This is sufficient to satisfy the counterparty requirement and make the termination legally binding by agreement. An agreement with an employer is certainly better than a layoff, but it could also be a long process for an employee. If, for one reason or another, an employee needs to leave work quickly or take a new job, negotiations related to out-of-court termination may take longer than normal notification. For the agreement to be legally binding, either a settlement agreement (previously known as a compromise agreement) must be a legally binding agreement between you and your employer. This usually provides for severance pay from the employer in return for your consent not to assert claims in court or tribunal. We advise you on contractual disputes that concern business-to-business agreements, such as misrepresentations and errors that may affect the status of the agreement concluded by the parties and the agreement between them at the time of conclusion of the contract. While it`s not necessary, writing a termination letter can help preserve the company`s reputation and keep records for legal purposes….