In its simplest form, a transaction agreement provides for termination payments (which may include termination, tax-exempt, layoffs, leave, bonuses and other amounts. However, there are many other clauses (see below). In return for obtaining these payments, you must agree not to assert rights against your employer (for example. B unfair dismissal, discrimination or breach). We regularly advise a number of clients, from public and private sector employees to directors, shareholders and professional athletes. In certain circumstances, we are ordered not only to advise on the terms themselves, but also to negotiate higher settlement amounts. 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. Restrictive agreements: If you have restrictive agreements in your employment contract, these will likely be confirmed in the transaction contract.
It is important to ensure that the restrictions set out in the agreement are not greater than those in your original employment contract. It may also be possible to negotiate a reduction or, in some cases, the total removal of certain restrictions or restrictions. Where restrictive alliances are new, they also need to be checked to see if they are too heavy and if you agree with them. However, as noted above, a transaction agreement cannot prevent you from reporting violations to the police, from reporting them to a competent authority (for example. B a regulator) or report anything that had not been done at the time of signing the transaction contract, for example. B if you stayed with your employer and the harassment continued. 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. Our labour law specialists will advise you on the agreement, wherever you are resident, whether in London or elsewhere in the UK.