A settlement agreement is a deal reached between an employer and employee to end the employment relationship on agreed terms and usually on a confidential basis. The employee agrees not to bring an employment tribunal or court claim about the issues covered in the settlement agreement, often in return for a compensation payment. Settlement agreements were previously known as compromise agreements.
Social media firm and its owner Elon Musk have reached a settlement with some of its former employees who had sued for $500m (£373m) in severance pay.