noun
settlement payment; out-of-court settlement money
Legal term for money paid to resolve a dispute without a court ruling. Often used in civil cases, labor disputes, or accident claims.
会社は元従業員に和解金を支払った。
The company paid a settlement to the former employee.
交通事故の被害者が加害
The victim of the traffic accident received a settlement payment from the perpetrator.
賠償金 is compensation for damages, which may be ordered by a court, whereas 和解金 is specifically a payment agreed upon to settle a dispute.
Compound of 和解 (settlement, reconciliation) and 金 (money). The term is a straightforward modern legal compound.