Key Takeaways
- A good reference in a UK settlement agreement must be true, accurate and fair, and should avoid language that is misleading or harmful to your future job prospects.
- You are entitled to request an agreed reference clause and negotiate for specific wording or the inclusion of achievements.
- If you see vague, negative or incomplete reference wording, it is appropriate to push back and seek changes before signing.
- Employers may offer only basic references, but you can pursue a more detailed version, especially in redundancy or after a dispute.
- Our solicitors regularly negotiate improved reference clauses and non-disparagement terms to protect your career.
- Settlement agreement advice is normally free for employees, as employers cover the legal fees.
- If an employer breaches an agreed reference, there are legal remedies and our solicitors can help enforce your rights.
- We are rated Excellent on Trustpilot, Google, and other platforms, with over 1,400 five-star reviews for our lawyers.
What a good reference should include in a UK settlement agreement — and when to push back
When reviewing your settlement agreement, understanding what a good reference should include and when to push back is vital. Independent legal advice is required for your agreement to be binding, and your employer almost always covers this cost, making the process free for you.
Wording around references is as important as the financial terms if you are concerned about reputation, redundancy, or previous disputes. Signing a settlement agreement usually prevents future claims, so our solicitors ensure any agreed reference is precise, fair, and protective of your career.
This article details what your reference clause should contain, the difference between basic and detailed references, when to object to certain wordings, and how to safeguard against negative or misleading comments after you leave. If you need fast, expert help, call 0800 054 1144 or book your advice online: book your settlement agreement advice online.
What a good reference should include in a UK settlement agreement — and when to push back
A well-drafted reference in your settlement agreement is more than a tick-box — it shapes your reputation and employability. While there is no legal right to a reference in the UK, employers often agree to provide one as part of a settlement. Our solicitors can negotiate the exact wording, ensuring it is accurate, fair, and agreed by all parties.
The reference usually outlines what your employer will say to prospective employers, ranging from a basic factual confirmation of dates and roles to a more comprehensive summary of your achievements. This wording is particularly crucial when your departure follows redundancy, a dispute, or a claim like discrimination or whistleblowing.
Since this reference forms a legally binding part of your contract, an employer who deviates from it can be held legally accountable. It is therefore essential to check the wording thoroughly and push for changes to anything that might harm your future prospects.
A professional leaving a finance firm by settlement agreement after redundancy negotiated a reference listing her projects, confirmed no disciplinary issues, and named redundancy as her reason for leaving. When a prospective employer requested a reference, she received exactly the agreed wording, supporting her into a new job without the awkwardness of explaining her exit.
What is a settlement agreement reference and why does it matter?
A settlement agreement reference is a specific clause dictating what your previous employer may say about you to future employers, specifying what is included and excluded. This brings peace of mind: you know how your employment will be described, and nothing damaging can be added.
In the UK, employers are not obliged to give a reference. Once included in your settlement agreement, however, it becomes legally binding. Many employers request references as part of recruitment. An ambiguous, incomplete, or unfair reference could harm your chances of landing your next job.
By securing this clause, you ensure your employer cannot deviate from the agreed text or hint at disputes or performance issues. Our solicitors can review and, where necessary, request improvements for fairness and clarity.
Always insist on reviewing the actual wording of your reference before signing. Avoid the phrase “reference to be provided on request” and instead have the full final wording attached to your agreement so there are no surprises for future employers.
The legal requirement for independent legal advice (s.203 ERA 1996) in settlement agreements
For a settlement agreement to be legally valid, section 203 of the Employment Rights Act 1996 requires that employees receive independent legal advice on what they are signing. This cannot be waived. The legal adviser must be a qualified solicitor, barrister, or certified adviser, who will explain all implications — including your reference clause.
Your employer is responsible for paying for this legal advice, so it’s free to you. Our solicitor will review every detail, negotiate where needed, and ensure you fully understand each clause, especially if the reference needs changing before you sign away statutory rights.
A client’s settlement agreement contained a reference clause stating only “will provide a reference upon request.” Thanks to our ILA service, our solicitors negotiated a comprehensive factual reference and a statement preventing negative implications. The employer paid our fee, and the client’s professional profile remained protected.
What must a settlement agreement reference include to be fair, accurate and not misleading?
A fair and adequate reference in a settlement agreement should:
- Explicitly include the agreed wording, ideally as a schedule to the agreement.
- Be factually accurate (correct dates, roles, no errors).
- Confirm the reference will have no negative or subjective comments.
- State that no further (verbal or written) information will be provided.
- Exclude references to disputes, grievances, or disciplinary matters that led to your exit.
- Guarantee consistency in any reference provided in the future.
Employers have a duty of care not to provide misleading or inaccurate references. An inaccurate or ambiguous reference could be a breach of contract or, in rare situations, amount to defamation. Always check for accuracy in all details, including your achievements and reasons for leaving.
Checklist: Ensure your reference clause
- Has correct job dates, roles, and key achievements
- Has clear terms that further information won’t be given
- Avoids mention of ongoing issues or investigations
- Clarifies whether it is a generic reference or addressed to a specific employer
Thoroughly check for indirect hints about poor performance or misconduct. For example, phrases like “left by mutual agreement” can imply problems unless fully explained.
