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. Once a valid transaction contract has been signed, the worker cannot apply to the labour tribunal, which is included in the agreement. The advice they give you is limited to the terms of the agreement – for example, that you understand what you agree. They will not advise you on whether this is a good agreement or if you could have done better by going to court. The first $30,000 of the transaction amount is tax-exempt, while all payments for contractual fees (e.g. B, termination, unpaid annual leave or contractual bonus) are subject to the usual tax and social deductions. A transaction contract is an alternative to an employment tribunal or legal action. When deciding on the way forward, it is important to seek advice from an employment law specialist to analyze the strength of your case. It should be noted, however, that if an application is pursued by the labour court, the amount that can be cancelled for undue dismissal is either limited to USD 78,962 or to 12 months of gross salary, depending on the lowest of the two.

Workers should have a reasonable amount of time to review the proposed terms of the agreement; Acas code of conduct for transaction agreements sets at least 10 calendar days, unless the parties agree otherwise. The normal forum for enforcement will be the civil judicial system and not the labour court. The labour courts do not have jurisdiction to rule on contractual disputes if the employment has not been terminated, if the contract is concluded after termination or if the amount of the contractual dispute exceeds $25,000. As a result, only a narrow category of enforcement rights can be sued in the labour tribunal. The settlement of workplace rights can be made by a transaction agreement negotiated by the parties or by a reconciled conciliation agreement on the Advisory, Conciliation and Arbitration Service (ACAS), known as the “COT3” agreement. The consequences of an employer violation of COT3 are unfortunately a grey area. There is conflicting jurisprudence as to whether the worker can decide whether to sue for breach or terminate the contract, thereby reviving the previous rights (Johnson/Communications Associates Ltd AND Case No.29768/76) or whether the only remedy is the application of the payment obligation (Kelly/Moran Transport Ltd Case No.1276/87).