The requirement of a settlement contract by your employer is not a decision that should be taken lightly, and therefore get legal advice before doing so, you will ensure that you are doing it correctly and that you are doing the right step for your own situation. It is impossible to overestimate the importance of this first step, as if you go to your employer to apply for a transaction contract where it is not appropriate, you can openly start to negative consequences at work. Obviously, this is something you want to avoid at all costs if you are already unhappy in your work. The advantage of using a transaction contract is that the circumstances that lead to the termination of your employee`s contract and/or the terms and payments offered may remain confidential if the staff member can only assert a right of proper termination. With a transaction agreement, you may be able to negotiate capital services such as a company car or mobile phone, which you would expect to return to your employer under normal circumstances. It is important that the agreement reached is fair. Each case is different; one person could look for money while another may need a good referral, or even return to work after his or her dismissal. Most transaction agreements lead to a « clean break » – where workers and employers share the business – but sometimes the employment relationship continues after that. Here are some examples: in some circumstances, you may be satisfied with a very basic factual reference, but a complete descriptive reference, about your skills and performance, is generally preferable. The agreement should also specify that if your former employer is invited to submit an oral opinion or fill out a box about you, the information they provide will be no less favourable than the agreed text. The transaction contract is a legal contract between you and your employer – you both have to comply. Your employer may want you to have the confidentiality of the agreement.
Be realistic, but don`t be afraid to ask what you want, especially when it`s not just about money. For example, employers will sometimes provide written apologies as part of a transaction contract. If you are considering applying for a transaction contract from your employer, you need to make sure that you are doing so « without prejudice » and that this will be clearly highlighted by your employer from the beginning. « Without prejudice » means that anything discussed by two parties in a decision about a real or potential dispute cannot be used as evidence in any potential legal proceeding.