Following updated guidance, school academy trusts entering staff settlement agreements without proper authorisation could risk breaching new requirements.
Polly O’Malley, head of education employment at UK and Ireland law firm Browne Jacobson, said: “Academy trusts should be aware that the Department for Education (DfE) yesterday (22 October) made amendments to the Academy Trust Handbook, which place new restrictions on the use of confidentiality clauses in settlement agreements.
“Trusts that use such clauses without DfE consent risk being in breach of the handbook’s new provisions, which are immediately effective. They should therefore handle new settlement agreements and COT3 agreements carefully, seeking legal advice where they are unsure on how to proceed.
“We anticipate challenges in implementing the new wording over the coming days and weeks. The DfE may find there are a large number of trusts seeking consent, which could lead to delays.
“If a trust has entered into a settlement agreement or COT3 on or since 22 October 2025, and have any concern about these changes, please contact us directly and we will be happy to help.
“Browne Jacobson plans to engage with the DfE, as appropriate, to seek further clarification on the new provisions and represent any concerns conveyed by our clients on this issue.”
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Dan Robinson
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Dan.Robinson@brownejacobson.com
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