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What Does Settle An Agreement Mean

Previously, they were called „compromise agreements“. The name was changed in 2013, the purpose of the change was to better reflect what the agreement is. Essentially, a settlement agreement is a means by which an employee agrees not to make a labour law claim against something – usually financial compensation, although there may be other benefits beyond that – from the employer. In most cases, two parties are free to enter into a legally binding contract with the other. However, since an employee can waive valuable rights by signing a settlement agreement, the law is intended to protect employees by requiring them to seek independent legal advice before signing.



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