Is it legal for a company to ask employees to sign a document waiving their legal rights?

Full and final settlement documents with a general release or waiver clause are fairly common in employment exits, and courts have generally upheld such waivers where they were signed voluntarily, with proper understanding, and in exchange for genuine, adequate consideration (such as your agreed settlement amount) — but a waiver obtained through coercion, without your full understanding, or covering rights that legally cannot be waived, may not be fully enforceable.

Before signing anything like this, it's important to carefully read exactly what rights or claims you're being asked to give up, and to confirm this reflects a settlement you're genuinely comfortable with — including whether all your outstanding dues (final salary, unused leave encashment, gratuity if applicable) are being properly and completely settled as part of this document.

If you have any specific unresolved grievance or claim against the employer that you don't want to give up, you should raise this explicitly before signing, since signing a broad waiver could limit your ability to pursue it later. Given how significant these documents can be, it's worth having a lawyer quickly review the specific wording before you sign, especially if there's any unresolved dispute or dissatisfaction with your exit terms.