Transaction agreements are not legally binding unless the employee has received independent legal advice. Employers generally agree to pay for your legal fees, but they don`t necessarily cover all of your expenses. A contribution of between $200 and $500 is common. However, if your situation is complex or your lawyer has to negotiate on your behalf with your employers, your legal fees may be higher. Sometimes it`s worth self-financing the extra legal fees to get a better deal. We are an experienced employment team in which all lawyers are specialists in labour law. We fully advise you on all the implications of signing the transaction agreement and will endeavour to ensure that you receive a sum that represents the strength of your potential claims as well as a reference. 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. Then it must be verified and signed by your lawyer, who will also provide you with independent legal advice on whether the agreement is in your best interest. The transaction contract is recognized by law and one of the few ways to establish such an agreement between the employer and the worker.
For this reason, you must take independent legal advice on the document, usually through a lawyer, before it becomes mandatory. The lawyer must also certify the agreement. 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. A transaction agreement may include a commitment from your employer to give an indication of you if he is asked to do so. The text and form of the reference can also be agreed with the transaction agreement – sometimes as an appendix to the agreement itself. Compensation: for the majority of workers, this will probably be the most important aspect of the agreement. The first $30,000 in compensation under the agreement can normally be paid without deduction for tax or national contributions. It is also important that there is a timetable for payment of this amount (for example.
B in the next payroll or 21 days after the agreement is signed). Depending on the circumstances of the proposed termination, it is often possible to negotiate the number of benefits upwards and we can discuss this with you.