Use this model settlement agreement proposal letter to enter discussions with an employee about ending their employment relationship. The agreement specified that the performance appraisal would still reflect a rating of "needs improvement.This settlement agreement template summarizes the key terms of an employment settlement between an employer and employee. The terms of any agreement will be dependent on the specific details of the particular claim(s) being settled. A Settlement Offer Letter is a communication between two parties in a dispute. A cover letter for a job application is shown in the above image, there are. 1 The parties are unaware of whether Equal Justice Under Law will be seeking to recover fees. On or about February 1, 2009, Plaintiff sent a Demand letter to Defendant, requesting resolution of the dispute prior to filing a complaint.