Besides money, what terms can an employment mediation settlement include?

Besides money, what terms can an employment mediation settlement include?

Employment dispute settlements often include a variety of non-monetary terms that can be just as important as the financial payment. Because mediation allows creative, tailored agreements, the parties can negotiate provisions to address practical and personal needs. Some common terms beyond the dollar amount are:

• Non-Disparagement Agreement: Both parties (the employer’s representatives and the employee) agree not to make negative or disparaging comments about each other in the future. This helps protect the employee’s reputation and the employer’s brand. Essentially, each side promises to “take the high road” and speak no ill will.

• Neutral Reference or Letter of Recommendation: The employer may agree to provide a neutral job reference (confirming dates of employment and position, and perhaps final salary) so that the employee doesn’t worry about bad references when job hunting. In some cases, the employer might even agree to a positive letter of recommendation as part of the deal, which the parties can draft together. This term can be very valuable to an employee moving on to a new career opportunity.

• Reinstatement or Resignation Classification: Depending on the case, the settlement might include an agreement to reinstate the employee (for example, if the dispute was over a suspension or a misunderstanding and both sides truly want to continue the employment). More often, if the employment is ending, the settlement might state that the employee resigned as of a certain date, rather than was terminated. Having a resignation in their record (and possibly an opportunity to tell coworkers it was voluntary) can preserve the employee’s dignity.

• Employment Benefits: An employer might agree to continue certain benefits for a period of time – for example, extending health insurance coverage for a few months beyond the separation (through COBRA or directly paid), or allowing the employee to keep a company laptop or phone as part of the severance. These can be negotiated in kind to sweeten the deal without major cost to the employer.

• Policy or Training Changes: In cases that highlight a broader issue (say, a harassment claim that revealed a lapse in training), an employer might agree to institute new training, revise a policy, or take other workplace corrective actions. While this isn’t something enforceable by the individual beyond the agreement, it can be meaningful for the employee to know their case prompted a positive change.

• Apology or Acknowledgment: Especially in emotional disputes (like discrimination or harassment cases), an employee may want an apology or at least an acknowledgment of their feelings or perceptions. While apologies are tricky in legal settings (due to implication of fault), sometimes a carefully worded apology or statement of regret can be included. Alternatively, a mediator might facilitate an apology outside the written agreement. When genuine, this can be powerful for closure.

• Non-Admission Clause: On the employer’s side, they will almost always include a clause that says the settlement is not an admission of wrongdoing. This isn’t something the employee requests, but it’s a standard term that can be important for the employer’s peace of mind, and most employees accept it in exchange for the other terms.

To illustrate, Steve mediated a case where a long-term employee claimed age discrimination. The settlement not only provided a severance payment, but also included a term that the company would name an award after the employee to honor their years of service (something the employee suggested and the company found acceptable). This kind of creative term is only possible in mediation.

Overall, mediation settlements can be very comprehensive. They often read like a checklist of everything both sides care about: money, yes, but also reputation management, future job prospects, personal vindication, and business confidentiality. Steve is adept at exploring these needs. In fact, in mediation he’ll often ask, “Aside from the financial aspect, what else would you like to see as part of a resolution?” This invites both sides to put everything on the table. By the end, the settlement might span several pages covering all these points, ensuring that both the tangible and intangible aspects of the dispute are resolved to the extent possible.

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