A legally binding contract resolves disputes between employers and employees. It typically involves the employee agreeing to waive their right to pursue further legal action, often in exchange for financial compensation or other benefits like a neutral reference. For example, such a contract might be used to resolve a disagreement regarding alleged wrongful termination or discrimination.
These resolutions offer several advantages. They provide a predictable outcome, avoiding the uncertainty and expense of litigation. They also offer confidentiality, protecting the reputations of both parties involved. Historically, these types of agreements have become increasingly common as a means of resolving workplace disputes outside of court, offering a more efficient and less adversarial process. This approach fosters quicker resolutions and allows individuals and organizations to move forward.