Use of confidentiality clauses in settlement agreements for schools and colleges – updates to the handbook

The DfE today made a number of amendments to the Academy Trust Handbook and the College Financial Handbook specifically relating to the use of confidentiality clauses in settlement agreements. The amended provisions state the following:

Use of confidentiality clauses

5.13 (5.12 in the CFH). Confidentiality clauses associated with staff severance payments:

• must not prevent an individual’s right to make disclosures in the public interest (whistleblowing) under the Public Interest Disclosure Act 1998
• are novel, contentious or repercussive, and so must not be used unless the trust has obtained prior DfE approval 
• must not be used to prevent DfE from obtaining sufficient information from trusts[colleges in the CFH] to fully assess such payments under its regulatory role

The above provision has immediate effect. On that basis schools and colleges need to be mindful of the above when entering into settlement agreements, including COT3s in the context of Employment Tribunal claims.  

Stone King is intending to engage with the DfE to obtain further guidance and clarity on these provisions and will update clients in due course.