A transaction agreement (formerly known as a compromise agreement) is a contract between you and your employer to which both parties must legally comply. They are generally used in situations where both parties feel that their working relationship is not working and where a “clean break” is the best way forward. Under these conditions, you and your employer can agree on the basis of the end of your employment in the company. Be realistic, but don`t be afraid to ask what you want, especially when it`s not just about money. For example, employers will sometimes provide written apologies as part of a transaction contract. 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. When an employer decides to lay off workers, it must, by law, consult with the workers concerned. This process can take time and weigh on both parties, especially when the employer makes many layoffs at the same time. Transaction agreements allow employers and workers to opt out of the consultation process and get a “clean break.” Workers will then be able to receive more money than they are entitled to through legal benefits. Employers may also prefer transaction agreements because they prevent the worker from filing a future claim for unfair dismissal. You are therefore an employee and your employer has just mentioned the words “billing agreement.” What does that mean? How will this affect you? What do I need to know? Do not worry. You`re in the right place. We hope to give you all the information you need to know about transaction agreements by answering the questions we are most frequently asked. A transaction contract does not necessarily mean that your employment is coming to an end. You may have filed a complaint about your job, which your employer recognizes as valid, but it wishes to remain confidential. On the other hand, your employer may change the length of work in a way that might otherwise constitute an offence.
They can offer you compensation as part of a transaction agreement to achieve this. Termination date: This date is set when your employment is terminated or ends. This can take many months, or very often, the proposed date is only a few days away from the date the agreement was submitted to you (or if the date may have already passed). Your termination date also depends on the notice period to which you are entitled (see below). If the transaction is discussed in the context of an ongoing legal proceeding or a dispute between the parties, all negotiations are “unprejudiced” and cannot be tried before the Court of Justice.