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the settlement agreement is a legally binding document between an employer and an employee following a dispute and the purpose of it is to resolve any potential or actual claim before it gets to the employment tribunal at Stephensons we have for both sides in these kinds of disputes so for employees and employers and we think that gives us a good insight into the types of arguments that either side are likely to put forward settlement agreements are a beneficial way of avoiding costly and time-consuming litigation and really they give an employee the guarantee of an upfront payment without the need to gamble on whether a claim is going to be successful as an employment tribunal from an employers perspective they give the reassurance that an former employee isnt going to be a claim against them at a later date typically settlement agreements include clauses relating to payments payment terms claims to be settled taxation and confidentiality and they can also include laws relating to