Confidentiality Clauses in Severance Deals
Academy trusts have been warned that they risk breaching rules over the use of confidentiality clauses in severance deals with staff.
The Department for Education (DfE) has changed its rules, requiring trusts to secure approval before including confidentiality clauses in settlement agreements with outgoing employees.
Polly O’Malley, of law firm Browne Jacobson, said leaders must be “aware” of the changes, or risk inadvertently breaching academy rules when signing off on severance payments.
- Trusts must now secure DfE approval for confidentiality clauses in severance deals.
- Staff severance payments must be “in the trust’s interests” and “justified”.
- Decisions must be based on a legal assessment of the trust’s chances of successfully defending the case at an employment tribunal.
Author's summary: Academy trusts must now secure DfE approval for confidentiality clauses.