Properly crafted transaction agreements are legally binding, which is why the law says they are only valid if you have used independent legal advice on the terms and effects of the transaction contract before signing. In most cases, your employer contributes to your legal costs for this consultation. The transaction contract is a legal contract between you and your employer – you both have to comply. Your employer may want you to have the confidentiality of the agreement. For a transaction contract to be valid against you, it must refer to certain sections of labour law. It must also contain clauses that say you are waiving some (or all) of your labour rights. . Many of the terms used have specific meanings that are necessary to give the transaction agreement its intended effect. Transaction agreements offer the benefit of security and a clear break between a worker and his employer. A staff member is guaranteed a termination document detailing the financial severance pay he or she receives, as well as other aspects of dismissal, such as . B of a job reference.
For its part, the employer is guaranteed that it will not have to face a future demand from this employee. For these reasons, many employers and workers use the transaction contract, even if an employer has gone to a fair trial and/or terminated the employment by mutual agreement. Violation of the agreement: The transaction agreements probably provide that if you violate one of its terms, you will have to repay some or all of your employer`s payments and that you will reimburse them for future costs and procedures if you try to recover the same thing (and, in some cases, losses resulting from the violation). This is a customary clause, although it often needs to be watered down, so only a “material” offence should result in a refund, and even then, the refund should not include the amounts you are entitled to collect in all cases (for example. B, contractual terminations). Our settlement agreement attorneys can help if you need to: It is important that you understand everything in the agreement, and if there is something you cannot fulfill (or a term you have already violated), you should discuss it with your lawyer. As a general rule, it does not matter if there is a “reason for withdrawal” in a transaction contract. However, if both parties are bound by confidentiality, it may be helpful to agree on what you will tell your friends/colleagues and future employers about the reasons for your departure. The frequent reasons are “redundancy” and “mutual agreement,” but some agreements do not mention the reason for the withdrawal at all. It`s important to determine what your employer will tell future employers about your work and why you left – for example, by skinning the wording used in each reference they provide. There are parts of the settlement agreement that I don`t understand or can`t respect – is that important? Sometimes we may not be able to offer a “No no-fee increase.” Perhaps it is because we do not think there is a good chance of negotiating a higher settlement.
Employers often offer to pay an employee`s legal fees for the transaction contract, but this will deviate from employers and is not always the case. A transaction contract is a legally binding contract between the worker and the employer, which pays the rights (usually present or too future) that the worker may have against his employer. An agreement can only be recognized by law if a lawyer or independent advisor certifies the agreement. Our specialist employment team is happy to advise you on your transaction contract and your rights. Confidentiality: This clause prevents you from discussing the terms of the transaction agreement and, in some cases, the circumstances surrounding it. It`s quite common. However, you must ensure that you are able to discuss the agreement with your immediate family and you should also have the opportunity to inform potential employers of the reasons for your departure (in general).