These are legally binding agreements between the employer and the worker, which allow for an amicable agreement and a “clean break” to terminate the employment relationship and in which the worker agrees to waive his right to assert rights against the employer for an agreed sum or compensation. Speed: This means that you receive a financial tally earlier, usually within 28 days. All discussions during the negotiation of a transaction agreement are often treated with the strictest confidence or conducted on an “unprejudiced” basis. This means that it is not possible to rely on communications in court. In the best case scenario, transaction agreements can offer a benefit to both parties. In the worst-case scenario, they can mask discriminatory practices, health and safety violations or illegal management behaviour that, if undetected or unchallenged, can cause irreparable damage to a company`s reputation and have long-term impact on those affected. CASA`s guide to transaction agreements and its new code of conduct provide useful information, but I would always recommend seeking legal advice before any transaction offer, as the specific circumstances and requirements of companies are very different. It`s good for the employee. For staff too, there are often advantages. Cash is quickly received, trial risks disappear, referrals and announcements can be agreed upon, and the stigma of dismissal can be avoided.
The assignment of a transaction contract to resolve a labour dispute is almost always less costly and much less resources than suing your former employers. Other concerns raised with respect to transaction agreements are, of course, the so-called “gagging” clauses. Although the terms of a transaction agreement remain confidential, they do not provide for a person to report to a public authority any wrongdoing that could constitute an allegation of protected information. Whistleblowing is a complex issue and probably the subject of another blog, meanwhile, there is a lot of advice from the government. The first $30,000 in compensation may be exempt from tax and insurance. However, ex-gratia or bonus payments may not be. Have you been summoned for an “off the record” meeting? Don`t you see on an equal footing with your employer? Has a redundancy pack been offered? Did we say to keep it to yourself? Has anything been going on for a while? So a transaction contract may not be so far away. In this blog, we will highlight some of the benefits of versatile legal documents that resolve disputes in the important employer-employee relationship. One thing that is essential, however, is that organizations that use transaction agreements must monitor them carefully and monitor them. While the content of the transaction agreement cannot be disclosed, as the terms are confidential, organizations must decide how and when transaction agreements may be used, which could mask unacceptable behaviour, management practices and cultures within an organization. Harassment, harassment and victimization may go undetected, particularly in the absence of a link between complaints and subsequent transaction agreements.