Q: I have been asked to consider the terms of a settlement agreement as part of a managed exit due to ill health. I have looked through the terms and the financial part of the agreement, which appear to be correct, although I remain uncertain with regards to my pension provision. A: A settlement agreement is a legal document and is often used when an employer and an employee who are in dispute agree the terms on which the dispute will be settled. In some airlines, settlement agreements are also used when it has been declared that the company's permanent loss of licence payment should pay out, and the employer and employee agree to terminate the employment contract. As part of this agreement, the employee waives the right to bring potential future claims and the employer will pay an agreed sum of money to the employee in return.
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