Document background
The Settlement Agreement Between Employee And Employer is a critical legal document used in Pakistani employment contexts when parties wish to formally resolve employment-related disputes or agree to termination terms outside of standard resignation or dismissal procedures. This document becomes relevant in situations involving voluntary separation packages, dispute resolution, redundancy situations, or when addressing specific workplace grievances. It typically includes comprehensive terms covering financial settlements, confidentiality provisions, mutual releases, and future obligations, all structured within the framework of Pakistani employment and contract law. The agreement must comply with various Pakistani legal requirements, including the Industrial Relations Act 2012 and Contract Act 1872, while addressing practical aspects such as tax implications and post-employment obligations. It serves as a full and final settlement of all claims between the parties, providing legal certainty and protection for both employer and employee.
