A settlement agreement between an employee and an employer is a legally binding document drawn up shortly after or before the employee`s dismissal. There are also other types of agreements, namely a debt settlement letter, a draft divorce agreement, a payment transaction agreement and much more, all of which have different transaction agreement formats. Now that you have added an instruction to the reflection, you must then insert a statement that describes the extent of the claims to be settled. There are a few cases where not all comparisons resolve all complaints in the dispute. That is why it is important to discuss it with both parties to ensure accuracy. .