The law requires that you be advised by a qualified professional. „A transaction contract only becomes binding when you have received independent legal advice,“ says Philip Landau, labour law specialist at Landau Zeffertt Weir Solicitors. If there are ongoing issues, such as alleged discrimination, or if your employee has filed a complaint that you have not maintained, you may feel that trust has completely collapsed. It may be in everyone`s interest that there be a termination on consensual terms. It is advisable to provide legal advice before offering a settlement agreement. This can be offered face-to-face or using a transaction contract letter in such situations to ensure that it does not expose your business to an increased risk of litigation. Each transaction agreement is different and the terms are not set until after negotiation. However, a typical comparative agreement covers: confidentiality clauses are common in transaction agreements. They generally mean that the parties promise not to make prejudicial statements about each other. This would prevent you from making damaging comments in the press or on social media about your employer, even if you are telling the truth. It could also prevent you from reporting abuse as whistleblowers. Your lawyer should explain the consequences carefully. For example, you informed colleagues of your negotiations before seeing the confidentiality clause and they understood that you had to keep the existence of the agreement confidential.
If you sign a clause that you have already violated (or if you violate the clause after signing) and your employer finds out, they may argue that they no longer need to respect their side of the bargain. You can refuse to pay compensation or even try to recover money they have already paid you. 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.