The compromise agreement may require an employee to keep any or all terms of the document confidential. The confidentiality clause in the agreement may allow the employee to disclose and discuss the terms only to his immediate family and/or professional advisers. The employer has the right to also impose a wider obligation of confidentiality with regards to all the sensitive and pertinent information the employee may have obtained during the entire length of the employment. Such information may include details of employer’s customers and trade secrets. He could also confirm if such confidentiality obligations are still applicable as stated in the employment contract (as in the case of restrictive covenants).
Most employers logically insist for all the terms of a compromise agreement to be kept strictly confidential. An employee usually could ask for practical exceptions to such confidentiality clauses so that he or she could discuss the agreement terms with his or her immediate family and/or professional advisors. In many cases, employers agree to such exceptions. But there could also be cases wherein an employer could opt not to do so. The employer has the right to mold the confidentiality clause in any offered confidentiality agreement.
Often, the employer asks for an assurance that the employee would not make any derogatory comments about the business after the termination of employment. This could be included in the confidentiality clause specifically stated in a compromise agreement. It may not matter whether any possible bad comments would be truthful or not. The employer may not like the idea of having a former employee speak ill about the business as this may somehow affect the overall image of the company.
Any possible non-compete clause in the compromise agreement may be directly linked to confidentiality terms. The employer surely does not want a former employee to use all important information when the latter performs his duties in a new job in another company. There may be highly sensitive information that may affect competition in the long term. In any case, the employer would want the employee to keep silent about what he may know about trade and business of the former employer.
If the employer would ask confidentiality clauses to be included in a compromise agreement, it would just be reasonable that you ask for clauses or terms that could be mutually beneficial. As an employee, you may also want to make sure the employer would honor the confidentiality agreement terms. The employer for his part may also agree not so say anything derogatory or bad about you.
The employer may agree to pay a sum in exchange for your agreement. Be particular about how such payments would be made. The additional payouts for the confidentiality agreement should be clearly and separately stated in the compromise agreement. Otherwise, it may be subjected to a significant taxation scheme. Have the guidance of a reliable employment solicitor before and during negotiations for any compromise agreement. You are required to hire an employment law specialist. Find and hire the best.