Settlement agreements offer the advantage of safety and a clear break between a worker and their employer. An employee has the security of a dismissal document that composes him with other aspects of the dismissal, such as an employment relationship that composes him. The employer, on the other hand, has the guarantee that he will not have to deal with a future claim of this worker. For these reasons, many employers and workers use the settlement agreement procedure, even if an employer has gone through a fair trial and/or the employment relationship has ended by mutual agreement. The complaint contained several grounds, including a right to age discrimination under the California Fair Employment and Housing Act (FEHA), Cal. Govt. Code 12940 (a). The agreement therefore provided for the waiver of the right to sue the state`s age right under FEHA and released all age discrimination rights that the worker could assert under the Federal Employment Discrimination Act (ADEA), 29 U.S.C. § 623. It goes without saying that you are not obliged to accept a settlement agreement and should not do so until independent legal advice has been sought.

As mentioned above, the agreement cannot be binding unless you have received such consultation. While you`re not ready to sign a deal agreement at first, it can have benefits. Labour justice proceedings can be costly, time-consuming and incredibly stressful. A realistic transaction agreement, given these other factors, may be a good outcome. It will also bring a certain degree into a perhaps difficult period of your life. It may seem trivial, but once you have a signed and dated transaction agreement, don`t put it in the «finished and dusted» file. You have to act like this: a settlement agreement does not necessarily mean the end of your employment. You may have made a complaint about your employment, which your employer recognizes as valid, but which is concerned about remaining confidential. Otherwise, your employer may change the length of your employment in a way that otherwise constitutes a breach of contract. You can offer yourself compensation as part of a transaction agreement to achieve this.

Almost all transaction agreements contain a standard confidentiality agreement. Sometimes this only covers the terms of the amount proposed in the agreement. However, in some cases, it covers the existence of a settlement agreement, which means that you should not inform anyone that this is the way you agreed to terminate your contract. Normally, you can agree on exceptions to this rule, so it does not apply to direct family members, spouses and professional advisors. If people know you have a dispute or right against your employer, it`s important to see what kind of confidentiality agreement has been offered to see if it`s appropriate. In most cases, no. If you have signed a valid transaction agreement containing a confidentiality clause, this is usually enough to prevent you from telling a story in the media. It is possible (and likely) that your former employer could sue you for breach of contract and significant damages if you did. A «protected conversation» allows you and your employer to have confidential interviews before dismissal, without either of you being able to use the conversations in a subsequent wrongful dismissal proceeding against the other. However, this protection applies only to ordinary rights to protection against dismissal, and not to other rights such as discrimination.

In addition, the employer loses protection if they behave inappropriately in the conversation, such as by inappropriately putting pressure on you to sign. How to Use a Transaction Agreement to Solve an Employment Problem I represent a national company with branches in California…