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When an Employer and an Employee Settle an Employment-Related Dispute, What is Included in the Settlement Agreement?

/ 10/31/2010

Employers and employees may find themselves in disputes with one another.  Quite often, these disputes can be resolved via mediation or settlement negotiations between attorneys.  If so, the parties usually enter into settlement agreements.  But what terms does a settlement agreement between an employer and an employee typically contain?

Arguably, the two most important provisions in most settlement agreements address payment and a release from liability.  One party typically agrees to pay money to the other party in exchange for the party’s release of any claims that arose prior to the settlement date.  For matters in which litigation has commenced or in which a party has filed a charge of discrimination with an administrative agency, the agreement will likely contain a clause requiring the party to dismiss the action or withdraw the charge. Settlement agreements between employers and employees may also address non-compete and non-solicitation concerns, non-disclosure of company information, the employer’s provision of a reference letter, confidentiality and the employee’s return of company documents and information. 

To speak to a Dallas, Texas labor and employment law attorney about an employment dispute, contact the labor and employment lawyers at the Dallas law firm Clouse Dunn Khoshbin LLP at [email protected]


Press Release Contact Information:


Clouse Dunn
Khoshbin LLP

214.220.3833 ( fax)
[email protected]

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