A settlement agreement, also known as a compromise agreement, is a legally binding contract between an employer and an employee, typically used to resolve disputes or terminate the employment relationship on agreed terms.

It outlines the terms and conditions agreed upon by both parties, including any financial compensation, confidentiality clauses, and other relevant provisions.

Settlement agreements are often utilised to provide a clean break for both parties, offering a mutually acceptable resolution while minimising the risk of future litigation.

They are commonly used in situations such as redundancy, disciplinary matters, or grievances, providing a structured, pragmatic and efficient way to bring closure to employment-related issues.

We can guide you through the process of drafting, negotiating, and implementing settlement agreements, ensuring compliance with relevant employment laws and protecting the interests of your business.