An employee who is faced with the possibility of termination without notice for serious misconduct may be willing to enter into a cash settlement – work that offers the employee, during the investigation phase, a neutral agreed employment instead of seizing his chances of taking disciplinary action in a week or two. Individual scenarios – In many cases, agreements are offered as an alternative to staff performance, disability due to illness, disciplinary or dismissal process. For an employer, refusing an employee to take disciplinary action involves time and money for management. Offering a transaction agreement can be an efficient, cost-effective and quick way to end the employment relationship safely. Termination date: the date on which your employment relationship has ended or is ending. This can be many months away, or very often the proposed date is a few days from the date you submitted the contract (or if the date has expired). Your termination date also depends on the notice period to which you are entitled (see below). Global agreement: Normally, transaction agreements stipulate that by signing the agreement, you do not rely on the inclusion of another existing document before the agreement is signed. In other words, the transaction agreement contains the full terms between the parties. « subject matter of the contract » means that the settlement agreement is not binding, unless there is a contractual contract concluded for the final text.
This prevents either party from saying that there has been a binding agreement before. If the interview takes place at a time when the worker sufficiently understands the case against him and assesses the seriousness of the matter and considers dismissal as a real possibility/probability, a comparison becomes much more attractive. We, as labour law advisors, must remember that just because most law firms use precedents of settlement agreements does not mean that we should act in a regulated manner. It is our responsibility to open our customers` eyes to what is possible. As you know, Henry Ford said, « If I had asked people what they wanted, they would have said faster horses. » The same is true here. If your client asks for a horse, explain that a car is possible and give them the option. Note: The transaction agreement defines the communication to which you are entitled, including the question of whether or not you should act. Very often, you are paid instead of a dismissal (also known as « PILON »).
Typically, a PILON payment reflects your complete termination in a package (or the balance of a termination due) and also means that your termination date will be much earlier than if you had processed your full termination….