Settlement Agreement Standard Clauses

Violation of the agreement: The transaction agreements probably provide that if you violate one of its terms, you will have to repay some or all of your employer`s payments and that you will reimburse them for future costs and procedures if you try to recover the same thing (and, in some cases, losses resulting from the violation). This is a customary clause, although it often needs to be watered down, so only a “material” offence should result in a refund, and even then, the refund should not include the amounts you are entitled to collect in all cases (for example. B, contractual terminations). As a general rule, it will be necessary to amend a transaction contract in order to make the tax compensation clause a little more “worker-friendly”. “contractual obligation” means that the transaction contract is binding only if there is a contract for the final text. This prevents both parties from saying that there has been prior agreement. Previously, it was necessary to deal with a prior dispute with your employer (for example. B disciplinary procedure) before the “unprejudiced” rule can then be invoked by your employer without you referring the matter to a court. In recent years, the concept of “protected dialogues” has been introduced to allow the employer (and employees) to have conciliation discussions without any previous conflicts.

The “appropriate support” clause is generally included in transaction agreements: it is a clause that states that the worker must provide “appropriate assistance” to an employer, for example when a third party asserts a right against the employer, which generally requires the worker to testify on request, for example, and/or to appear in court. Normally (but not always) there will be a clause in a transaction agreement confirming that the parties to the settlement agreement will not be allowed to make “derogatory” comments, either orally or in writing, with respect to the other, after the signing of the transaction agreement. This is important to be correct, and this is the case especially when the worker and/or employer are high level in nature and want to maintain their respective reputations. Of course, you are not obligated to accept a transaction agreement and should only do so if independent legal advice has been sought. As mentioned above, the agreement can only be binding if you have received such a consultation. Reason for termination: This should normally be indicated and, in some cases, the reason is simply indicated as “mutual agreement.” It is more likely that you would not see this title in a settlement agreement given to you or in a cover letter/e-mail. This is a very common formulation. The term “unprejudiced” must mean that subsequent communications cannot be admitted as evidence in subsequent judicial or judicial proceedings.

This is generally all the discussions that preceded “without prejudice” – so it`s not just in writing.