References are not automatically addressed by every settlement agreement, but it is one of the most commonly negotiated terms — and one worth getting right, since it can directly affect your next job search.
What can you negotiate?
Many settlement agreements include an agreed form of reference, often attached as a schedule to the agreement itself. This sets out exactly what your employer will say if a future employer asks — giving you certainty over the wording, rather than relying on whatever the person who takes the call decides to say on the day.
Worth checking
If your agreement doesn't already include a reference clause, this is something you can usually ask to negotiate before signing. Our settlement agreement checklist covers what to look for.
Even an agreed reference must be fair and accurate — your employer cannot be asked to say something that is knowingly false or misleading. What you're really negotiating is the tone and framing within what's truthful.
Without an agreed reference, your employer will typically fall back on their standard policy, which in many organisations is a bare "confirmation only" reference — just your dates and job title, with no further comment. If a more substantive reference matters to you, it's worth raising this as part of the negotiation.
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Get in touch →This article provides a high-level overview for general information purposes only and does not constitute legal advice. It should not be relied upon as a substitute for specific legal advice tailored to your individual circumstances.
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