Settlement Agreements are used in order to end an employment relationship on agreed terms. It is a legally binding document and can also be used to resolve ongoing workplace disputes. As a result of signing the agreement, the employee will be unable to make claims in the employment tribunal about any type of claim which is mentioned in the agreement. It can be a useful tool to use, on the back of instigating a “without prejudice” or “protected” conversation. It is not uncommon for Settlement Agreements to be proposed before the end of a financial year, it is therefore important for both employees and employers to understand the law on them and their application.