Dual Settlement Agreement
Transaction agreements are a very useful way to ensure that disputes between employers and workers (or potential disputes) are concluded without both parties being forced to take legal action. However, the law can be complex with regard to them and it is always a good idea to take appropriate professional advice before starting to go along the route of the settlement agreement. 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. If the transaction contract does not meet all the legal requirements, it is not a valid regulation and leaves the worker open to asserting rights against the employer. It is therefore important to be very diligent in the development of the agreement. What is a transaction agreement or a compromise agreement? That`s the question. This question arises because in July 2013, the name of a so-called „compromise agreement” changed. As a general rule, the transaction agreement also contains a confidentiality clause stipulating that the employee treats confidentially the terms of the agreement, the amount of the account and the reasons for the agreement. One situation in which you might consider using a transaction contract could be, for example, an employee not doing well and neither party wants to go through a lengthy capacity process and employers and workers are prepared to terminate employment quickly under agreed financial terms.
This is the case when you have a dispute with your employer and your employer wishes to resolve the employment issue by inviting you to sign a compromise agreement allowing them to terminate your employment contract by mutual agreement. In return, your employer pays you a certain amount of compensation for the loss of office. For reasons of clarity, I would always expect that there would be a section dealing with issues that should remain confidential. It would be rare for such agreements not to be confidential. Confidentiality requirements are generally related to provisions that also address issues such as lack of competition and trade restrictions. These often look like confidentiality agreements. An action such as creating a store next door to provide the same services, or advertising for the same customers, is generally prohibited for at least a certain period of time. Unfortunately, many companies and individuals have resusc issued these obligations, which tends to create litigation. Often an agreed reference is part of the transaction agreement, with a clause stating that the employer does not deviate from the text agreed under the contract when referring to the worker. There is no set amount of payments and the amount of compensation depends on the individual circumstances of each case.
Factors to consider may include: If you ask a law firm to act for your employees, that company will negotiate with your own legal team or lawyers if they have problems with the transaction agreements. In order to make the process as simple as possible, it is important that you include employment lawyers on your behalf in both the development of transaction agreements and advice on your proposed expanded billing conditions.