Previously, it was necessary to deal with a prior dispute with your employer (for example. B disciplinary procedure) before the “unprejudiced” rule can then be invoked by your employer without you referring the matter to a court. In recent years, the concept of “protected dialogues” has been introduced to allow the employer (and employees) to have conciliation discussions without any previous conflicts. No no. Layoffs are a potentially fair reason to terminate a worker`s employment. But often, an employer will ask an employee to sign a settlement contract in exchange for an improved redundancy package. Waiver: Your employer wants to make sure that the agreement prevents you from asserting your rights against your employer. The agreement generally defines rights that are waived (i.e. termination and/or infringement). Anyway, there will often be a huge list of statutes that you agree to waive any claim right.

That’s the way it goes. However, your employer cannot force you to waive your right to claim personal injury that you did not know at the time the contract was signed. Nor can you waive your right to acquired pension rights or enforce the actual terms of the agreement. Although this is not a requirement, you can include the “reason for termination” in the transaction agreement. This can be important if you have income insurance that only pays in certain circumstances. Some directives state that the reason for dismissal must be dismissal in order for payments to be made, so it may be important to include it in the agreement. We specialize in advising employees in transaction agreements that cover all types of labour disputes. If you are looking for advice on a transaction agreement, we`ll be happy to help – call us on 0333 331 4311 or fill out the contact form on our website. As a collaborator, you can settle for a transaction contract. In this blog, we answer the most frequently asked questions we receive and also give you practical instructions on what to do if a transaction contract is submitted to you. Pension: If necessary, payments to your pension fund must be continued until the termination date and, if a payment is made in lieu of a termination, your employer may be required to continue to contribute for an equivalent period of time, depending on the contractual terms. If you choose to pay part of the compensation to your pension, this must be included in the transaction contract, otherwise you will not be able to benefit from the tax-free nature of the payment to your pension.

Transaction agreements are legally binding contracts that allow an end to an employment relationship under agreed conditions. They can also be used to resolve an ongoing labour dispute, for example. B in the event of a dispute over leave pay. These agreements can be proposed either by an employer or by a worker, whereas it is usually the employer. 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.