It is important that you understand everything in the agreement, and if there is something you cannot respect (or a term you have already violated), you should discuss it with your lawyer. My settlement agreement says “without prejudice” – what does that mean? A transaction contract does not necessarily mean that your employment is coming to an end. You may have filed a complaint about your job, which your employer recognizes as valid, but it wishes to remain confidential. On the other hand, your employer may change the length of work in a way that might otherwise constitute an offence. They can offer you compensation as part of a transaction agreement to achieve this. If you do not sign the contract, you retain all your rights to assert a right against your employer. Even if the parties have agreed that your compensation is not taxable, it is customary for employers to demand “tax compensation” as part of the transaction agreement. This means that if HMRC decides that a tax is due, you will be responsible. Compensation generally stipulates that you must reimburse your employer for any tax that HMRC charges from your employer.
Another important tip is to make sure you have the right lawyers who act for you. If you don`t believe in the skills of your lawyers, always remember that you have the right to change lawyers if you wish. At Truth Legal, we have extensive experience in successfully negotiating transaction agreements. This fact sheet explains how a transaction contract works and what happens when a comparison offer is offered to you by your employer. ACAS is synonymous with advisory conciliation and arbitration service. Casa does not need to play a role in your transaction contract, but they do provide employers and employees with a free conciliation and telephone counselling service. Often an agreed reference is part of the transaction agreement, with a clause stating that the employer does not deviate from the text agreed under the contract when referring to the worker. Make sure you have all the documents and data you need when you receive advice. This could be your employment contract, the date of the dispute and copies of emails about the payment. It is important that your lawyer review your contract to ensure that you get the maximum amount in the most effective way of tax.
As it is customary for you to provide your employer with tax compensation in the transaction agreement, you must be informed of the tax you must expect if HMRC challenges the payments made under this agreement. This means that the draft agreement is “off the mark” and cannot be presented to a court as evidence of a confession against one of the parties.