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Settlement agreements are normally used to bring an employment relationship to an end in a mutually agreed way. They are often used in situations where an employer and employee feel that their employment relationship is no longer working and a 'clean break' is the best way forward.
Compromise is an agreement between opposing parties to settle a dispute or reach a settlement rather than continue the dispute or go to trial.
How to Negotiate the Best Deal on Your Settlement Agreement Prepare Well for the Settlement Agreement Negotiation. ... Decide which negotiation tactics to use. ... Ask for a Protected Conversation with your Employer. ... Don't ask for too much. ... Don't ask for too little. ... Find out how the settlement payments will be taxed.
Counsel should always: Prepare a draft settlement agreement before each mediation. Discuss each provision with clients to increase their understanding, ensure their voluntary and informed consent with all terms and to determine valuable negotiation items.
Employers seem to believe that they have a God-given right to draft the release; it isn't usually worth fighting over, but plaintiff's counsel should carefully review and negotiate the terms of the release. Mediators or settlement judges can assist in drafting the release or resolving disputes about it.
What Should Be Included in a Settlement Agreement? Identifying information for all involved parties. A description of the issue you're seeking to settle. An offer of resolutions that both parties agree to. Proof of valid consideration from both parties without coercion or duress. Legal purpose.
So all settlement documents must be interpreted in the same manner as any other contract would be interpreted. And a settlement agreement does not need to be in writing to be enforceable. An oral settlement agreement entered into by the parties can be enforceable so long as it does not violate the statute of frauds.