Basic (factual) vs structured (detailed) references: what’s the difference?
References are broadly either:
- Basic (Factual): Confirms job title and dates. Omits performance details or context. Often used for contentious or redundancy exits.
- Structured (Detailed): Goes beyond the basics to include job responsibilities, achievements, and strengths. Adds value for senior staff or specialist sectors.
| Reference Type | What’s Included | Typical Wording | When Used |
|---|---|---|---|
| Basic (Factual) | Dates, job title, sometimes department | “Ms X was employed as Manager from Jan 2020 to Mar 2024” | After disputes or redundancy |
| Structured (Detailed) | Achievements, duties, summary of skills | Projects, skills, strengths, positive but factual notes | Senior or specialist positions |
A senior NHS nurse achieved a detailed reference listing projects and achievements via a negotiated settlement, which helped her secure her next post in a crowded market.
Agreed reference clauses: how and when to negotiate wording
You can negotiate any part of your settlement agreement before signing — and should, if the reference may affect your prospects. To negotiate effectively:
- Request the full text of the proposed reference.
- Check for factual errors or negative inferences.
- Suggest corrections or specific positive additions.
- Seek to have the final wording included as a schedule to the agreement.
- Ensure the arrangement covers verbal as well as written references.
Negotiations should start as soon as you have the draft agreement, particularly if you are moving to a regulated or competitive industry. Our solicitors guide you through proposed wording to ensure industry-appropriate and fair terms.
If your employer claims to provide only factual references, ask if a more positive or descriptive one can be agreed for you. With the right approach, many companies are willing to go further than their default template.
If you want expert support reviewing or negotiating your settlement agreement reference clause, call us on 0800 054 1144 or book your settlement agreement advice online for a same-day remote appointment — employer funded, so free to you.
Spotting reference red flags: when should you push back on reference wording?
Watch out for red flags such as:
- Vague references not clearly attached to the agreement.
- Wording that hints at poor performance or incomplete explanations.
- Promises like “in line with company policy”, which could change and jeopardise your position.
- Missing information about your successes or the context of your departure.
Your solicitor can help you demand the actual wording be attached in writing, either within the agreement or in an explicit schedule, to prevent future ambiguity or policy changes.
When an IT manager’s agreement referred only to “company policy,” our solicitor insisted on the exact wording being included, preventing later policy changes from undermining the reference.
Challenging vague, negative or incomplete references
Vague, negative or incomplete proposed references should be challenged at once — especially if there were performance disputes, PIPs, or a complicated exit. Do not settle for ambiguous statements or omissions.
Steps include:
- Flag all negative or ambiguous points for removal or change.
- Suggest positive details or draft a version for discussion.
- Remove any language implying fault unless agreed and substantiated.
- Let your solicitor handle negotiations with HR or the employer’s legal team.
- Insist that the agreed reference forms part of the final contract, as a schedule.
Never sign a settlement agreement with a reference clause that leaves the wording to “company policy” or “future request.” Final reference wording must be attached to the contract itself.
References after disputes, redundancy or whistleblowing: protecting your reputation
Employers facing a redundancy, whistleblowing issue, or dispute often revert to a basic factual reference. Even then, ensure the clause:
- Does not suggest fault or hint at underlying disputes.
- Excludes cryptic or coded language that might raise concerns.
- Bans inconsistency between formal and informal references.
Discrimination and whistleblowing cases are covered by the Equality Act 2010 and Public Interest Disclosure Act, so your employer should not victimise you with an adverse or coded reference.
A whistleblower left with only a basic reference on offer. Our solicitors negotiated for a neutral, positive statement and explicit mention that his exit was by mutual agreement — avoiding any negative reference to the protected disclosure.
Non-disparagement and confidentiality clauses: how your reputation is protected
Many settlement agreements contain non-disparagement and confidentiality clauses. Non-disparagement prevents both sides from making negative statements about the other, including via references to agencies or recruiters. Confidentiality clauses prohibit discussion of the reason for leaving or terms of settlement, securing your reputation.
Our solicitors will review to ensure these clauses are mutual, watertight, and do not leave loopholes allowing managers to share negative details under the guise of informal chats.
Have your solicitor insist that anyone who might be asked for a reference is covered by the agreement — not just HR or executive staff.
What happens if your employer gives a misleading or different reference?
If your employer strays from the agreed wording or provides misleading information, this is a contract breach. You may be able to seek:
- An injunction stopping further references.
- A retraction or correction.
- Compensation for financial loss or harm to your reputation.
Act quickly. Our solicitors generally start by writing to the employer insisting on rectification. If necessary, legal action can be taken in the county court, supported by the contract.
A financial analyst’s ex-employer gave a conflicting phone reference post-settlement. Our solicitors intervened: the reference was recalled and future references were required to be in writing according to the agreement.
Written, verbal and back-channel references: are they all covered?
Settlement agreements should cover all communications: written, verbal, and informal references. Your solicitor should insist the clause includes any statements by managers or colleagues, as off-the-record conversations or LinkedIn comments can still tarnish your reputation.
