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. To the extent that the conditions of protection are met, these rules cannot be availed of the fact that the employer has made an offer of settlement as the basis for a legal challenge. Sometimes an employer wishes to be able to rely on the offer of assistance to a fee application when the worker then invokes a means taken from the jurisdiction, but which has not been successful or receives less than the employer`s initial offer. Under these conditions, each offer should be labeled: w ithout prejudices, at no cost. If you have information about practices within the company such as fraud or misconduct, they will often want to pay you a lump sum in exchange for signing a confidentiality clause in a settlement agreement – the so-called “gag clause.” We only represent staff, so we really understand what your concerns are when you have been mistreated at work and how you can help you get a fair settlement. Even if the parties have agreed that your compensation is not taxable, it is customary for employers to demand “tax compensation” as part of the transaction agreement. This means that if HMRC decides that a tax is due, you will be responsible. Compensation generally stipulates that you must reimburse your employer for any tax that HMRC charges from your employer.
If a worker is unable to perform his or her duties due to a long-term illness, the employer will sooner or later consider terminating the worker`s employment. Sometimes an employer may prefer to terminate employment under a transaction contract to avoid the risk of rights that may include discrimination on the basis of disability and wrongful dismissal. These are important questions to consider: your lawyer should advise you on the continued loss of the pension, especially if you have a permanent pension. Pension contributions must be continued during the notice period, unless your contract says otherwise. If an agreement is reached with your employer to pay a lump sum to your pension under the billing conditions, you may be eligible for the tax-free payment.