In this article, our second of three guidance documents for the development of transaction agreements, we focus on the conditions and clauses that are absolutely necessary for inclusion in a transaction agreement. It is necessary to include certain conditions in a transaction agreement, as this would mean that the agreement is not legally binding and therefore your business remains open to potentially costly work rights. It is also necessary because the non-registration of the terms would mean that the agreement would not cover the results you imagine, which could make it ripe for operation by a well-informed former employee. A second essential condition of transaction agreements is that the worker be advised by an independent legal advisor who should sign a certificate to confirm that he has done so. They must be mentioned in the agreement itself and covered by appropriate insurance. One of the most effective techniques I know and use as an intermediary is to start negotiations on the terms of the settlement agreement before the joint conciliation meeting. Wait a second! It`s counter-intuitive! How do you negotiate an agreement before you even sit down and face the other side? They don`t even know what they want! However, communication is not recognized in some jurisdictions (including the United Arab Emirates). Therefore, documents identified as “non-prejudice,” such as draft transaction agreements, may be submitted to the court or the arbitral tribunal and subsequently invoked in the absence of a transaction. For this reason, it is customary in the United Arab Emirates to limit the documentation of transaction negotiations and to try to agree on a confidentiality agreement covering any exchange of information during transaction negotiations and to make it clear to each exchange that transaction offers are made in full without any responsibility. The requirements can be categorized into two broad categories – the agreement must indicate the rights it must pay, and the worker must be legally advised as to whether he can take legal action on those claims. The transaction contract should be executed by persons authorized to do so. This is particularly important in the Middle East, as many jurisdictions, including the United Arab Emirates, require the signatory to have explicit powers to implement transaction agreements or, at the very least, to bind the company (for example. B, Article 58.2 of the United Arab Emirates Code of Civil Procedure).
However, it is good practice to tailor transaction agreements to the particular circumstances of the situation. For example, if a six-figure director is developed to enter into a transaction agreement, there is clearly no need to ask him to waive his right to assert a right under the National Minimum Wage Act of 1998.