Getting a job after a settlement agreement is often possible. Signing an agreement does not automatically stop you looking for work or accepting another role. Before agreeing a start date, check your employment contract, the settlement agreement and when your current employment ends.
Can I find a job if there are no restrictions?
If your employment has ended and there are no applicable restrictions preventing the proposed work, you will generally be free to take another job. Do not assume that silence in the settlement agreement means there are no restrictions: it may preserve terms in your employment contract or another agreement.
There is also a difference between applying for a job and starting work. If you remain employed, your notice period, garden leave arrangements and existing duties may affect when you can begin. Ask your solicitor to check the documents together.
Check restrictions in your employment contract
Look for clauses about working for competitors, approaching customers or recruiting colleagues. A restriction may apply only to particular activities, clients, areas or periods. Its presence does not automatically mean it is enforceable, but you should not ignore it without advice.
Your solicitor needs the complete contract, any later changes and the proposed job details. This makes it possible to assess the particular role rather than give a general answer about changing jobs.
Does the settlement agreement keep or change those restrictions?
Check whether the agreement preserves existing restrictions, replaces them, releases you from them or introduces new obligations. The wording should make clear which terms continue after employment ends. If a proposed restriction would prevent you taking an identified role, raise this before signing.
You can ask for a written release for a particular employer or role, a shorter period or narrower wording. Your employer does not have to agree, so resolve the point before relying on permission.
Can I start work during notice or garden leave?
Signing the settlement agreement and ending employment are not necessarily the same event. Garden leave normally means you remain employed even though you are not working. Check whether you need consent to start another role and whether an earlier leaving date changes your pay or benefits. Record any agreed change in writing.
Do I have to disclose a new job offer?
Some agreements ask you to confirm that you have not received or accepted another offer, or require you to notify the employer of a change before a later signing date. These are contractual statements and must be accurate. Tell your solicitor about interviews, offers, accepted roles and planned self employment so the relevant wording can be checked.
If a statement is not true, seek an amendment before signing. Do not assume that a clause described as standard can safely be overlooked.
Will a new job affect my settlement payment?
There is no single answer for every agreement. Check for clauses linking payment to employment status, continued unemployment, a further signature or a promise about offers of work. Some terms may allow payments to stop or be recovered in specified circumstances. A new job does not automatically mean that every settlement payment must be repaid.
The distinction matters when comparing offers: a clear fixed payment and a payment subject to future conditions may have different practical value. Read our guide to negotiating a settlement agreement offer.
Agree references and protect confidential information
Ask for agreed reference wording and a clear process for responding to future reference requests. Check any permitted disclosures before sharing the agreement with a recruiter or new employer. Even without a restriction on changing jobs, confidentiality obligations may continue. Do not take client lists, documents or confidential business information to a new role.
What should I send my solicitor?
- The proposed settlement agreement and any reaffirmation document.
- Your employment contract and subsequent changes.
- Details of the new role, employer and proposed start date.
- Any offer, acceptance or written permission relevant to the move.
Get advice before signing or accepting a start date
Our settlement agreement solicitors can review the terms alongside your employment contract and explain what they mean for your next job. Call 0113 513 2047 to discuss your agreement.
Further guidance: Acas on employment contract restrictions and Acas settlement agreement template guidance.