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A settlement agreement is a legal contract between an employer and an employee, where the employee waives their rights to pursue employment claims in exchange for a discretionary payment, such as an enhanced redundancy or compensation for loss of office. Independent legal advice is mandatory for the employee regarding the agreement's terms and their rights. The legal adviser must evaluate the offers made, consider any potential claims, their merits, and values, as well as the stress and costs associated with pursuing claims. This assessment helps determine whether the settlement offer is reasonable, and in some cases, it may be possible for the employee to negotiate a higher offer.