Getting a job after a settlement agreement
Getting a job after signing a settlement agreement can be daunting. Whether you’ve recently left a job with a settlement or are thinking about a settlement, it’s important to understand how it may impact your future employment.
Below are a few of the points to consider when you’re getting a job after a settlement agreement and some tips on securing your new job confidently, without letting your settlement agreement hinder your job search and applications.
For further detail, see our main guide on settlement agreements. Links to our other relevant guides are highlighted throughout.
Understanding your settlement agreement
If you understand the terms of your settlement agreement you’ll be better able to handle the rights and responsibilities associated with it when you move forward in your career. Above all, you’ll be less likely to break the terms of the agreement unintentionally.
A settlement agreement is a legally binding contract which sets out the terms of the agreement you have reached with your employer. It covers such matters as financial compensation, confidentiality clauses, and restrictions on future employment, all of which are explained in more detail in our main settlement agreement guide.
Impact of a settlement on future employment
If you’ve signed, or are about to sign a settlement agreement, you may well wonder how the circumstances of your leaving your job will affect your ability to find new employment.
Job references
Apart from the financial package, a job reference is one of the most important issues likely to affect your job search. Your former employer may agree to provide a job reference. However, the content of the reference could in part be determined by the terms of any existing settlement agreement.
So, it’s always best to ensure that questions about a reference are sorted out during the drafting of the agreement and incorporated into it, and not left until afterwards. Your reference should be worded in such a way that it supports your job search rather than makes it more difficult.
Post-termination restrictive covenants
Some settlement agreements include what are called restrictive covenants (aka non-compete clauses, non-solicitation clauses, post termination covenants). These prevent you from working with certain competitors or poaching (‘soliciting’) former clients, for a specified period of time after you’ve left your employment.
Understanding these restrictions is important so as to avoid breaking the terms of your agreement when pursuing new opportunities.
Explaining why you left with a settlement agreement
How you explain your departure from your previous job to potential employers can significantly impact their perception of your job application. In this respect, we recommend that you should:
- Be honest but don’t feel obliged to divulge everything about your settlement: there’s no need. However, don’t evade any specific questions that may arise about it or why you left.
Instead, focus on positive aspects, such as your wish to seek new challenges or opportunities for growth. Keeping the explanation brief and professional also helps maintain a positive impression. - Emphasise the key skills and achievements you have acquired/developed in your previous roles. Demonstrating your value and what you bring to a new position can help shift the focus from why you left your last job to what you can offer in the future.
Exploiting your existing networks
Your professional and other existing networks can be valuable resources in finding new job opportunities. Here’s how to make the most of them:
- Reach out to former colleagues: Reconnect with former colleagues who can vouch for your skills and work ethic. Personal recommendations can carry significant weight with potential employers.
- Attend industry events: Participating in industry-specific events and seminars can help you meet new contacts and stay updated on job openings. Networking in person can also often lead to opportunities that aren’t advertised publicly.
Updating your CV and online profiles
It’s really important to ensure your CV and online professional profiles are up to date, accurately reflect your current skills and are well presented. This applies whether you’ve had a settlement agreement or not. You’d be surprised how many CVs don’t meet those basic rules and end up being rejected!
Customize your CV for each job application, highlighting relevant skills and experiences that align with the job description. This approach makes your application more attractive to employers.
Keep your LinkedIn and any other similar profile platforms up to date, showcasing your achievements and professional journey. A strong online presence can attract recruiters and hiring managers searching for candidates with your expertise.
Seeking professional advice
Finding your way round the job market after a settlement agreement can be difficult, especially if you and your employer were involved in a dispute. Seeking professional advice can provide clarity and direction. For example:
- A specialist employment law solicitor can help you understand how the terms of your settlement agreement can impact your job search. They can also advise on any legal restrictions and how to address those restrictions with potential employers.
- Career coaches and job placement services can offer valuable insights and strategies to enhance your job search. They can assist with everything from CV writing to interview preparation, increasing your chances of securing a new role.
Staying positive and persistent
Unless you have a new job already lined up before you leave your present one, finding a job that’s right for you takes time, particularly if your departure was less than amicable and ended in a settlement agreement. Maintaining a positive attitude and staying persistent in your job search is key to overcoming challenges and achieving your career goals.
FAQs about getting a job after a settlement
Q: Should a reason for leaving be specified in my settlement agreement?
If an agreed reference and confidentiality clause are incorporated into your settlement agreement, specifying a reason for departure may not be necessary. This gives you more flexibility in explaining your departure to future employers in a way that best supports your job search.
However, if the agreement includes a mutually agreed reason, such as redundancy or restructuring, it can provide clarity and consistency in future job applications.
Q: Does a settlement agreement affect UK benefits like Universal Credit?
Yes, a settlement agreement can affect eligibility for benefits such as Universal Credit. Any lump sum payments received under the agreement may be counted as savings or income, potentially reducing or delaying benefits.
It’s advisable to check with the Department for Work and Pensions (DWP) or seek independent financial advice to understand how your settlement payment may impact your entitlement to benefits.
What Next?
Monaco Solicitors are UK employment law solicitors. We specialise exclusively in employment law for employees – not employers. Our experienced team of specialist employment lawyers understands the intricacies of settlement agreements and their impact on your career. We are committed to providing you with the guidance and support you need to secure your future employment confidently.
If you’ve been treated unfairly at work and/or need advice on a settlement agreement, don’t hesitate to reach out. Contact us today to discuss whether we can support you and how we can support you best:
Via this link
By email: communications@monacosolicitors.co.uk
By phone: 020 7717 5259
