What is a Reaffirmation Letter?
Where there is a significant period between agreeing the terms of a Settlement Agreement and the actual leaving date, it is common practice to require an employee to sign twice, once at the date of when the settlement agreement is first agreed, and then, once more on or shortly after the Termination Date. This will normally be in the employee’s interest. This second signing is called reaffirmation.
In the reaffirmation letter (or reaffirmation certificate), the employee will usually repeat certain provisions of the Settlement Agreement – normally in respect of the waiver to bring employment related claims and warranties regarding confidentiality and conduct.
Usually, the employee will need to receive further independent legal advice on this and so a second Adviser’s certificate is required. Normally this will mean that the legal fees will be higher as the employee will need to receive advice on the terms and effects of the settlement agreement on two occasions.
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