Employment certificate and reference arrangements in a settlement agreement

Before signing, record which employment certificate you will receive and what your employer will say when providing a reference.

Prevent disputes after employment has ended

At the end of employment, an employer must provide an employment certificate at the employee’s request. A positive recommendation or oral reference goes further and requires separate, clear arrangements.

Do not merely state that you will receive a certificate. Also agree what it will say, who will act as the referee and which information may be given to a prospective employer.

Practical certainty

Preferably attach the final wording of the employment certificate as a schedule. This prevents the parties from taking different views of the wording after signing.

Which arrangements belong in the settlement agreement?

Make the arrangement specific enough for the certificate and any later reference to be provided without further negotiations.

Factual details

Check the role, duties, working hours and start and end dates. These details must be accurate and recognisable.

Assessment and wording

Agree whether and how performance, commitment and departure will be described. Do not leave unwanted or ambiguous wording unresolved.

Referee and agreed message

Record who will act as the contact person and which information that person may provide orally or in writing.

Time of issue

Determine when the signed employment certificate will be provided: upon signing, on the final working day or with the final payment.

What is the difference between an employment certificate and a reference?

An employment certificate is a written document about the employment relationship. Certain additional details, such as how you performed your obligations and how employment ended, are included only at your request.

A reference is often provided later in response to contact from a prospective employer. Agree separately who will respond, which message will be given and whether the response will be limited to the agreed wording.

View the full negotiation guide

Review the arrangements in four steps

1Check the facts
Compare the role, duties, working hours and dates with your employment contract.

2Choose the desired tone
Decide which positive, neutral and additional information the certificate will contain.

3Arrange the reference
Record the contact person, availability and agreed message in writing.

4Attach the final wording
Include the final version as a schedule and agree when it will be issued.

Why this should be agreed before signing

Your negotiating position is often weaker after employment ends. A specific schedule and clear reference arrangement provide greater certainty when applying for jobs.

Have the arrangement checked to ensure that it is workable and is not contradicted by confidentiality, full and final discharge or other provisions.

Have your proposal reviewed

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