Transaction agreements, previously known as „compromise agreements,“ set the terms of the agreement to settle an employment dispute. Many transaction agreements also contain a link for staff. A referral can help the employee find a new job faster, reducing the financial impact of leaving your business. If you are an employer who lets employees go after the Covid-19 outbreak, counsel is essential if you want to ensure that you limit the risk of an angry employee suing you in the labour court. An employer whose standard contribution is relatively basic may, if challenged in this position, argue that he only has to provide the legal advice that the worker must obtain within the meaning of the transaction agreement legislation to establish a binding transaction contract and thus protect the employer from the rights. Early offer of redundancies – In the event of voluntary dismissal (usually with extended severance pay), the employee requests dismissal at an early stage of the process. If the employer accepts voluntary dismissal, in exchange for payment of an extended package to the worker and/or permission not to provide notification (and to pay rather than payments), everything is counted in a settlement contract. The aim is to avoid the risk of litigation at a later stage. But what matters is that if you think you have an employment tribunal case and you don`t want to enter into a transaction agreement, it`s important to act quickly. There is a three-month delay in collecting most labour court applications, so it is essential to advise legal issues in a timely manner. An agreement under which you waive your right to invok a work application can only be recognized by law if a certified lawyer, union or advisor signs it. Most of the time, it will be by a qualified lawyer, but it could also be a union representative or an adviser with the authority to advise on transaction agreements.

If a worker is unable to perform his or her duties due to a long-term illness, the employer will sooner or later consider terminating the worker`s employment. Sometimes an employer may prefer to terminate employment under a transaction contract to avoid the risk of rights that may include discrimination on the basis of disability and wrongful dismissal. These are important issues that need to be taken into account: transaction agreements are voluntary and are generally achieved through a negotiation process. The employee`s counsel should advise the employee if the agreement is intended to prevent disclosure of the public interest and seek to amend the agreement.