A settlement agreement is where an employee gives up their right to bring legal action against their employer at the end of their employment, usually in exchange for payment.
Once an agreement has been reached, the employee has officially given up their right to bring a case against you in an employment tribunal.
It’s a useful option for many employers who are considering redundancy, for two reasons:
1. It protects the business
2. It also settles the end of the employee’s time in your employment, while still giving them something.
