SEEK (ASX:SEK) said on Thursday that it has reached an agreement with Employment Hero to settle a legal action initiated by the recruitment and payroll platform, and the Federal Court has ordered the proceedings to be discontinued.

Employment Hero has now accepted that SEEK's June notice to terminate its access to the online employment marketplace company's Application Programming Interface (API) was not intended to "substantially [lessen] competition," according to a spokesperson.

SEEK will now restore Employment Hero's access to its API, enabling Employment Hero customers to post jobs via SEEK.