As a general rule, it does not matter if there is a “reason for withdrawal” in a transaction contract. However, if both parties are bound by confidentiality, it may be helpful to agree on what you will tell your friends/colleagues and future employers about the reasons for your departure. The frequent reasons are “redundancy” and “mutual agreement,” but some agreements do not mention the reason for the withdrawal at all. It`s important to determine what your employer will tell future employers about your work and why you left – for example, by skinning the wording used in each reference they provide. If you have potential claims against the employer, this meeting may be a good time to mention on a “bias-free” basis that you would consider entering into a settlement agreement. Layoffs do not always lead to transaction agreements. Employers who think they have conducted a fair trial may decide to dismiss an employee without any exit package. When layoffs occur, they sometimes involve offering settlement agreements for employees – this blog explains what a transaction contract is and what you should do when you are offered. Transaction agreements can be an opportunity to negotiate the best possible redundancy package for yourself, and getting advice from a serious law firm can help. Don`t worry if you receive sickness benefits below your usual salary if you are made redundant. Your salary is based on your regular salary before you get sick.

People with zero-hours contracts may be entitled to severance pay – but it can be very complicated to work, so consult your nearest citizen council for help. If you decide to sign the agreement, you must also be aware of the rights you are waiving. Once you enter into a settlement contract for dismissal, your job ends and therefore waives the following rights: Let`s start with the obvious question: What is a transaction contract? You can also claim other funds you owe if your employer is insolvent, such as vacation pay or termination pay. You can get it even if you have worked there for less than 2 years and you cannot receive legal benefits. Your right depends on what is stated in your employment contract or in the staff manual.