What is a settlement agreement?
A settlement agreement is a legally binding document between you and your employer where in return for giving up your employment rights, you will receive a lump sum settlement.
There are many other terms that will be incorporated into the settlement agreement, such as payment of accrued holidays, pensions, your notice, bonus and salary up to the termination date. You will also usually have to agree to keep the agreement confidential and not to bad mouth your employer.
A settlement agreement will only be binding once it is also signed by your professional advisor. It is always best to obtain professional legal advice before entering into any such agreement as there is no going back once signed.