A transaction contract is a legal document dealing with the termination of the employment relationship under agreed conditions. When negotiating such an agreement, it is customary to provide that all communications should be considered „non-prejudice“ and „treaty-compliant“. This means that the parties can speak freely during negotiations and that anything said cannot be used against them as evidence if the negotiations collapse and a formal application is filed in the labour tribunal. It also means that none of the parties is legally bound by anything that has been negotiated or appears to have been agreed upon until a final written agreement is actually signed. After signing, a transaction agreement can give them the certainty that they will not be able to file claims against you in an employment tribunal or tribunal. We specialize in employment issues and transaction agreements and we professionally negotiate their position so that you can go on terms that suit you. If your employer has offered you a transaction contract and you are unsure how you should negotiate the terms, speak to one of our employment lawyers today on 0208 866 6464 or by filling out the application form online. If you are involved in an argument with your employer, it is advisable not to resign until you have used legal advice. The main reason is that your resignation can have a negative impact on your trading position. Depending on the strength of a constructive right of dismissal – the term that refers to forced resignations arising from the behaviour of an employer – you may have difficulty getting a good settlement if you resign. Once you have reached an agreement with your employer, they will usually write it down. You will receive advice, not only on the law and the financial amount that is offered in the account, but also on other benefits that you could possibly get. A draft transaction contract may be submitted to the worker (with the registration „without prejudice and in accordance with the contract“) and invited to be advised as soon as possible and to resign from the employer.
Although this is a draconian and risky approach, employers sometimes dismiss workers with immediate effect (or with a redundancy payment) and at the same time hand over a draft transaction contract with a time frame in which they can react. There is nothing wrong with making a counter-offer that is at the top of what can reasonably be expected. Finally, your employer will probably try to negotiate downwards. However, if you ask too much, your employer will probably not take you seriously.