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a settlement agreement is an agreement between an employer and an employee usually in the settlement agreement the employee waives their rights to bring employment claims on the basis that the employer pays a discretionary termination payment this could be in the form of an enhanced redundancy payment or a compensation payment for loss of office its a legal requirement that the employee receives independent legal advice on the terms of the agreement and the employees inability to pursue employment claims its important for the legal adviser to assess the some being offered the independent legal adviser needs to consider whether the employee has any potential claims the merits of any claims and the value of any claims these factors as well as the stresses of bringing an employment claim and the costs need to be weighed up against the offer to determine whether the offer is a reasonable one in some cases it may be possible to negotiate a higher offer even if the employee does not have
