For a settlement agreement to be legally binding, the employer is required to offer and advise the worker to independent legal advice on the terms and effects of the settlement agreement. The legal counsel advising the worker must sign an advisor`s certificate to confirm that the worker has received independent legal advice. Richard Grogan, an employment lawyer with Richard Grogan & Associates, writes about settlement agreements. Typically, a transaction agreement would include explicit language stating that no other amounts should be paid to the employee, nor costs related to other positions or matters related to the employment relationship, including notice periods, expenses, fees, commissions or bonuses. Employees may often wonder if certain expenses, unknown to the parties to the negotiations, are being addressed. Such a clause excludes their future consideration. Very often, an employer will endeavor to ensure that the transaction agreement covers one of its affiliated companies or associates, as well as their directors, senior officers, employees or shareholders, resulting from or related to employment and/or termination in accordance with the transaction agreement. Very often, an employer wants to avoid possible disputes or negative publicity and therefore proposes the implementation of a settlement agreement. In exchange for a more lucrative financial departure agreement, an employee agrees that he or she will not take action against the employer in the future.
This means that despite the potential or actual existence of a dispute between the parties and the award of the debt to a party, both parties decide that neither party prevails over guilt for the purposes of the agreement and that the agreement is freely executed by both parties with their full consent and approval. For more information on settlement agreements or other matters related to terminations, please email Emer Murphy at [email protected], Marc Fitzgibbon at [email protected] or call 01 644 580 A staff member is deemed to have entered into a voluntary settlement agreement if they have been fully informed of the consequences of performing such a contract. Therefore, in most cases, a settlement agreement contains a clause in which the employer gives the worker the opportunity to have the agreement independently evaluated by his or her own lawyer. In order to avoid any future discrepancies, it is advisable to agree on the specific language to be indicated as a reference and to include it in an annex to the main transaction agreement.