In order to make the settlement agreement legally enforceable, the worker should benefit from independent legal advice on the agreement. This means that the worker must have the agreement declared by an independent labour law agreement. The employer usually covers the costs of the employee who declares the transaction agreement. Where are the employers? I do not think it is in a better position than it is now. If discussions take place prior to termination, including with the best of intentions, in the absence of existing litigation and “no bias” protection, if no settlement agreement is signed, an employer will continue to run the risk of such discussions being used against it in subsequent legal proceedings. Our employment lawyers can help draft or advise agreements that are suitable for both parties and protect them legally. Contact us today for more information. Here are our FAQs on transaction and compromise agreements. Helix Law can design transaction agreements for employer clients. We also act for employees as independent legal advisors to ensure they receive the best possible offer.
A balanced compromise agreement has clear economic benefits for both sides – we can help both sides understand these benefits and enable them to reach a satisfactory conclusion. To be effective, a settlement agreement must meet certain criteria, one of the most important being that a staff member receives independent legal assistance. The reason for this is that the worker can waive a potentially valuable right against his employer. It is therefore important for the employee to know what has been assigned to him in court before accepting the terms of a settlement agreement. Sometimes employers offer workers concordat agreements (formerly known as compromise agreements) to terminate their employment contract, often as a more favourable alternative to dismissal procedures or disciplinary proceedings leading to dismissal for misconduct or ineficiency. The security and privacy of a transaction agreement often corresponds to both parties.