The basis of a settlement agreement is simple – your employer offers you financial compensation or some other incentive for you to enter into a settlement agreement. By you signing this agreement to employer has peace of mind that you will not bring an employment-related claim against the company.
Negotiation is key when dealing with a settlement agreement. If the negotiation is done well you could end up with a better package. Not every employer is willing to negotiate further however it is always worth trying to enhance your package.
You will require expert legal advice and if negotiated properly, a settlement agreement can be the best way forward as what you are getting is set in stone and you avoid having to make a claim at an employment tribunal which may end up being costly and time-consuming.