Pre-Termination Negotiations And Settlement Agreements

3. So what are the next steps to start a pre-closing procedure? It is only in simple cases of wrongful dismissal that you can count on negotiations before ending. If there is an automatically unjustified ground for dismissal, court hearings are allowed before the end. Unjustified automatic dismissals include dismissals due to pregnancy and family leave, dismissals for the exercise of a legal right, dismissals for health and safety reasons, as well as union dismissals or participation in trade union policy activities. Such examples do not prevent a party from neutrally explaining the reasons that led to the proposed transaction agreement or from indicating likely alternatives in the absence of agreement, including, if necessary, the possibility of initiating disciplinary proceedings. If there is no transaction agreement, the solution can be followed, depending on the nature of the dispute or the problem, by performance management, disciplinary or claim procedure or mediation, depending on what is best. Employers wishing to quickly terminate the employment of potentially problematic workers will have been invited to negotiate before the termination on 29 July 2013. They must provide a safe path for open discussions on a conciliation agreement to end the employment relationship, without the result being an unjustified right to dismissal. As a general rule, employees must have a minimum of 10 days to consider the terms of the transaction agreement.

However, this period may be reduced if agreement is reached between the parties. If the worker decides not to accept the terms offered, the employer must continue to take appropriate steps to resolve outstanding issues following the appropriate formal procedure. This can happen when the worker is already in a long-term illness. Here, too, a draft contract is presented and an answer is requested from the employee. A longer period of time may be granted, as the situation is probably less immediately unpleasant if the parties do not interact on a daily basis. It is not uncommon for a worker who has complained to go on a long-term sick leave, leading to a «winless» situation for both parties, where the relationship seems unlikely to return to normal. These negotiations must be conducted with care and sensitivity, taking into account the health of staff and possible disability problems. For example, a meeting may be proposed off-site or at the home employee`s home. An employer may propose to terminate the employment relationship on mutually agreed terms before a dispute arises with the worker. Similarly, a staff member may propose an agreement. The employer may have a number of reasons, and this will include perceived deficiencies in the employee`s performance, organizational changes or simply a personality shock. Instead of going through capacity, dismissal or disciplinary procedures with a risk of litigation and potential negative publicity, the employer often considers it economically advantageous to open confidential withdrawal negotiations for a financial settlement.