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. You and your employer can offer a transaction contract. Your employer usually pays for you for independent legal advice. If you sign a transaction contract without first seeking independent legal advice, you can still go to an employment tribunal. Most compensations of less than $30,000 can be tax-exempt. How taxes bypass the payment of notification is more complicated and you need to discuss your particular circumstances with your lawyer. Beyond special rights, employers will also strive to ensure that there are no other possible claims in the future that you may make against them. Comparison agreements for patterns or precedents often have a list of all types of known work claims, even those that might not be applied to you. For example, most agreements retain pregnancy and maternity formulations, regardless of your gender. You could refer to the rights of part-time workers and the right to be heard with respect to layoffs, even if you have never been in those situations.
Once you have reached an agreement with your employer, they will usually write it down. It is important that your lawyer review your contract to ensure that you get the maximum amount in the most effective way of tax. As it is customary for you to provide your employer with tax compensation in the transaction agreement, you must be informed of the tax you must expect if HMRC challenges the payments made under this agreement. In the absence of a transaction agreement and depending on the nature of the dispute or problem, the solution can be followed by a performance management, disciplinary procedure or appeal or mediation procedure, depending on what is best. It is important that employers go to a fair trial and apply the Acas code of conduct for disciplinary and appeal proceedings, because if the worker is dismissed, this cannot be the reason for wrongful dismissal. If you have a lawyer, you can ask them to take with you or participate in a conference call when it comes to non-prejudice discussions. Such discussions are not like a formal complaint/disciplinary meeting where only a union representative or a colleague can be brought in. This means that the draft agreement is «off the mark» and cannot be presented to a court as evidence of a confession against one of the parties. The legal concept «without prejudice» is based on the principle that it is useful for the parties to speak freely when trying to reach an agreement. If they know that everything they say in these discussions cannot be used as evidence against them, then it allows the parties to be more open. Probably! But this information does not replace technical legal advice on your situation. If you would like additional advice or if you intend to obtain a transaction agreement, contact Truth Legal to agree to a free, non-binding consultation with a lawyer.
Another important tip is to make sure you have the right lawyers who act for you. If you don`t believe in the skills of your lawyers, always remember that you have the right to change lawyers if you wish. At Truth Legal, we have extensive experience in successfully negotiating transaction agreements. However, as a general rule, if you sign a transaction agreement, you should consider that it is a feature of everything that has happened between you and your employer and that you cannot assert rights against them.