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A settlement agreement is a contract between an employer and 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. It is legally required for the employee to receive independent legal advice regarding the agreement's terms and their right to pursue claims. The legal adviser must evaluate the offer, considering potential claims, their merits, and values. These factors, along with the stresses and costs of pursuing claims, must be balanced against the settlement offer to assess its reasonableness. There may be opportunities to negotiate a higher settlement even if the employee lacks strong claims.