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A Settlement Agreement is a legally binding contract made between an employee and employee. It is usually entered into at the termination of employment and sets out the full terms between the parties.

A settlement agreement is a really good opportunity to negotiate a fantastic reference. You could even write it yourself and ask your employer to endorse it!When considering what counter-offer to make, take some time to think about what you really want in the settlement.

Then a reasonable settlement agreement payment would be between 1 and 4 months' salary plus notice pay. If you have evidence of discrimination or whistleblowing, you may be able to get more, and the 2 years' service requirement doesn't apply.