Confidentiality and non-disparagement clauses in settlement agreements
What confidentiality and non-disparagement clauses typically cover, and why precision matters before you sign.
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Confidentiality
Settlement agreements typically require you to keep the fact and terms of the agreement confidential, with limited exceptions (such as professional advisers or immediate family). Read exceptions carefully so you know what you can discuss.
Non-disparagement
Clauses may restrict negative statements about the employer. Some agreements seek mutual non-disparagement. Consider scope—online comments, Glassdoor-style reviews, and conversations with colleagues can all create risk if poorly drafted clauses are breached.
Whistleblowing and law
Certain statutory protections may limit how far confidentiality can extend in specific contexts. Raise concerns with your adviser if whistleblowing or reporting to regulators is relevant.
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