Settlement agreements allow employers and employees to mutually agree terms to terminate a contract of employment and avoid a potential dispute.

Problems in the workplace are usually best resolved in open conversations, including, as appropriate, through the use of performance management, informal and formal disciplinary or grievance procedures and workplace mediation.

However, settlement agreements are also a tool that can be used to deal with sensitive and complex workplace problems.

Solutions for HR can assist in drafting and negotiating settlements to help end an employment relationship in a mutually acceptable way.

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