What happens after signing

Signing a settlement agreement means the deal is agreed, not that everything’s finished. There’s a short follow-through phase where timing and detail matter. Most agreements run smoothly, but it’s worth staying on top of things in case anything slips through the cracks.

After signing: quick checklist

• Return company kit and confirm data deletion (keep copies of payslips)

• File your signed agreement and final payroll documents

• Diary the settlement payment due date(s)

• Request your agreed reference when needed

Returning company property and deleting data

Most agreements require you to return company property such as laptops, phones, passes or documents by a set date, usually right after signing. Many agreements include a data deletion clause, requiring you to:

• delete work files from personal devices

• clear company data from cloud storage or inboxes

• confirm in writing that it’s been done

Only delete information that actually belongs to your employer. Keep your own records such as payslips, contracts or anything you’re legally entitled to hold. If you’re unsure, ask before deleting anything that might affect your tax, pension or employment history.

Pre-signing reminder: device ownership and tax

If you’re keeping a work device, make sure that’s written clearly in the agreement. If it’s being transferred to you free or at a discount, there may be tax to pay on its value.

Final payslip, P45 and other records

When your employment ends, you should get:

• a final payslip showing salary, holiday pay and deductions

• a P45 (if leaving mid-year) or a P60 (if still employed at year-end)

Employers must provide a final payslip and a P45 when you leave. A P60 only appears at year-end and shows your total pay and tax for the full tax year. If you leave part-way through, the P45 is your record instead.

Once everything’s signed and paid, keep a full paper or digital record of the key documents in one safe place. That includes your signed settlement agreement (often two copies signed in counterpart, keep both), your final payslip, your P45, and any payment confirmation or breakdown from your employer. You’ll probably never need them, but they’re proof of what was agreed, what was paid, and when. They can save you a lot of hassle if questions come up later.

Pre-signing reminder: chasing your P45

The P45 is easy to overlook and a pain to chase later when sorting pensions, new jobs or HMRC queries. Ask HR to send it while you’re still on their system.

Tracking your settlement payment date

Most settlement agreements set clear deadlines for payment, often within 7, 14 or 28 days. Check those dates carefully and add them to your diary or phone calendar.

If payment is late, start by chasing HR or payroll in writing. It’s usually just an admin delay, but having a note of the agreed dates makes any follow-up much easier.

Pre-signing reminder: interest for late payment

Most agreements don’t include any clause saying interest will apply if payment is late. Think turkeys voting for Christmas, same principle applies when it’s drafted by the employer’s solicitor. If you want to negotiate it, try 8% above the Bank of England base rate. If you can’t get them to agree or just forget, all is not lost, you can still claim statutory interest if you ever have to enforce payment later.

Requesting your agreed reference

If your agreement includes a reference, don’t assume it’ll be sent automatically. You’ll usually need to ask for it when you’re applying for a new job. If the wording is attached as a schedule, keep a copy. HR systems change and agreed references can vanish.

Pre-signing reminder: clarity on your reference

If the agreement promises a “standard reference”, ask what that actually means before signing. There’s no general legal right to a reference, so it’s important that any promise is in writing. Also check who will sign it and where it will be stored so it doesn’t get lost in the shuffle.

What if something goes wrong?

Even tidy agreements can go off track. Common issues include:

• a late or missed payment

• a reference not being provided

• a confidentiality clause being ignored

• a deadline being overlooked

Most of these are minor and easily fixed. A polite reminder usually sorts it, though sometimes it takes a formal letter. Once it’s signed, the agreement is binding and you can’t change it unilaterally. Any amendment needs written agreement from both sides, which is why it pays to get the detail right before signing.

If there’s a serious breach, you can enforce the agreement through the civil courts. The Employment Tribunal has a limited breach-of-contract jurisdiction that only applies after employment has ended, is capped at £25,000, and generally doesn’t extend to enforcing post-termination settlement agreements. If your employer hasn’t delivered what was agreed, get advice straight away before taking further action.