How To Approach A Compromise Agreement

This guide explains how the negotiation process is likely to work when employers and workers explore the possibility of entering into a transaction agreement. The focus is on discussions that take place before the end of the job. Negotiating transaction agreements can be a frightening and sometimes painful prospect. After a few rounds of negotiations with your employer and if the package offered to you as part of your transaction contract is not what you wanted, discuss carefully with your lawyer what the various costs and benefits are to sign your transaction contract or refuse the transaction contract and possibly argue; If you discuss it in detail, you can make an informed decision about what you want to do in the future. To negotiate a transaction contract, you need to find the balance between the carrot and the stick. Give your employer something about the concessions they want. The formation of a formal complaint can contribute to the organization or continuation of negotiations on a transaction agreement, requiring the employer to address outstanding issues and identify potential weaknesses in the employer`s case. If an employer ignores a complaint or does not deal with it properly, there is a good chance that it will strengthen your potential rights and increase the amount of compensation you may receive. It can also help to obtain information about your employer`s general approach to negotiating transaction agreements, i.e.

the packages usually offered by your employer and how they are handled on various issues (e.g. B, the extended redundancy formulas that the employer proposes in terms of habit and practice, or the position it pays for bonus). You have this information, but if you don`t, your lawyer may have this information (based on his or her experience with the employer) or you can talk to a colleague (current or former) about what they received as part of their settlement agreement (although you`re careful here – you don`t want to violate confidentiality clauses (and maybe be discovered) before negotiations begin). Transaction agreements are a simplified, rebranded version of „compromise agreements” that have been in use for many years. Despite the name change, a conciliation or compromise agreement, there remains a legally binding document that contains the full terms of an agreement agreed with your employer.