There are a number of scenarios in which transaction agreements are used. They generally apply when the employer does not wish to go through a process that can be long and lengthy, such as a benefit review or a full termination process, before they can resign. If you already have discrimination issues or have filed a complaint, the employer may want to circumvent a right to constructive dismissal and/or discrimination. Your lawyer will check your employee`s contract before establishing the settlement agreement to ensure that the amounts you offer your employee are as tax efficient as possible. Since the transaction agreement requires your employee to grant you tax compensation, the amounts proposed must comply with tax legislation. Contact your nearest citizens` council or a local lawyer if you need help deciding whether you want to accept your employer`s offer. Your employer may have told you that the offer was “non-negotiable.” However, the fact is that few offers are non-negotiable, as it is rare for one party to hold all the cards. The indication of a “reason to leave” in a transaction agreement usually does not matter. However, if both parties are bound by confidentiality, it may be helpful to agree on what you are going to tell your friends/colleagues and potential future employers about the reasons for your departure. Frequent reasons are “dismissal” and “mutual agreement”, but some agreements do not mention the reason for the withdrawal at all. It`s important to determine what your employer is going to tell potential future employers about your job and why you left – for example, by agreeing on the wording used in each reference they provide.
While it is possible to negotiate the terms of a settlement agreement, staff should consider the time, costs and burdens associated with pursuing an employment right, as well as the possibility of losing before rejecting a proposed settlement agreement. Exercising a right can take months or even years, which means a long waiting time to get a premium compared to a normally quick payment under a settlement agreement. If your employer dismisses you, it should be subject to a formal consultation procedure. This implies that it is important that the agreement reached is fair. Each case is different; One person might be looking for money, while another person needs a good reference or even reinstatement in their job after the dismissal. Most concordat agreements lead to a “clean break” – where workers and employers separate – but sometimes the employment relationship continues thereafter. . . .