Have you just got an employment contract? Our nationally recognized employment team, led by Paul Grindley, will advise you on transaction agreements (formerly known as compromise agreements) in the UK. However, if you are convinced that redundancy is real, you better negotiate on the basis of goodwill. Instead of threatening a lawsuit, you can get a better result by simply asking your employer to be more generous. This is more likely if you have a good relationship with your employer. To become legally binding, the worker must obtain independent legal advice to ensure that he understands the terms of the contract. At the end of the group meeting, one-on-one interviews or telephone meetings may be arranged with any staff member in a private meeting to take care of all instructions and advise them on the terms of the agreement; and under what circumstances is a compromise agreement appropriate? Most employers (and their lawyers) use standard billing agreements designed to be « unit-friendly. » If there are certain claims that are obviously more likely to be applicable in your circumstances, they are sometimes mentioned separately in the agreement. They are sometimes referred to as « special claims. » Unfair dismissal is the most common, but if you resigned in the context of a health problem, discrimination on the basis of disability would also be a special right. Do I need independent legal advice before I sign a transaction agreement? How much would it cost and how can I pay for it? When an employer offers a number of employees a settlement contract, all of which requires independent legal advice, this can be a considerable effort, especially when a number of different lawyers are responsible for acting for each worker to advise them on the terms. However, in order to streamline the process, the employer can transfer direct employees to a single law firm to advise all employees on the transaction contract. This scenario is acceptable if the legal counsel is not or is not acting for the employer or associated employer. If you agree to a transaction contract rather than layoffs, you will generally receive more money. If not, what is the incentive for you to accept the transaction contract? If you seek advice from a lawyer on a transaction agreement, but decide not to accept the proposed terms, you may still have to pay all legal fees.
Your employer`s obligation to participate in your legal fees is only valid if you sign the transaction agreement. Your lawyer will explain the consequences. It is important that the agreement reached is fair. Each case is different; one person could look for money while another may need a good referral, or even return to work after his or her dismissal. Most transaction agreements lead to a « clean break » – where workers and employers share the business – but sometimes the employment relationship continues after that. Here are a few examples: check the original draft settlement agreement before it is given to each employee to verify that the general drafting is appropriate and remove the common issues. This saves time and costs; 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.