Risk and benefit analysis must be completed and factors that the employer should consider include saving management time, legal costs and other economic considerations related to preventing long performance/redundancy/disciplinary/disease management. In the event of a risk of an application, a financial settlement may be attractive to avoid the right of continuation, the associated costs and, in some cases, the risk of negative publicity or harm to staff relations. Your employer will discuss with you what should be in the agreement, either face to face or in writing. Think about the motivations and fears of the opponent. Your employer may be concerned about the cost of defending litigation or bad publicity. They might try not to have a reputation for paying people. If so, your lawyer may propose changes to the agreement to give your employer an additional guarantee that the agreement will be kept confidential. There are parts of the settlement agreement that I don`t understand or can`t respect – is that important? Your employer usually pays for you for independent legal advice. If you sign a transaction contract without first seeking independent legal advice, you can still go to an employment tribunal. A draft transaction contract may be submitted to the worker (with the registration “without prejudice and in accordance with the contract”) and invited to be advised as soon as possible and to resign from the employer. Although this is a draconian and risky approach, employers sometimes dismiss workers with immediate effect (or with a redundancy payment) and at the same time hand over a draft transaction contract with a time frame in which they can react. Even if you`re not ready to sign a transaction agreement at first, there may be benefits. Work court proceedings can be costly, time-consuming and incredibly stressful.
A realistic transaction agreement, taking these other factors into account, may be a good result. It will also bring some degree of closure to a potentially difficult time in your life. You can be very satisfied with the offer of a transaction contract. You must obtain legal advice before signing, but nothing else prevents you from signing the proposed transaction agreement. Similarly, you do not have to accept the offer. As the CASA code of conduct for transaction agreements makes clear, transaction agreements are optional. You can enter into a negotiation process to get a transaction that satisfies you or simply refuse any discussion. The contract is “contract-based,” i.e. it does not hire the employer or the worker until it is signed. For example, you informed colleagues of your negotiations before seeing the confidentiality clause and they understood that you had to keep the existence of the agreement confidential. If you sign a clause that you have already violated (or if you violate the clause after signing) and your employer finds out, they may argue that they no longer need to respect their side of the bargain. You can refuse to pay compensation or even try to recover money they have already paid you.
What is the difference between an ACAS agreement (COT3) and a transaction agreement? The employer simply invites the employee to a meeting at a time favourable to both parties. In most cases, the employer does not wish to inform the worker in advance that the purpose of the meeting is to discuss billing. On the other hand, it may be useful to refer to the underlying issue that led the employer to submit the offer and to point out that it is an informal discussion on this issue. Your lawyer should advise you on the ongoing loss of pension, especially if you have a permanent pension.