On 29 July 2013, the Government made a number of changes to labour law in the United Kingdom. A large part of these changes has been to replace compromise agreements with transaction agreements. What is a compromise agreement and what is the benefit you (and your employer) have to use it? The advantage for the employer is that it is able to draw a line under a worker`s departure or complaint and is protected from future rights. The benefit to the employee is consideration, for example. B a reverse financial sum, provided for by a legally binding contract. In addition to confidentiality clauses, a compromise agreement may also include an agreed reference. A breach of the compromise agreement and any financial harm that could cause the other party may result in an action in court. They may have many questions and need the help of a friendly and experienced labour law expert. We can explain the terms and effects of the agreement or compromise agreement, clear up any confusion and make sure that you are satisfied with the proposed package. An independent advisor is only required to discuss the terms and effects of the agreement.
However, in determining whether the terms should be accepted or not, it is also important to balance the pros and cons of the proposed agreement. Instead of going through the legal process, employers and workers will sometimes decide to enter into a transaction agreement. A transaction contract is a legally binding agreement between the employer and the worker. We will be able to get the stress out of this difficult time for you by explaining what claims are compromising you and what the transaction contract really means. If you have been offered a transaction contract, are facing the possibility of redundancy or are looking for an exit from your job, you need the best possible help. In addition to the aforementioned legal requirements, the content of a compromise agreement is largely left to the discretion of the company and the employee concerned. Examples of common clauses are: for a transaction agreement to be valid, you must obtain independent legal advice. Talking to the right legal expert can make the difference in the outcome of your situation. A large number of legal rights can be settled by a compromise agreement, for example.B. Claims for: In many cases, a company may want to pay an employee in exchange for an effective waiver of its potential rights. Companies can reach an agreement with an employee to settle potential claims while they are still working for the company, but in most cases their employment is terminated (or just before the end).