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A settlement agreement is a legally binding document created between an employer and an employee after a dispute, aimed at resolving potential or actual claims before reaching an employment tribunal. At Stephensons, having experience with both employers and employees provides insight into the arguments presented by each side. These agreements help avoid costly litigation, offering employees guaranteed upfront payments instead of risking a tribunal's outcome. For employers, they ensure no future claims arise from former employees. Typical components of settlement agreements include payment terms, claims settled, taxation, and confidentiality clauses.
