Transaction agreements (formerly known as compromise agreements) are legally binding contracts that are used to terminate an employment relationship under agreed conditions. They prevent a person from filing a labour application against his employer in the cases covered by the agreement. A transaction contract is a contract between the employer and the worker. It is generally used as a means of providing an employee with a sum of money (compensation) in return for the worker who waives his or her rights to assert certain labour court claims against the employer. Transaction agreements often contain confidentiality clauses, so it is important that if you have reached an agreement, you do not discuss their existence or content with anyone, especially colleagues, before seeking legal advice. If your employer wants to terminate your employment, either because of redundancy or because they have expressed doubts about your performance or behaviour, they may ask you to enter into a settlement agreement. The first step is to contact a lawyer for legal advice. This is a crucial step in that transaction agreements must have been concluded, signed in writing and received independent legal advice from a lawyer or other qualified person. Section 111A specifies that offers of termination on agreed terms (i.e. as part of a transaction agreement) may be made confidential in certain circumstances and therefore cannot be used as evidence in an unjustified right of dismissal. A fundamental difference between this principle and the principle of impartiality is that the parties must not be in dispute before a confidential notice hearing is opened under Section 111A.
Employers can also use transaction agreements when an employee stays in the company, but the employer wants to ensure that a dispute has been completely resolved. When an employee signs a transaction agreement, he signs his right to sue his employer. As an employee, you must obtain independent legal advice under the transaction agreement. We have a lot of experience advising employees on transaction agreements. If you have a draft transaction contract to verify, you can contact us on 023 8071 7717 or contact firstname.lastname@example.org by email and we will assist you as soon as possible. Your lawyer`s legal task is to explain the terms and effects of the transaction contract itself. However, your lawyer is happy to advise you on the merits of any legal rights you have against the employer. This includes checking whether you may have an unjustified right to dismissal or protection from discrimination. This will help you determine if you have a fair billing plan. We advise you on your transaction contract and explain each section. The main clauses on which we will draw your attention are: the terms negotiated through transaction agreements can often be a better financial result of what the worker can achieve by leaving an employment tribunal. This is due in part to the uncertainty and „risk of trial” of the complaint to a court.
However, it can also give staff control over certain conditions, such as . B an agreed reference or announcement. These are terms that can be extremely valuable to an employee. Because employers are aware that you need legal advice to make a transaction contract effective, most employers will contribute to your legal fees. Your employer will offer you a first budget, often 250 USD PLUS. We can help you negotiate the best possible terms for each proposed transaction agreement and advise you on your legal rights and remedies.