If you suspect an unauthorised back-channel reference, our solicitors can advise on options for evidence and next steps.
If the clause is unclear, request an explicit ban on additional comments and ensure the permitted reference wording is shared with new employers for consistency.
Enforcing your settlement agreement reference rights: remedies if breached
A breached reference clause is enforceable in law. Typical remedies include:
- Orders compelling the employer to provide the agreed reference.
- Damages for loss of opportunity if a negative or changed reference costs you a job.
- Stop orders (injunctions) against further damage.
Most cases can be resolved quickly through solicitors. If necessary, you can bring a county court claim with the agreement as strong contract evidence.
A sales executive was denied a job offer following an unauthorised verbal reference. Our solicitors stepped in, secured a corrected written reference, and her employer compensated for the lost job offer.
If you need early advice on negotiating your reference or help fighting a breach, call 0800 054 1144 or book your settlement agreement advice online. Our advice is free for employees — your employer pays, and our service is fully remote.
Step-by-step: how the settlement agreement signing process works (including remote same-day service)
Here’s how the process works, with our same-day, nationwide remote service:
- Receive your draft agreement from your employer.
- Contact our solicitors for a free initial discussion (legal costs are employer paid).
- Share all relevant documents, including the reference wording.
- Our solicitor reviews the agreement, flagging any issues or red flags.
- We negotiate with your employer to improve clauses, including the reference.
- We provide you with independent legal advice in writing.
- Our solicitor signs the certificate under s.203 of the Employment Rights Act 1996.
- You and your employer digitally sign the agreement.
- The employer pays our legal fees.
- You receive your fully binding, enforceable agreement.
We deliver this process remotely across England and Wales on the same day if you need rapid turnaround.
Never resign or accept a settlement deal before our solicitors have reviewed the reference wording and other important terms for you — otherwise you may lose important legal and career protections.
Why Choose Settlement Agreement Lawyers?
Our solicitors combine SRA-regulated expertise with unmatched experience in settlement agreement reference negotiation, drafting and enforcement. We routinely achieve upgraded reference wording, non-disparagement guarantees, and bespoke agreements tailored for senior, regulated, or high-profile clients.
- Remote, rapid legal advice across England and Wales.
- No cost to you: your employer pays our fees.
- Expertise in redundancy, discrimination, whistleblowing and unfair dismissal.
- Strong negotiators for robust references and mutual confidentiality.
- Post-settlement enforcement and ongoing support.
Read our client success stories for real examples of transformed references. For more support, see advice on settlement agreements, redundancy, and protected disclosures.
A teacher facing unfounded disciplinary allegations was initially offered a basic, one-line reference. Our solicitor negotiated a detailed reference with achievements and confirmation that no disciplinary findings were made, securing a senior role at a new school.
Frequently Asked Questions About Settlement Agreement References
What should a reference include in a UK settlement agreement?
A fair settlement agreement reference should clearly list your job title, employment dates, and any agreed achievements. The full reference text should be attached to the agreement, specifying no further verbal or written details will be provided.
Can I negotiate the wording of my reference clause?
Yes. You can and should negotiate reference wording and request positive details or the removal of negative points. Our solicitors regularly secure improved content for clients, making this a normal part of the settlement process.
Are employers legally required to provide a reference in a settlement agreement?
Employers are not legally obliged to provide a reference. However, once it is included in your settlement agreement, you have a contractual right to the precise wording and can enforce it if necessary.
What if my employer gives a negative or misleading reference after I’ve signed?
If a reference deviates from your agreement, this is a breach of contract. You are entitled to seek correction, compensation, or legal enforcement. Contact our solicitors promptly if you suspect your reference isn’t compliant.
Will my reference clause cover phone or LinkedIn enquiries?
Settlement agreements can and should be worded to cover all forms of reference, including written, verbal, telephone, or social media. Our solicitors recommend explicit bans on all unauthorised disclosures to prevent informal or back-channel references.
Are there special requirements for regulated sectors like NHS, teaching, or finance?
Yes. Sectors such as healthcare, education, or finance may need more detailed references or declarations to comply with regulatory requirements. Our solicitors regularly negotiate sector-appropriate reference wording.
How long does it take to get advice and sign a settlement agreement?
Our solicitors offer same-day review and remote advice. From first contact to finalising your agreement, the process can be completed within 24 hours, subject to your employer’s response.
How much does settlement agreement legal advice cost me?
There is usually no cost to employees, as employers are required to pay settlement agreement legal fees. Our advice and reference support is always free to the employee.
A well-written reference clause in your settlement agreement safeguards your reputation and supports future job opportunities. As highlighted above, clear and positive reference wording can prevent future problems, while a detailed negotiation now can protect your career after redundancy, disputes or whistleblowing. Our solicitors offer specialist negotiation, enforcement, and legal advice — all free to you, with employers paying the fees. To secure expert help, call Settlement Agreement Lawyers on 0800 054 1144 or book your settlement agreement advice online for a same-day remote appointment.
Karim Oualnan, Partner
Client Success Stories
