Tag Archives: settlement agreement

Ninth Circuit Clarifies California Law Regarding “No Future Employment Provisions” in Settlement Agreements—But Also Leaves Several Open Issues

On April 13, 2015 we blogged about the decision of the Ninth Circuit in Golden v. California Emergency Physicians Medical Group, 782 F.3d 1083 (9th Cir. 2015). There, the Ninth Circuit considered whether, under California law, an employee could be ordered to sign a settlement agreement that included language that restricted him, inter alia, from future employment with his former employer.

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Admissibility of settlement discussions in court

Section 111A of the Employment Rights Act 1996 was introduced in 2013 and gives protection to the confidentiality of certain pre-termination negotiations. The section allows for “any offer made or discussions held” with a view to negotiating agreed terms for termination of an employee’s employment will not be admissible as evidence in a subsequent ordinary claim of unfair dismissal.

The privilege provided by section 111A is therefore more limited than that provided by ‘without prejudice’ discussions, the scope of which is wider. Without prejudice discussions can be used to resolve a much wider range of employment claims, not just unfair dismissal.

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