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Settlement agreements

08 April 2016

First introduced by statute in 1993, settlement agreements (previously known as compromise agreements) have become increasingly common as a means for an employer and employee to settle claims and/or effect a clean break from the employment relationship.

First introduced by statute in 1993, settlement agreements (previously known as compromise agreements) have become increasingly common as a means for an employer and employee to settle claims and/or effect a clean break from the employment relationship.

Given the legal implications of signing a settlement agreement, it is important that both parties understand the full effect of such agreements.

For a summary of the legal issues and claims that can arise when an employment contract comes to an end, see our inbrief guide Termination of employment.

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