Settlement Agreements are great for both parties, the main benefits of entering into a Settlement Agreement is that it provides a good level of certainty and understanding between both parties (employer and employee).
For the employer, they get protection in that their ex-employer will not bring legal action against them in the Employer Tribunal by having their employment rights waived.
From an employee perspective the settlement agreement will confirm the value of the payment that their employee will make. This will generally be higher than any salary you would be paid as they would like to urge you to sign and move on). It will also include details about any reference and a pledge that the termination is completely amicable.
Once it’s been signed by both parties and your advisor has provided a certificate the agreement becomes legally binding.