Dear Naveen,
By settlement what we actually mean is the amicable resolution of all contentious issues between the disputants either by direct negotiation or by conciliation/mediation by a third party.
In the memorandum of a settlement which is an enforceable agreement, conspectus or an introductory note is generally provided briefly stating the demands and counter demands/response of the disputants, the stretch of negotiations held in this regard and their smooth conclusion giving rise to an amicable settlement with the terms and conditions mutually agreed thereunder.
The operative part of a settlement contains the mutual rights and obligations enjoined upon the parties to the settlement deduced in unambiguous language in the form of terms and conditions.
The terms and conditions of a settlement depend upon the nature of the dispute between the parties. For instance, a full and final settlement regarding a non-employment issue is an ad hoc settlement which would automatically come to an end when the obligations mentioned therein are fully complied with; no more possibility of re-agitation. Generally a settlement regarding non-employment is an agreement prohibiting the right to reemployment under the same employer in lieu of certain monetary compensation in addition to all other terminal benefits.Settlements relating to other conditions of employment would be operative during the period of time agreed thereupon only and the same issues can be raised again after its expiry..