who are involved with the employer or employee from their profession and in that capacity (must) have knowledge of the (content of the) settlement agreement do not fall under the operation of this confidentiality clause. Employees and employers can therefore inform their legal and possibly fiscal advisors with peace of mind about the (content of the) settlement agreement.

For the employer, a confidentiality clause is often important to prevent precedent effects. Many employers namely do not want individual arrangements made with a specific employee to become visible to other employees. After all, that could lead to undesirable precedent effects. Employees in turn usually do not want the arrangements they have made with the employer to be made public. Moreover, towards the UWV, it is not advisable for an employee to provide other information than the information included in the settlement agreement. In some cases, further information about the reason for terminating the employment relationship can namely lead to negative decisions (no benefit) from the UWV for the employee. A confidentiality clause in the settlement agreement prevents undesirable messaging towards the UWV. This increases the chance for the employee to qualify for a possible benefit.

If you have received a settlement agreement or wish to have a settlement agreement drafted for your employee, always ensure that a confidentiality clause is included in the settlement agreement. This is desirable for both parties.

mr. M.S. (Mariëlle) Ducaat

Jurist arbeids- en ontslagrecht

Mariëlle adviseert en procedeert namens zowel werkgever als werknemer bij arbeidsrecht gerelateerde onderwerpen. Hierbij kunt u denken aan ontslag (al dan niet middels een vaststellingsovereenkomst) maar ook disfunctioneren en ziekte. Mariëlle maakt zich graag hard voor uw belang. Bij vragen en/of opmerkingen kunt u haar bereiken via ducaat@wolderwijd-juristen.nl of 036 522 7007.

Confidentiality settlement agreement

3 minuten mr. Mariëlle Ducaat kantoor 17 maart 2020 2026