A transaction agreement (formerly known as a compromise agreement) is a legally binding agreement between you and your employer. This generally provides for an employer`s severance pay in exchange for your consent not to make claims in court or court. As a general rule, the employer requires that you keep the conditions, such as. B the amount and circumstances of termination of your contract. It may be helpful to use a transaction contract to terminate an employment relationship that, for whatever reason, no longer works or that resolves disputes or complaints. It may also be appropriate if you wish to avoid the uncertainty of going to an employment tribunal or do not have the time or means to go through a lengthy disciplinary procedure, appeal, capacity or dismissal. 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. If the transaction agreement contains a termination agreement, the employment may end with the necessary termination or the date can be agreed as part of the transaction agreement. If it does not meet all of these conditions, it is not valid and you do not have to comply (although your employer does).
This means that you can still take legal action in an employment tribunal. Talk to your nearest citizen or local lawyer if you feel your agreement is invalid. The transaction contract should include a clear breakdown of agreed payments and whether any of them should be paid to the worker tax-free. A transaction contract is generally used as part of the termination of employment, but it is not necessarily used. A transaction agreement could be used even if employment continues, but both parties want to resolve a dispute between them. No no. Transaction agreements are completely voluntary and must be concluded by both parties. Once the contract is signed by you and your employer, it becomes a legally binding document. It is important that you do not have to sign the transaction agreement if you do not wish to do so.
Of course, your employer will not pay you the amount of compensation if you do not sign the transaction contract. If you have the right drawings of letters and forms, you can save time and help you manage information quickly and easily. The following templates can be used free of charge and help you establish a transaction contract and write a transaction offer letter. Your employer may ask you to sign a „complete and final“ settlement agreement.