This is an elegant way of saying that if you have agreed on something with your employer and it does not appear in the settlement agreement, it is not binding on any of you, even if it is something you would normally get in your employment contract. Breach of Agreement: Settlement agreements likely provide that if you breach any of their terms, then you will have to reimburse some or all of the payments made by your employer and compensate them for future costs and procedures to recover them (and, in some cases, losses resulting from the breach). This is a common clause, although it often needs to be watered down, so only a “material” breach should result in a refund, and even then, the refund should not include the amounts you were entitled to in each case (for example. B contractual termination indemnities). However, a settlement agreement doesn`t always have to result in the termination of your employment relationship (although most settlement agreements do). Tip 6 – Confidentiality surrounding the settlement agreement and restrictions on derogatory comments As a general rule, a settlement agreement may contain certain standard clauses that we have described below. Of course, you are not obliged to accept a settlement agreement and you should not and cannot do so until independent legal advice has been sought. As mentioned above, the contract can only be binding if you have received such advice and a lawyer has provided the appropriate certificate. It is up to you to decide whether or not to accept the settlement agreement. However, as mentioned earlier, a settlement agreement cannot prevent you from reporting crimes to the police, a competent authority (e.B.

to a supervisory authority) to the denunciation or reporting of something that has not yet occurred at the time of signing the settlement agreement, p. . . B if you stayed with your employer and the harassment continued. In its simplest form, a settlement agreement provides for termination payments (which may include your termination, a tax-free amount, dismissal, vacation, bonuses, and other amounts). However, there are many other clauses (see below). In exchange for receiving these payments, you must agree not to assert any legal claims against your employer (for example. B, wrongful termination, discrimination or breach of contract). For example, they can call you to a stand-alone meeting to discuss the agreement, or they can associate it with a meeting you already want to attend (for example. B, a disciplinary meeting, complaint or performance management meeting). While it is not required by law for an employer to contribute to your fees when consulting on a settlement agreement, this is recognized as good practice. which is bigger than it should be.

We look at some of the areas where employers may miss a spin. Reference: An employer is not required to provide you with a job reference, so it is always advisable to ensure that it is attached to the agreement that becomes binding on your employer. Most employers only provide a factual reference that indicates the employee`s employment data and job title. However, it may be possible to negotiate a more personal relationship, which in turn should be annexed to the agreement. A dismissal clause should also stipulate that verbal references to future employers are no less favourable. Settlement agreements offer the benefit of safety and a clear break between an employee and their employer. An employee has the security of a termination document that indicates the financial compensation they will receive as well as other aspects of the dismissal, such as an employment reference. The employer, in turn, has the guarantee that it does not have to face a future claim from that employee. For these reasons, many employers and employees use the contract settlement process, even if an employer has gone through a fair process and/or the employment relationship has been terminated amicably. Pension: If necessary, contributions to your pension fund must continue until the date of termination, and if severance pay is paid, your employer may be required to make contributions for an equivalent period, depending on the terms of the contract. If you choose to pay a portion of the settlement amount into your pension, this must be provided for in the settlement agreement, otherwise you may not be able to take advantage of the tax-free nature of the payment into your pension. Therefore, you may want to try to postpone the termination date so that you can stay employed for a while while looking for a new job.

We always ask that the number of outstanding vacation days be explicitly stated in the billing contract in order to avoid any misunderstanding (especially if the vacation is transferred from a previous vacation year). For a settlement agreement to be legally binding, an employee must seek independent legal advice, which the employer usually pays. However, getting a settlement agreement can still be a daunting experience. It is also common for a settlement agreement to explicitly state that it cannot be used to prevent you from engaging in whistleblowing after it has been concluded. However, if you are considering reporting your employer, you must follow your employer`s alert procedure before contacting a relevant external organization. The Code also includes examples of “inappropriate conduct” in connection with making a settlement, including undue pressure on you to accept an offer. .