It is also important to specify in the settlement agreement whether the release of mutual claims takes place. For example, if only one party has asserted claims in pending cases, you might want the settlement agreement to disclose not only the rights invoked in the dispute, but also any claims the defendant might have in connection with the same underlying events. Most disputes are settled, so it`s important for legal teams to be aware of the most important issues when developing a settlement agreement. This is especially true now that businesses around the world are facing the COVID-19 pandemic and the resulting burden on supply chains and business relationships. In other words, do you intend to disclose claims that are not yet known to exist, but that they can be discovered later? If so, the settlement agreement should expressly disclose all known and unknown claims. A general exemption from receivables is not always sufficient to release claims that are still unknown at the time of payment. When entering into settlement agreements with your current or former employees, employers typically identify all “living” claims and alleged claims that the employee may have against the company and contain a take-back provision that the worker, as a worker who has received legal advice from his or her legal counsel, has no other rights against the company or its senior management. workers or shareholders who arise from their employment relationship or termination of work or in any other way. It is customary that certain rights are also excluded from the scope, i.e. future rights to loss of pension rights, rights to the application of the terms of the settlement agreement, personal injury and clauses with the new whistleblowing regime (discussed elsewhere in this newsletter) that prevent an employee from making a protected disclosure in a timely manner.
In order for a settlement agreement to be legally binding and for a staff member not to assert claims before an employment court, the settlement agreement contains a provision explaining the confidentiality obligations and the parties generally agree that the terms of the settlement agreement must remain confidential. Still, think about whether you want to share the existence of the settlement agreement with other parties to the agreement. For example, you may want your customers or certain business partners to be notified of billing on the account. As a general rule, confidentiality rules also allow disclosures to the extent necessary by law, regulation or court order.. . . .